Better days for Teck, Cominco

Improved operating results from Cominco (TSE) helped boost the net earnings of Teck (TSE) during the latest quarter ended June 30.

Teck posted earnings of $13 million for the period, up from $3 million in the second quarter of 1993.

Cominco reported net earnings of $45.3 million, a significant improvement from the second quarter of 1993 when it posted a loss of $16.3 million. Included in this year’s second-quarter results were after-tax gains of $34 million from the sale of power expansion rights and $9.7 million from the dilution of its interest in Cominco Fertilizers.

The earnings of both companies also reflect the positive impact of higher prices for most metals combined with a weaker Canadian dollar. Operational improvements were also noted, particularly from Cominco’s Red Dog mine in Alaska. Shipments of Red Dog zinc concentrate this year are expected to total 519,000 tonnes, a 24% increase from the prior year.

Teck’s performance also reflects a higher gold price and a contribution from the Elkview coal mine in British Columbia, which did not operate in the first five months of 1993.

First-half gold production from the Hemlo mines in Ontario totaled 176,107 oz., compared with 188,956 oz. last year. Teck said the 6-month average production cost was US$173 per oz., compared with US$175 for the same period in 1993.