Higher gold, silver and copper prices helped offset lower zinc production allowing Breakwater Resources (BWR-T) to pop its head above water during the first three months of 2003.
The zinc producer’s net earnings rang in at $69,000 (or nil per share), compared with a year-ago net loss of $3.3 million (3 loss per share). Revenue tallied to $52.9 million, $11.6 million off of the previous year’s pace; lower sales volumes chipped in $9 million to the decrease. The company also says that the stronger Canadian dollar further reduced revenue by $3 million.
The quarter’s operating cash flow shrank to $400,000, compared with $4.1 million during the corressponding period of 2002. The loss from mining activities climbed by $2.2 million to $2.4 million.
First-quarter production of zinc-in-concentrate fell nearly 30% to 43,125 tonnes.The lower production level is attributed to the closure of the Nanisivik mine on Baffin Island, at the end of the third quarter of 2002. Total cash costs were unchanged at US31 per lb., minesite operating costs climbed US$1.23 to US27.84 per tonne milled.
The company’s copper production slipped marginally to 1,328 tonnes; silver output fell by 37% to 588,602 oz.; and gold was off 222 oz. at 7,252 oz. Conversely, lead production climbed 245 tonnes, to 3,935 tonnes.
On the sales side, Breakwater realized an average of US36 per lb. for its zinc, unchanged form a year earlier. Lead fetched US20 per lb., 9% less than the previous year. On the plus side copper realized US3 more at US76 per lb.; the average realized price for silver climbed 4% to US$4.68 per oz.; and gold jumped 26% to US$344.13 per oz.
At the end of March, Breakwater had $5.8 million in cash and equivalents; total debt was $70.1 million.
Be the first to comment on "Breakwater breaks even"