Niobec purchase boosts Mazarin revenue

With the dust settling following its acquisition of a half-interest in the Niobec niobium mine in Quebec, industrial-products miner Mazarin (MAZ-T) is enjoying a modest return to profitability.

For the quarter ended June 30, Mazarin posted net earnings of $182,000 (1 per share) on revenues of $10.9 million, compared with a net loss of $358,000 (1 per share) on revenues of $2.4 million during the same period last year.

Most of the revenue boost comes from Mazarin’s $48-million purchase in April of Teck‘s (TEK-T) 50% stake in Niobec.

Mazarin has assumed operatorship of the mine and 50%-owner Cambior (CBJ-T) remains the marketer of any niobium produced.

With a major expansion completed at Niobec in late 2000, total niobium production during the recent quarter was 710 tonnes, a 33% increase from a year earlier.

Also showing up in Mazarin’s income statement were improvements in the company’s calcium aluminate and dolomite divisions, which saw a 33% increase in revenues during the past quarter.

The company’s stake in asbestos producer LAB Chrysotile, however, continued to be a drain. Mazarin’s share of that company’s losses amounted to $294,000 during the quarter, up from $44,000 a year ago.

After a flurry of major financings this past spring, Mazarin ended the period with 44.9 million outstanding shares, $22 million in current assets, $8.8 million in current liabilities and $41.3 million in long-term debt.

Not counted in these results was a subsequent, short-lived strike at the mine. This ended in early August.

Mazarin also announced a change in its financial year-end to Dec. 31.

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