Nerco may sell minerals division

The Nerco Con mine at Yellowknife, N.W.T., could change hands if Nerco (NSYE) finds a buyer for its minerals division.

The diversified resource company recently announced it had retained J.P. Morgan, a financial consulting firm, to assist with the evaluation of “strategic alternatives” for its precious metals business, including the possible sale of the mineral subsidiary.

Nerco’s mineral segment reported first-quarter gold sales of 40,000 oz. and 1.2 million oz. silver, compared with 43,000 oz. gold and 1.1 million oz. silver in the year earlier period. The bulk of gold production comes from the Con mine which Nerco acquired from Cominco in 1986.

Operating income for the minerals segment increased US$900,000 to US$2.2 million because of increased silver margins and increased gains on asset dispositions.