Cominco earnings hit by dip in metal prices

For the third quarter, Cominco (CLT-T) reports earnings of $5.2 million (or 6 cents per share) on sales of $448 million, compared with $22 million (25 cents per share) on sales of $417 million in the same period of 1995.

Earnings were affected by lower copper and nickel prices, a decrease in production volume at the Highland Valley copper mine in British Columbia, and the absence of sales from the Snip gold mine, in the same province, which was sold to Prime Resources Group in April.

For the first nine months of 1996, earnings amounted to $53 million (60 cents per share) on sales of $1.3 billion, compared with $66 million (78 cents per share) on $1.1 billion for the same period a year ago.

The after-tax effect of selling its interest in the Snip mine and the Brilliant Dam boosted earnings for the nine months ended Sept. 30 to $138 million ($1.61 per share).

Cash from operations amounted to $35 million during the quarter, compared with $59 million in the same period in 1995. For the nine months, cash from operations totalled $148 million, compared with $185 million for the comparable period last year.

Costs incurred by exploration, research and development totalled $22 million during the third quarter — a 34% increase from the same period in 1995.

A drill program at the Red Dog mine in Alaska intersected 110 ft. from a depth of 725-835 ft. grading 20% zinc, 4% lead and 3 oz. silver per tonne in hole 635.

The hole was drilled 400 ft. from previously reported hole 483, which intersected 190 ft. grading 12% zinc, 4% lead and 2 oz. silver.

The new zone is only partially delineated, and further drilling is planned for 1997. The Aqqaluk deposit was last estimated to contain an inferred resource of 83.8 million tons grading 13.7% zinc, 3.6% lead and 1.93 oz.

silver.

At the beginning of the year, reserves in the main open-pit deposit at Red Dog stood at 57.5 million tons grading 19.5% zinc, 5.3% lead and 2.92 oz.

silver.