PT Inco reports sharp increase in Q1 net earnings
Thursday, April 17 2003 - 11:33 PM WIB
?Our average realized price increased by 15 per cent over the fourth quarter of last year, which enhanced our earnings,? said Edward W. Hodkin, President and CEO. ?We improved mining and blending practices to raise ore grade to 1.92 percent, well above the 1.69 percent level of the 2002 first quarter. Although the high grades attained in the first quarter may not be sustainable with four furnaces on line, we remain confident that we will reach our target of 1.77 percent nickel ore grade through the balance of 2003,? he noted.
Hodkin also stated that, assuming rainfall is sufficient to enable the Company to maintain its current level of hydroelectric power, the company expects to achieve planned 2003 production of 140 million pounds of nickel in matte. He added that debt reduction remains an important priority of the company, which had lowered its long-term debt to $230.8 million at March 31.
The company?s realized price for nickel in matte averaged $6,208 per tonne ($2.82 per pound) in the first quarter of 2003, compared with $4,409 per tonne ($2.00 per pound) in the corresponding 2002 period and $5,401 per tonne ($2.45 per pound) in the 2002 fourth quarter.
Production of nickel in matte for the first quarter of 2003 was 14,500 tonnes (32.0 million pounds), compared with 15,700 tonnes (34.6 million pounds) for the corresponding 2002 period. Commenting on first quarter production in 2003, Hodkin said: ?As planned, Electric Furnace No.3 was back to full power on February 22, 2003, following a scheduled rebuild that was completed on time and under budget. However, our production was marginally affected by unscheduled shutdowns of our Balambano hydroelectric power generating facility to replace generator bearings.?
Cash provided by operating activities, but before capital expenditures, was $62.4 million in the 2003 first quarter, compared with $15.5 million in the first quarter of 2002. Capital expenditures were $11.6 million in the first quarter of 2003, up from the $1.1 million in the corresponding 2002 period, reflecting the cost of the furnace rebuild. After repaying debt of $38.5 million and interest of $4.3 million, a net cash inflow of $8.1 million increased the Company?s cash balance to $30.6 million at the end of the first quarter of 2003.
Subsequent to the end of the first quarter, the shareholders of PT Inco approved a final dividend for 2002 of $0.01 per share, payable on May 19, 2003 to shareholders of record on May 2, 2003. (alex)
