Pre-Tax losses at the mining company, Arcon International Resources, have increased to £8.2 million (€10.4 million) last year from £3.5 million (€4.4 million) in 1997, according to its preliminary results for year ended December 31st.
Losses rose sharply because of depressed zinc prices and a 14-week industrial dispute which halted production at its Galmoy mine, Co Kilkenny. The losses included a net interest charge of £4.1 million, compared to £3.8 million the year before.
Arcon's turnover decreased slightly from £13.1 million to £12.5 million, with operating losses rising to £2.4 million, compared to an operating profit of £474,000 the year before. Net debt at the company stood at £52 million at the end of the year.
The company's shares in London were down almost 15 per cent to 15p sterling yesterday, although they were down only marginally in Dublin.
Chief executive, Mr Tony O'Reilly jnr, told The Irish Times the 14-week dispute with SIPTU had distorted the figures significantly. He said despite this, net cash flow from operating activities was £2.25 million for the year.
He said the company's fortunes were tied into international zinc prices and had "suffered as a result". He added that prices now seemed to be "bottoming out" and should recover in the next few months, as the Asian economies recovered their position.
He said it had been a "very difficult year" for the company, but he was satisfied that operating costs had been kept down and Arcon could take advantage of any zinc price increases.
The company managed to process 370,000 tonnes of ore and ship approximately 85,000 tonnes of zinc and lead concentrates to European customers. The life of the Galmoy mine now exceeds 10 million tonnes, said Mr O'Reilly.
The gross value for metal sold was £23.2 million, which fell to £12.6 million when smelting charges were added.
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