Mazarin Mining posts first-quarter loss

Weak demand in Asia for asbestos has taken its toll on the bottom line of Mazarin Mining (MAZ-T).

For the first quarter ended June 30, the company recorded a net loss of $1.1 million (or 3 cents per share) on total revenue of $1.8 million, compared with earnings of $504,000 (2 cents per share) on $2.5 million for the corresponding period last year.

The loss was caused chiefly by a $1.25-million decline in Mazarin’s share of revenue from the LAB limited partnership, which suffered from reduced demand in Asia’s building sector. However, the firm’s decrease in asbestos revenue was compensated by a $789,000 increase in revenue generated by the other industrial minerals, namely dolomite and calcium aluminate.

Mazarin’s share of revenue from LAB for fiscal 1998 is expected to be about 26%, compared with 33% in fiscal 1997.

At the Dolomex operations in Portage-du-Fort, Que., first-quarter sales totaled $929,000, compared with $408,000 a year ago. Production of pelletized products rose to 3,319 tonnes, up from 1,183 tonnes in the first quarter of 1997. The company intends to break even at Dolomex by the end of the current fiscal year.