Pre-tax profits at Lisheen miners up 60%

Pre-tax profits at the company that processes lead and zinc from the Lisheen mine in Co Tipperary increased by nearly 60% last year, to $75.6m (€58m).

The increase at Lisheen Milling Ltd, before a 2010 reversal of impairment is taken into account, followed revenues at the firm rising by 54.5% from $264.9m to $409.5m in the 15 months to the end of March this year.

The mine has been in production since 1999 and produces an average 165,000 tonnes of zinc per year and 200 tonnes of lead, with production last year on a par with 2010.

In that year, Indian company Vedanta Resources purchased the Tipperary mine, along with other bigger mines in South Africa and Namibia, from previous owners Anglo American Zinc as part of a €1.34bn deal, which estimated Lisheen’s value at $308m (€242m).

According to documents Vedanta Resources plc lodged with the Environmental Protection Agency, Lisheen mine is expected to close in late 2013 or early 2014.

Last year, Lisheen Milling Ltd paid four separate dividend payments totalling $84.2m to its parent.

According to the directors’ report lodged with the Companies Office: “The company performed strongly in the 15 months, a period in which the market experienced some volatility in commodity prices towards the second half of 2011 and a partial recovery in the first quarter of 2012.”

The report continues: “Demand growth continued to be driven by the emerging economies, particularly China and India, and also by tentative recoveries in the developed world.

“Our continued focus on operational excellence further strengthened our financial performance and we have continued to deliver on our specific strategic objectives.”

The firm’s operating profit, before the $35m reversal of impairment is taken into account, rose by 60% last year from $48m to $76.8m.