Inco boasts record earnings
Record first-quarter earnings of $276 million and the prospect of another record-breaking year took centre-stage at Inco’s annual shareholder meeting.
The company has racked up five consecutive quarters of record profits, and is poised to break the $1-billion mark in earnings this year.
With 34% of the market share, Inco is the world’s largest producer of nickel and is reaping the benefits of an unprecedented commodities boom. The company’s average realized price for nickel increased to $4.88 per lb. in 1988 from $2.18 the year before.
During the first quarter, the average realized price climbed to $6.59 per lb.
Falconbridge delays Raglan
Falconbridge has concluded that an average price of US$4 per lb. nickel is unrealistic in regard to the huge Raglan deposits, controlled by its 74%-owned affiliate, New Quebec Raglan Mines.
Situated in Quebec’s remote Ungava region, the Raglan deposits host reserves of 12 million tons grading 3.11% nickel and 0.79% copper.
Meanwhile, Falconbridge is making a bid to acquire its remaining 26% interest in New Quebec Raglan. The bid includes a $5.36-per-share cash offer, or one Falco share for each 5.5 Raglan shares held.
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