Net earnings for 1989 of $29.7 million (80 cents per share) were reported by Brunswick Mining & Smelting (TSE), compared with $31 million (87 cents per share) the previous year.
Value of mineral production during the year was $338.2 million, up from $327.4 million in 1988.
The Noranda-controlled company had disappointing fourth- quarter results. A net loss of $4.5 million (13 cents per share) was recorded for that quarter, on mineral production valued at $68.1 million.
The company blamed the quarterly loss on repairs and startup delays in the new, deep-ore handling facilities, together with mine sequencing problems, which restricted average mine production to 7,745 tonnes per day.
“Revenue from lead and silver in the reduced amount of lead concentrates was insufficient to cover high fixed costs and shutdown maintenance charges at the smelter/ fertilizer complex,” said the company. “Consequent smelter losses exceeded profit from zinc, bulk lead-zinc and copper concentrate production at the mine.”
Also, declining product prices and the rising cost of ammonia and phosphate rock hurt returns from the fertilizer plant operations.
The demand for zinc in the automotive, housing and construction industries dropped throughout the fourth quarter, bringing prices for the metal down. Overall, the company milled less ore and produced less zinc, lead and copper concentrate in 1989 at its New Brunswick operations than in the previous year. Silver output was also reduced.
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