Corona's 2004 profit drops to US$2.85mn, output falls

Peruvian polymetallic miner Corona saw its net profit fall 63% to 9.3mn soles (US$2.85mn) in 2004 due to a poor fourth quarter, lower production and costs associated with the splitting off of its Morococha polymetallic unit in central Peru. Mineral sales dropped 40.3% to 85.4mn soles (US$26.2mn) last year, mainly due to a drop in metal production from 55,300t/m to 20,000t/m after it transferred Morococha to a new company Argentum on March 1, 2004, subsequently acquired by Canada's Pan American Silver. Revenue from mineral sales was also impacted by a drop of 81.8% to 8.83mn soles (US$2.71mn) in 4Q04 because the company "did not dispatch a large part" of production, said Corona in a statement posted on securities regulator Conasev's website. As a result, Corona posted a Q4 loss of 1.81mn soles (US$555,000) against a profit of 126,000 soles in same-quarter 2003, the statement shows. Yauricocha polymetallic mine, Corona's only current operation, was expected to increase production to 25,000t/m as of January this year and to 35,000t/m by October. "With this increase we expect to reduce the mining and administrative costs and if current metal prices are maintained, the economic results should improve significantly in the future," said Corona. The mine in central Peru's Junin department was acquired by auction from the state in 2002. It produced 14,952t of zinc, 1,046t of copper, 996t of lead and 20kg of silver last year, according to the country's ministry of energy and mines (MEM).