Eldorado burdened by large debt load

Excessive debt is being cited once again as the reason behind losses at Eldorado Nuclear Ltd. The big uranium miner and nuclear fuels manufacturer reported a loss of $12.7 million on revenues of $69.7 million during the third quarter of 1986. This compares with a loss of $10.8 million on revenues of $83.5 million in the corresponding quarter of 1985.

The company, which actually had an operating profit of $28.7 million during the first nine months of 1986, was forced into the red by interest payments of $57.6 million. These payments represent 40% of the company’s total revenue realized during the first nine months of 1986, Eldorado says. As at Sept 30, debt totalled $522.5 million.

As a result, “no significant change in profitability can take place unil the company is able to reduce its long-term debt,” chairman and chief executive officer N. M. Ediger concludes in the company’s quarterly report to shareholders.

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