Canadian mining stocks: Shipping delays hold back Breakwater’s results

Breakwater Resources, symbol BWR on Toronto, mainly produces zinc. The Canadian mining stocks operations include the Myra Falls mine in B.C., the Mochito mine in Honduras and the Toqui mine in Chile. Work is on schedule to restart the Langlois Mine in Quebec in the first quarter of 2012. We analyze Breakwater in Stock Pickers Digest, our newsletter for aggressive investing In the three months ended March 31, 2011, Breakwater earned $30.8 million, or $0.39 a share. Of this, $19.0 million, or $0.24 a share, was from an income-tax recovery. In the first quarter of 2010, the company earned $24.9 million, or $0.36 a share. The Canadian mining stock’s revenue fell 29.9%, to $76.2 million from $106.6 million. Delays in zinc shipments, unfavourable exchange rates and other operating problems held back results. That was partly offset by lower operating costs and higher metal prices. The shipping delays and operational issues have now been resolved. Breakwater holds cash of $116.5 million, or $1.47 a share, and has just $5.4 million of long-term debt. We updated our advice on Breakwater in our May 20, 2011 Stock Pickers Digest hotline, which you can immediately view when you take a 1-month free trial to Stock Pickers Digest. Click here to get started right away. (Note: If you are a current Stock Pickers Digest subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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