Novicourt takes hit

Third-quarter earnings of Novicourt (NOV-T) show little change from a year ago, though its 9-month statement is down $3.1 million from the first nine months of 1997.

Quarterly earnings amounted to $1.5 million (or 4 cents per share) on revenue of $12.8 million, compared with year-ago profits of $1.8 million (4 cents per share) on $14.9 million. Lower metal prices and zinc production were offset by higher copper production and the weak Canadian dollar, the company says.

Novicourt sold its share of copper production from the Louvicourt mine in Val d’Or, Que., for US75 cents per lb. in the recent quarter — down from US$1.03 a year ago. However, Novicourt’s hedging strategy proved profitable: the company made $1 million in the quarter, compared with a loss of $1.4 million in the third quarter of 1997.

The company’s share of metal production from its 45%-owned Louvicourt copper-zinc-gold mine included 6,308 tonnes of copper concentrate, 1,853 tonnes of zinc concentrate, 76,000 oz. silver and 3,199 oz. gold. For the first nine months of 1998, the company earned $2.7 million (7 cents per share) on revenue of $36 million, compared with $5.8 million (14 cents per share) on $48.5 million in the corresponding period last year.