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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