PT Inco?s Q2 earnings soars on strong nickel prices
Friday, July 26 2002 - 12:01 AM WIB
Net earnings in the six months ended June 30, 2002 were $12.8 million ($0.05 per share) compared to $16.3 million ($0.07 per share) in the corresponding period of 2001.
"We are encouraged by increasing nickel prices in the second quarter and by our progress in meeting operational objectives like energy cost reduction and cash generation for capital projects, all while meeting our debt servicing obligations," said Edward W. Hodkin, president and CEO.
The Company's realized price for nickel in matte averaged $5,244 per tonne ($2.38 per pound) in the second quarter of 2002, compared with $5,139 per tonne ($2.33 per pound) in the second quarter of 2001. In the 2002 first half, the Company's realized price for nickel in matte averaged $4,851 per tonne ($2.20 per pound), compared with $5,292 per tonne ($2.40 per pound) in the 2001 first half.
Production of nickel in matte in the second quarter of 2002 was 15,700 tonnes (34.6 million pounds), the same as in the corresponding 2001 period. Production of nickel in matte in the first half of 2002 was 31,400 tonnes (69.3 million pounds), compared with 30,900 tonnes (68.1 million pounds) in the prior year period.
?Second quarter production was effectively flat year-over-year and slightly less than plan due primarily to lower nickel ore grades. Consequently, we expect to produce 130 million pounds of nickel in matte in 2002, below our original objective," Hodkin said.
Unit cash cost of production increased by 11.7 percent in the second quarter of 2002 over the corresponding period of 2001. The Company committed about $14.0 million in 2002 -- including incurring $11.4 million in the first six months -- to enhance ore supply through two major stripping contracts, as well as extensive drilling and test pit programs.(alex)