Brighter picture for Campbell Res

A net income of $875,000 has been reported by Campbell Resources of Toront for the 6-month period ending Dec 31.

The company, which had a net loss of $16 million for fiscal 1986, has show a profit for three consecutive quarters.

Also brightening the company’s financial picture is news that Meston Lake Resources of Montreal, a firm now 65% owned by Campbell, has begun commercial production at its Joe Mann gold property, near Chibougamau, Que.

The company has entered into a limited partnership agreement with Bell Asbestos Mines, Asbestos Corp. and Lac d’Amiante du Quebec to form the world’s largest producer of asbestos fibre.

Start-up plans at the Joe Mann property involve the processing of 500 tons of ore a day, grading 0.15 oz gold per ton, and working up to 700 tons a day at 0.221 oz. Milling and processing will be done at the nearby Camchib Mines (a Campbell subsidiary) mill. Reserves at the Joe Mann site stand at 910,000 tons of mineable ore grading 0.221 oz gold and 0.3% copper.

In its 6-month report, Campbell lists as factors in its improved showing implementation of a new banking arrangement, continuation of the upgrading and expansion of the company`s Chibougamau, Que., gold operations, and formation of a limited partnership for asbestos production and sales.

The company is altering its fiscal period to a calendar-year basis, hence necessitating a report covering the last six months of 1986.

Campbell’s total debt stands at $17 million. The company notes that two years ago it had $95 million of bank obligations along with $67 million of debentures and preference shares.