ARCON International Resources has announced its first profit, of £36,000, in the six months ended February 28th 1997. In a period prior to production from its Galmoy zinc/lead mine in Co Kilkenny. This compares with a loss of £145,000 in the comparable period last year.
The latest results reflect its interest in the producing Claymore and Singleton fields and buoyant oil prices which helped to generate good cash flow, Arcon said. Revenue grew from £746,000 to £933,000.
Chairman, Mr Brendan Gil more noted that progress continues with the evaluation of production feasibility on the Helvick oil field and the Ardmore gas field. The group generated earnings per share of 0.01p in the first six months compared with a loss of 0.05p.
It is focused on optimising its production rates at the Galmoy mine as construction works are virtually complete. Mr Tony O'Reilly, Jnr noted that Arcon has transformed itself from an exploration company to a mining company generating cash flow. Arcon has produced 22,000 tonnes of zinc concentrates with sales of 17,000 tonnes since operations commenced in March. Gross revenue has been around $15 million, he said. Arcon is very well placed to take advantage of the high zinc price and the strong dollar".
Arcon has debts of $60 million. The intention, Mr O'Reilly said, is to avail of the high zinc price and repay the debt. However, he stressed that the available cash flow will also be used to seek new investment opportunities. Asked to be more specific, Mr O'Reilly said the investment will be in base metal operations.
Chairman, Mr Brendan Gilmore noted that a two year £1.5 million exploration programme around Galmoy has led to the programme being continued to September 1998.
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