Tabling its final quarterly report before its takeover by Brazil’s Companhia Vale do Rio Doce (RIO-N), Inco (N-T, N-N) has unveiled the largest quarterly profit in its 104-year history.
For the recent third quarter, Inco earned US$701 million (US$3.08 per diluted share) on sales revenue of US$2.3 billion, up from earnings of US$64 million (US$0.29 per diluted share) on revenues of US$1.1 billion for the third quarter of 2005.
The biggest reason for the record profits was record-high nickel prices: For the third quarter of 2006, the London Metal Exchange cash nickel price hit a record quarterly average of US$29,178 per tonne (US$13.24 per lb.), compared with the third quarter of 2005 average of US$14,567 per tonne (US$6.61 per lb.).
The LME cash nickel price set a record high of US$34,750 per tonne (US$15.76 per lb.) on Aug. 24, 2006.
Inco produced 125 million lbs. of finished nickel in the third quarter, up 13% from the year-ago period owing to the start up of nickel production from Voisey’s Bay in Labrador and higher output from its Manitoba operations.
Meanwhile, cash costs dropped to just US$2.12 per lb. in the third quarter, down 30% from a year earlier. The drop is attributed to higher byproduct credits from Inco’s output of copper and platinum group metals.
Inco finished the period with US$1.8 billion in cash, and a 20% debt-to-capitalization ratio.
Be the first to comment on "Inco saves best for last"