Operating costs take toll on Novicourt

Noranda‘s (NRD-T) 62%-owned base metal subsidiary, Novicourt (NOV-T), turned in a subdued performance during the last three months of 2001.

The junior producer posted net earnings of $600,000 (or 2 per share) for the fourth quarter of 2001, compared with a profit of $4.2 million (10 per share) during the corresponding period in the previous year.

Revenue between the two periods slipped to $18.6 million from $20.8 million, and cash flow from operations, before changes in operating working capital, was $2.7 million, down from $6.9 million during the year-ago period.

For all of 2001, earnings totalled $3.9 million (10 per share), compared with the year-earlier profit of $12.6 million (31 per share). Revenue dropped to $72.3 million from $79.5 million between the two years.

Novicourt attributes the revenue drop to higher operating costs, lower metal prices, and increased charges for smelting, refining and transportation.

During the last three months of the year, the Louvicourt mine, near Val d’Or, Que., processed 410,619 tonnes, up from 390,192 in the fourth quarter of 2000.

Novicourt’s 45% share of net production consisted of 5,562 tonnes copper metal, 2,170 tonnes zinc, 3,601 oz. gold, and 87,000 oz. silver. A year earlier, Novicourt’s cut amounted to 5,771 tonnes copper, 1,726 tonnes zinc, 3,698 oz. gold, and 77,000 oz. silver. Average prices for copper and zinc during 2001 were off, compared with 2000 figures.

For all of 2001, the company’s share of production at Louvicourt was 22,479 tonnes copper, compared with 22,079 tonnes in 2000. Accountable zinc production was 6,842 tonnes, slightly lower than the 6,975 tonnes in 2000. Accountable gold ounces climbed to 13,538 oz. from 12,671 oz., whereas silver output grew by about 5,000 oz. to 318,000 oz.

In March, Louvicourt was closed for five days to allow for a three-dimensional seismic survey. The survey revealed several anomalies that may be caused by sulphide mineralization. Ongoing follow-up work on the survey will include diamond drilling into three anomalies.

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 $48.8 million in cash, up $5 million from the end of 2000.

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