Copper price drags down Novicourt

Lower copper prices took a bite out of the first-quarter revenues of Novicourt (NOV-T), sending the base metal miner into the red.

For the first three months of 1998, Novicourt, 61% owned by Noranda (NOR-T), reported a loss of $273,000 (or less than 1cents per share) on revenue of $10.3 million, compared with earnings of $912,000 (2cents per share) on revenue of $15.5 million for the corresponding period of last year. During the quarter, the copper price averaged US77cents, compared with US$1.10 for the first three months of 1997.

Novicourt, which has a 45% stake in the Louvicourt copper-zinc-gold mine near Val d’Or, Que., says daily throughput from the mine averaged 4,334 tonnes grading 3.2% copper during the quarter, up slightly from the previous year. Aur Resources (AUR-T) has a 30% interest in the mine, while Teck (TEK-T) holds the remaining 25%.

Novicourt nearly doubled quarterly exploration expenditures, to $369,000 from $195,000 a year earlier, at its Louvicourt, Louvex and Bonnefond properties. All three are in the Val d’Or area. Novicourt’s cash on hand declined from $8 million at the end of 1997 to $6.8 million on March 31. A dividend of 10cents per share is payable to shareholders of record as of May 25.