Inco Ltd. incurred a loss of $14 million or nine cents per share in the second quarter of 2004.
The nickel giant reported Tuesday, adjusted net earnings of $156 million, or 82 cents per share for that period, compared to $69 million, or 77 cents per
share, during the same period in 2003.
Those earnings turn into a loss when a non-cash income tax benefit of $96 million, or 52 cents per share, unfavourable non-cash currency translation adjustments relating to changes in the Canadian-U.S. dollar exchange rate of $72 million, or 39 cents per share, and a strike by production and
maintenance employees at the company?s Ontario operations which cost $23 million, or 13 cents per share, are factored in.
?The second quarter of 2004 represented another strong quarter for our business as we met or exceeded our expectations for production, unit costs and
premiums, and we remained on track to hit our highest nickel production levels in nearly 30 years,? said Inco CEO Scott Hand.
?While nickel prices were volatile during the quarter, supply-demand fundamentals remain strong and we currently believe that the nickel market, although expected to continue to experience volatility, will remain robust into the foreseeable future.?
The company has made good progress on the Voisey?s Bay project, and has advanced its timetable by six months, he said.
The commissioning of the mine and concentrator may now begin in August 2005.
Nickel prices fell during the first two months of the quarter to a low of $4.98 per pound but rebounded $6.80 per pound.
Overall, Inco is predicting the world will need more nickel than it gets in 2004, with London Metal Exchange levels currently at their lowest since 1991.
Inco produced 131 million pounds of nickel during the second quarter of 2004. At that pace, the company will have its highest nickel output since 1974 this year.
Ontario operations accounted for 56 million pounds of that total.
(All figures are American dollars.)
