Pine Point reports profit but proceeding with closure

Somewhat ironically, Pine Point Mines reports that in 1986 the company had unaudited net earnings of $2 million, compared with a net loss from operations in the previous year of $2.2 million, before writedowns of assets and provision for closure costs amounting to $42.6 million.

The irony comes from the fact that the company now plans (N.M., Jan 26/87) to stop mining by mid- summer this year and to cease milling operations by year-end, at its Pine Point, N.W.T. zinc-lead mine.

Net earnings for the fourth quarter of 1986 were $6.6 million, on sales of $27 million, against a net loss from operations of $6.2 million on sales of $17.8 million in fourth-quarter 1985.

Pine Point says the improved results for the latest quarter reflected higher sales volumes and metal prices, along with significantly lower unit costs per ton of concentrate sold, compared with the similar 1985 period.

For full-year 1986, revenue from sales amounted to $96.7 million, compared with $110.1 million in the previous year. The quantity of zinc concentrate sold was 261,700 tons, (285,000), and of lead concentrate sold, 156,100 tons, (76,500).

The company says the improved 1986 earnings were achieved under the accelerated production plan adopted in December, 1985, calling for higher ore grades, lower strip ratios and significantly higher operating rates.

Pine Point says it plans to mill the ore remaining in reserves by the end of this year. This is expected to generate 485,000 tons of zinc concentrate and 135,000 tons of lead concentrate.

Sales of concentrates are expected to continue into 1990.