Inmet profitable in Q2

Better operating results but poorer metal prices combined to keep second-quarter earnings at Inmet Mining (IMN-T) roughly the same as in 2000. For the three months ended June 30, the copper and gold producer earned $1.6 million (or 2 per share) on revenue of $28.7 million.

Earnings in the second quarter of 2000 were $1.7 million, made on revenue of $24.6 million.

Production at the copper-zinc mine at Cayeli in Turkey returned to normal in the quarter, having been shut down by a strike between December 2000 and March of this year. Improved copper recoveries and slightly higher head grades brought Cayeli’s copper production to 10,700 tonnes, up from 9,400 in the comparable period last year. Zinc production fell slightly, to 8,000 tonnes, owing to lower head grades.

Gold grades at the Troilus mine in north-central Quebec were significantly higher than in last year’s quarter, and the operation produced 37,700 oz. gold, up from 27,200 oz. Troilus has produced 72,700 oz. gold so far in 2000, and its cash operating cost has fallen to US$242 per oz. from US$256 in the first half of 2001.

Inmet also received a $8-million dividend from its 18% interest in the Ok Tedi copper-gold mine in Papua New Guinea. Dividends from Ok Tedi are no longer being counted in Inmet’s earnings, and are treated as a return of capital.