Production problems hurt Hudson Bay Mng.

Production problems at Hudson Bay Mining and Smelting’s (TSE) Flin Flon, Man., copper smelter and zinc plant have hit the company were it hurts most — on the bottom line.

Second-quarter net income of $2.6 million on revenues of $97.8 million was down substantially from the $7.4 million in net income and $95.5 million in revenues reported at the same time last year.

First-half net income was also down significantly to $11.5 million on revenues of $192.1 million compared to $22.1 million in net income an d revenues of $172.1 million in the first six months of 1987, the company said.

Hudson Bay Mining’s 1987 second quarter and first half results included a $3.5 million gain from the sale of an idle Yukon mining property.

The 1987 first half results also included gains of $11.4 million from the sale of an interest in a northern Manitoba nickel/copper property and $4.1 million from the recovery of deferred taxes resulting from a favorable ruling by Revenue Canada Taxation.

“The 1988 second quarter results reflected reduced copper and zinc production and sales volumes due to a planned copper smelter maintenance shutdown and temporary zinc production problems,” said President Lloyd Nilsen.

“The company’s second half results are expected to be hit by a continuing strike at the Ruttan copper/zinc mine at Leaf Rapids, Manitoba,” he said.