Interest rate drop boosts Falco

Lower metal prices and reduced sales from Falconbridge’s Kidd Creek zinc-copper-silver mine combined to diminish the company’s first-quarter operating income by $5.5 million. Falconbridge is a wholly owned subsidiary of Noranda (TSE) and Trelleborg AB of Sweden.

But the decline in operating earnings was more than offset by lower interest rates on the company’s debt and slightly lower tax payments. Net income, after a $25-million reduction in interest charges, reached $24.5 million compared with $2.3 million for the same period in 1990.

The company sold 14,900 tonnes nickel, 8,000 tonnes ferronickel, 45,500 tonnes copper, 34,600 tonnes zinc and 14,400 tonnes zinc concentrate in the first three months of the year. Falconbridge 3 months ended Mar. 31 1991 1990 Revenue $473,000 $501,000 Net earnings 24,500 2,300