Novicourt’s earnings fall

Noranda (NRD-T) subsidiary Novicourt (NOV-T) posted lower net earnings of $600,000 (or 2 per share) for the fourth quarter of 2001.

During the fourth quarter of 2000, the company earned $4.2 million (10 per share). Revenue between the two periods slipped to $18.6 million from $20.8 million. Cash flow from operations, before changes in operating working capital, were $2.7 million, down from $6.9 million the year-ago period.

For all of 2001, earnings totalled $3.9 million (10 per share), compared with the year-ago $12.6 million (31 per share) in earnings. Revenue dropped to $72.3 million from $79.5 million. Similarly, cash flow slid to $14.5 million, well off the $27.8 million generated in 2000. The drop off in revenue is attributed to higher operating costs and lower revenues on lower metal prices and increased smelting, refining and transportation charges.

During the last three months of the year, the Louvicourt mine, near Val d’Or, Que., processed a total of 410,619 tonnes at an average rate of 4,463 tonnes per day, up from the 390,192 tonnes processed a year earlier. Novicourt’s 45% share of net production hit 5,562 tonnes of copper metal; 2,170 tonnes zinc; 3,601 oz. gold; plus 87,000 oz. of 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 those in 2000.

For all of 2001, the company share of Louvicourt production 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 from 12,671 oz., and its cut of silver production grew by about 5,000 oz. to 318,000 oz.

Copper grades during the fourth quarter and year were 3.2% and 3.4%, respectively, while zinc grades were 1.6% and 1.4%, respectively. During all of 2000, copper grades averaged 3.3% and zinc grades were 1.4%.

In March, Louvicourt was shutdown 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 on the survey includes diamond drilling on three anomalies.

Louvicourt is held 45%-owned Novicourt, 30% by operator Aur Resources (AUR-T) and 25% by Teck Cominco (TEK-T).

Noranda has a 62.1% stake in Novicourt.

At the end of the year, the company had $48.8 million in cash, up $5 million from the end of 2000.