Arcon hopes to pay dividend by 2000

Arcon International expects to list its shares on New York's Nasdaq exchange within the next six weeks.

Speaking to shareholders at the company's annual general meeting yesterday, chief executive, Mr Tony O'Reilly jnr, also signalled that Arcon should be in a position to declare a dividend within two years and was optimistic that its share price would recover strongly.

Shareholders were assured that the board and management of Arcon were doing everything within their power to improve the value of their interests in the company. Chairman, Mr Brendan Gilmore, insisted that industrial relations problems, which culminated in a three-month strike at the Co Kilkenny-based mine, had been resolved. "The agreement will ensure stability for the future," he said.

He accepted that the dispute had had an impact on Arcon's share price, but also pointed to the continuing financial difficulties in the Far East, which were depressing commodity markets.

Zinc prices, one of the key determinants of Arcon's fortunes, were at the bottom quartile of world prices, but were forecast to recover later this year, he said, and should help the share price to make some progress.

Despite its difficulties over the past 12 months, Mr Gilmore said Arcon had managed clearly to define itself as a mining company. The industrial dispute will reduce production at Arcon this year.

However, its exploration programme will continue with new investments in Princess Resources Limited, a Vancouver-listed company with exploration interests in China and east Africa.