Cominco 1st-Quarter Profit Rises on Zinc Prices, Production
4/25/0 8:50 (New York)
Cominco 1st-Quarter Profit Rises on Zinc Prices, Production
Vancouver, April 25 (Bloomberg) -- Cominco Ltd. said its
first-quarter profit more than quadrupled, as the Canadian zinc
producer benefited from cost-cutting, increased production and
higher metal prices.
Net income rose to C$19.5 million ($13.20 million), or C$0.23
a share, from a year-earlier C$4.4 million, or C$0.05. Revenue
rose 9.3 percent to C$419 million from C$383.5 million.
The Vancouver-based company said earnings were boosted by
higher output at its Red Dog zinc mine. Sales of zinc concentrate
from Red Dog rose 44 percent to 229,400 tons from the 159,200 in
the year-earlier quarter.
The price Cominco received for a pound of zinc rose 13
percent to 51 cents from 45 cents in the year-earlier period.
``Red Dog's higher operating profit was due to the combined
impact of higher sales volumes, the favorable zinc price and lower
unit costs,'' the company said in a statement.
The price that Cominco received for a pound of copper rose 22
percent to 78 cents a pound from 64 cents.
Cominco shares rose C$0.10, or 0.4 percent, to C$23.75 in
Toronto yesterday.
Cominco is 40 percent-owned by Teck Corp., a Vancouver-based
miner.
--Pav Jordan in the Toronto newsroom (416) 364-7300, or
pjordan1@Bloomberg.net/mos |
