Looking over some more fourth quarter and year-end earnings results, I am beginning to think mining companies have a licence to print money. There is more than loose change in their pockets these days.
Vancouver-based TECK COMINCO reported unaudited record earnings for 2005 of $1.3 billion, more than double the $617 million earned in 2004. Net earnings for the fourth quarter of 2005 also set a record at $510 million, compared with $285 million for the same period a year earlier. The company had a comfortable $3.1-billion cash cushion at the end of December. The entire report is available at www.TeckCominco.com.
FORDING CANADIAN COAL TRUST of Calgary also reported a strong fourth quarter. Net income was $218 million in the quarter, up from $85 million a year earlier. Net income for 2005 was $834 million, compared with $243 million in 2004. Thanks to higher coal prices, revenue in 2005 was up 66% to $540 million over 2004. Additional details can be read at www.Fording.ca.
Toronto-based FALCONBRIDGE (soon to be part of Inco) reported 2005 net income of US$872 million, up 67% from the year before (US$521 million). For the fourth quarter alone, net earnings were US$280 million, compared with US$143 million for the same quarter in 2004. Revenues for the year were US$8.15 billion, up 20% from 2004 (US$6.76 billion). Higher production of copper and nickel plus continuing strong commodity prices contributed to the increases. More information is posted at www.Falconbridge.com.