Falconbridge Ltd. has reported consolidated earnings of $73.4 million (34 cents per common share) for 2002, compared with earnings of $16.0 million (2 cents per common share) for 2001.
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Earnings of $33.1 million (17 cents per common share) were reported for the fourth quarter 2002, compared with a loss of $20.5 million (a loss of 13 cents per common share) for the fourth quarter 2001.
Falconbridge CEO Aaron Regent said, Â?WeÂ?ve benefited this quarter from an overall improvement in our production performance and from higher nickel prices. We expect to maintain this momentum throughout 2003, as nickel prices are forecast to remain buoyant and copper prices are positioned to improve.Â?
Operating income during 2002 increased by $110.6 million to $136.7 million from $26.1 million for 2001. Revenues for the year ended Dec. 31, increased by $255.8 million to $2,394 million. The increased revenues result from higher average realized prices for nickel and copper offset by lower zinc and cobalt prices; higher sales volumes of nickel, copper, zinc and cobalt; and, a more favourable exchange rate in 2002 relative to 2001. Lower deliveries and prices of platinum and palladium also negatively impacted the results. Cash flow from operations was $341.4 million, down from $354.0 million in 2001.
Fourth quarter operating income of $54.9 million compared with an operating loss of $28.1 million in the fourth quarter of 2001. Fourth quarter consolidated revenues of $695.1 million compared with $513.7 million for the same period of 2001. Both increases reflect higher average realized prices for nickel and copper, which rose 39 per cent and 11 per cent respectively from the same period last year, and higher sales volumes of nickel, copper and zinc. A higher average realized foreign exchange rate contributed to higher revenues relative to 2001.
During the quarter, cash flow from operations improved to $120.8 million from $91.7 million for the same period of 2001.
During the quarter, refined nickel production totaled 27,400 tonnes compared with 22,300 tonnes a year ago. Due to significantly improved nickel prices, operating income for the quarter increased to $50.2 million from an operating loss of $13.1 million a year ago. For the year, FalconbridgeÂ?s refined nickel production totalled 91,800 tonnes as compared with 89,900 tonnes in 2001.
Production from the Sudbury mines was essentially on target in the quarter but lower than in the corresponding period of 2001 due to lower mine tonnage and grades. For the year, nickel in concentrate production increased from 25,200 tonnes in 2001 to 27,800 tonnes. Nickel in concentrate production in 2003 is planned at 26,500 tonnes.
During the last quarter, the Sudbury smelter produced record amounts of nickel and copper in matte. The smelter effectively operated at a capacity rate of 72,000 tonnes per year of nickel in matte, compared with the previous capacity estimate of 65,000 tonnes per year.
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