Arcon posts return to profit

MINING company Arcon reported a return to profitability yesterday — the same day it recommended a takeover approach to shareholders.

The Tony O’Reilly-controlled firm, which operates the Galmoy zinc mine in Co Kilkenny, turned around a loss of €9.7 million in 2003 to register profits of €1.4m last year. Earnings before EBITDA came in at €9m after a loss of €4.5m in 2003.

Revenues soared 67% to €37.3m on the back of a 26% rise in zinc prices. But the firm missed out on the full benefit of higher zinc prices thanks to the slide in value of the dollar, the currency in which zinc prices are denominated. The stronger euro meant revenues were worth less in euro terms.