Falconbridge profit up on metals price gains

Higher metal prices gave Falconbridge Ltd. a third quarter 1987 net profit of $17 million, or 23 cents a share, the company reports.

That’s close to three times the $6 million profit (9 cents a share) the company recorded for the similar period in 1986.

In the nine months to Sept 30 the company had a consolidated loss before extraordinary item, of $16 million, or 23 cents a share, against a loss of $22 million or 37 cents a share, in the first nine months of 1986.

Including the extraordinary item, (a gain of $46 million mainly from the sale of Falconbridge’s 49% interest in Western Platinum), 9 month earnings this year were $30 million or 43 cents a share,

In the similar 1986 period, Falconbridge realized an extraordinary gain of $86 million from the sale of subsidiary and associate companies, and that resulted in 9-month 1986 earnings of $64 million, or $1.11 a share.

In the latest third quarter, revenues climbed to $329 million, from $279 million a year ago, and 9- month revenue weighed in at $906 million, up from $861 million in the 1986 9-month period.

On the exploration front, the company notes progress on its Lindsley base/precious metals prospect in the Sudbury area of Ontario. As reported last week (N.M., Oct 26/87) further assay results are expected soon on this discovery, where six drills are currently at work.

Not unexpectedly, in light of the Canada/U.S. free trade agreement’s importance to the mining industry, the company mounts a spirited defence in its report on the agreement.

“The United States,” it reminds shareholders, “is the largest consumer of Falconbridge’s products and accounts for more than one- third of our sales. Continued access to the U.S. market is essential for the wellbeing of the company and all its employees, both union and non-union.

“The free trade agreement is not perfect, but with the protectionist measures currently being proposed in the U.S., it is much better than no agreement at all.”