Speaking of base metals...
Teck Cominco reports record net earnings of $510 million for the fourth quarter and $1.3 billion for the year
VANCOUVER, Feb. 1, 2006 (Canada NewsWire via COMTEX) --
Don Lindsay, President and CEO said, "Net earnings in the fourth quarter were a record $510 million reflecting the company's earnings power in a favourable commodity price environment. The company's balance sheet at year end was the strongest ever with cash balances of $3.1 billion. In addition, construction of the company's newest operation, the Pogo gold mine in Alaska, is now substantially complete with the first gold pour expected shortly."
Highlights and Significant Items
- Unaudited net earnings were $510 million or $2.50 per share in the fourth quarter, compared with $285 million or $1.42 per share in the fourth quarter of 2004. The higher earnings were due mainly to significantly higher copper, zinc and coal prices. Earnings of $1.3 billion for the year were more than double the $617 million earned in 2004.
- Cash flow from operations, before changes to non-cash working capital items, was $576 million in the fourth quarter, up from $403 million in the fourth quarter of 2004. Cash flow from operations for the year was $1.7 billion compared with $1.1 billion in 2004.
- Average LME cash prices for copper and zinc in the fourth quarter were US$1.95 per pound and US$0.74 per pound respectively, up 39% and 45% from a year ago.
- Construction of the Pogo gold mine in Alaska was substantially complete at the end of 2005. Commercial production levels are expected to be reached in the second quarter of 2006.
- In November 2005, the company finalized agreement to acquire a 15% partnership interest in the Fort Hills Oil Sands project. Engineering and design work is underway, and a preliminary cost estimate is expected to be completed by the end of 2006.
- At December 31, 2005, the company had a cash balance of $3.1 billion and a long-term debt to debt-plus-equity ratio of 28%. The company's cash exceeded debt by $1.4 billion. |
