Vancouver — Robust commodity prices have enabled
The major earned $120 million (or 62 per share) in the 3-month period ended Sept. 30, compared with $16 million (8 per share) in the third quarter of 2003.
Prices for copper, zinc, lead, coal and molybdenum were all higher than they were a year earlier, though the stronger Canadian dollar offset their benefit to some extent.
Cash flow from operations in the recent quarter totalled $337 million, compared with $86 million a year earlier. Also, Teck Cominco reduced its net debt by $203 million, to $538 million. At the end of the quarter, the company had a cash balance of $429 million.
The Highland Valley copper-molybdenum mine in south-central British Columbia enoyed an operating profit of $125 million, up from $11 million in the third quarter of 2003. Copper production of 43,200 tonnes was little-changed from a year earlier, whereas molybdenum output grew by 25% to 2.5 million lbs., largely as a result of processing improvements.
The Red Dog lead-zinc mine in Alaska reported a $59-million operating profit, up from $6 million a year earlier. The 152,800 tonnes zinc and 32,800 tonnes lead produced are little-changed from last year.
Profits at the Trail smelter and refinery, in British Columbia, totalled $40 million. The figure includes both the metals operation and electrical power sales. Only $5 million was realized in the corresponding quarter of 2003. Trail produced a record 76,600 tonnes zinc in the recent period, plus 21,200 tonnes lead.
At Teck Cominco’s 38%-owned Elk Valley Coal Partnership, centred in British Columbia and Alberta, attributable earnings were $39 million, up from $24 million a year earlier. The amount of coal produced exceeded 5.7 million tonnes, compared with 4.8 million tonnes. Strong demand from steel mills and refineries worldwide has kept prices buoyant.
Farther afield, the company’s 22.5% interest in the Antamina zinc-copper mine in Peru turned a $59-million operating profit, compared with only $7 million a year earlier. The mine produced 91,900 tonnes copper and 45,000 tonnes zinc in the recent period.
Meanwhile, the major took an after-tax hit of $52 million on its investment in Australian gold producer
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