Mazarin shareholders approved the move at a meeting in mid-December 2003, with each shareholder receiving one Sequoia share for every Mazarin share held.
With Sequoia beginning trading on Dec. 30, Mazarin shares plummeted to around 10 from 43, while Sequoia shares oscilatted between 30 and 70 before settling at around 60. At presstime, Mazarin was trading at 10 whereas Sequoia had slipped to 48.5.
“Sequoia can be defined as a natural resource company whose mission will be to develop metals and industrial minerals in order to supply products to manufacturers throughout the world,” says Sequoia President Jacques Bonneau. “The company aims to become a leader in this sector in both Quebec and North America.”
Sequoia’s flagship asset is its 50% stake in the 3,400-tonne-per-day Niobec niobium mine in Quebec’s Lac Saint-Jean region. Mazarin bought its stake from Teck Cominco in March 2001 and now acts as operator while equal partner
In 2002, the Niobec mine earned US$15.8 million on total sales of US$46 million, up from a profit of US$11.6 million on sales of US$37 million a year earlier.
The mine started up 26 years ago and is expected to operate for at least 18 more at current mining rates.
Sequoia’s dolomite assets are held by the wholly owned subsidiary Dolomex, which exploits a high-purity dolomite deposit near Portage-du-Fort, 100 km west of Ottawa.
The company’s graphite business centres around the exceptional Lac Knife graphite deposit, near Fermont, Que. There, Sequoia is partnered with U.S.-based
For 2003, Sequoia is expected to break even on revenue of almost $39 million.
The company’s board of directors consists of Bonneau, Chairman Robert Dutil, Franois Amyot, Andr Fortier, Yves Harvey, Robert Normand and Pierre Viger.
Officers include: Pierre Labbe, chief financial officer; Franois Goyette, general manager of the Dolomex division; Christian Pichette, manager of the Niobec mining and metallurgical complex; and Mario Simard, corporate comptroller.
Sequoia has 273 employees in total.
Mazarin’s new president and chairman is John LeBoutillier, and directors include Clment Godbout and Grard Potvin.
Mazarin’s remaining asset consists of a 54.6% interest in
In 2002, Asbestos lost $3.3 million on revenue of $162,000, compared with a loss of $984,000 on revenue of $37,000 during the 9-month fiscal year ended Dec. 31, 2001.
Asbestos closed out 2002 with $13.6 million in assets and $27 million in liabilities, including $24 million in notes owed to parent company Mazarin.
In May, in preparation for the Sequoia spinoff, Mazarin sold a minor calcium-aluminate division in Quebec.
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