A one-time gain of $62.7 million from the sale of coal assets enabled Westmin Resources (WMI-T) to post net income of $21.3 million for 1996 on revenue of $100.8 million.
By comparison, the company earned $19.9 million on revenue of $110.7 million in 1995.
The decrease in revenue was largely due to weak copper prices and lower production from the Myra Falls copper-zinc mine on Vancouver Island, as well as the closure of the Premier gold project near Stewart, B.C.
At Myra Falls, Westmin processed 3,633 tonnes per day during the fourth quarter at head grades of 1.8% copper and 4.3% zinc. This compares with 3,406 tonnes per day at 1.5% copper and 5.3% zinc during the first nine months of 1996.
More than 18% of the company’s ore was produced from the high-grade Battle zone, compared with 4.5% in the previous year. Development work also proceeded on the Gap zone, where grades are also high, and diamond drilling got under way on the western extension of the Trumpeter zone.
Exploration spending more than doubled in 1996, rising to $5.9 million from $2.5 million in the previous year. The increase reflects increased activity at the Wolverine massive-sulphide project in the Yukon.
Westmin recently announced its intention to sell the Premier project, where reserves stand at 386,000 tons grading 0.21 oz. gold and 1.6% zinc.
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