Novicourt takes a loss

Noranda‘s (NRD-T) base metal subsidiary Novicourt (NOV-T) continues to suffer the ills of low copper and zinc prices.

The company has posted a second-quarter loss of $130,000 (or nil per share) on revenue of $15.2 million, compared with year-ago net earnings of $161,000 (nil per share) on $15.5 million. The company’s operating loss climbed to just less than $1.3 million from the year-ago $990,000. Cash flow from operations, before changes in working capital, was $2.4 million, down from $3.1 million in the second quarter of 2001.

For the first six months of 2001, earnings came to $1.1 million (3 per share), compared with the year-earlier profit of $2 million (a nickel per share). Revenue was marginally lower at $33.2 million.

During the second quarter, Novicourt’s 45% share of production from the Louvicourt mine, near Val d’Or, Que., came to 4,609 tonnes copper metal (5,141 tonnes a year earlier), 1,899 tonnes zinc (944 tonnes), 2,595 oz. gold (2,898 oz.), and 59,000 oz. silver (60,000 oz.). Higher zinc grades helped to partially offset lower copper grades. The quarter saw average copper head grades fall to 2.9% from 3.2%, while zinc grades doubled to 1.6%.

For the half-year, Novicourt’s haul came to 9,802 tonnes copper, 3,668 tonnes zinc, 5,804 oz. gold and 127,000 oz. silver — all less, save for zinc, than year-ago levels.

During the second quarter, copper and zinc market prices averaged US73 and US35 per lb., respectively, compared with US75 and US43, respectively in 2001. For the six-month periods prices were US72 and US36 per lb., off from US77 and US44 during the first half of 2001.

Mining schedules at Louvicourt have been adjusted since a caving event involving about 100,000 tonnes of rock and backfill in one of the active stoping areas.

Louvicourt is held 45% by Novicourt, 30% by operator Aur Resources(AUR-T) and 25% by Teck Cominco (TEK-T).

At the end of 2001, Novicourt had $49 million in cash, up slightly from the end of 2001.