Higher contract revenues from the Westray coal project in Nova Scotia and the Mt. Hundere lead-zinc project in the Yukon helped Hillsborough Resources (TSE) double its profit in the first quarter of the year. For the 3-month period ended March 31, the company reported net income of $996,000 (20 cents per share) on revenue of $10.8 million, up from $490,000 (10 cents per share) on revenue of $5.9 million in the year earlier period.
“Although the earnings pace achieved in the first quarter is expected to moderate considerably, the outlook for the balance of the year is expected to be equal or slightly better than in 1990,” said President George Vooro.
He noted that the company’s mine development contract at the Westray coal mine was ahead of schedule and will be completed sooner than anticipated.
Meanwhile, development of the Mt. Hundere lead-zinc orebody, in which the company has a 20% interest, also proceeded rapidly during the quarter. Both mine development and mill construction are on schedule at Mt. Hundere where startup is expected by mid-summer. The new mine is being developed in a joint venture with Curragh Resources (TSE) which also operates the Faro lead-zinc mine in the Yukon. About 400 unionized workers recently went on strike at Curragh’s Faro operation.
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