Pre-tax profits at Tara Mines firm fall

Higher operating costs resulted in pre-tax profits at the firm that operates Tara Mines last year decreasing by 10% to €28m, new figures show.

The mine is Europe’s largest and the world’s fifth largest zinc mine and employs 714 people.

Filings just lodged with the Companies Office show revenues at the Swedish-owned Tara Mines Holdings Ltd and subsidiaries increased by 1% from €187.9m to €190m in the 12 months to the end of December last.

Production at the mine began in 1977 and it currently produces between 2.6m and 2.7m tonnes of ore per annum, resulting in 400 tonnes of zinc and lead concentrate.

The mine was purchased by Swedish company, Boliden in 2004.

The filings confirm that the firm paid a €20m dividend to its parent last year.

According to the directors’ report, the current reserves indicate a mining life through 2019.

The report states: “While the outlook for the mine’s future remains positive, current global economic and market conditions requires the group to remain focused on productivity improvements and control of its cost base.”

The directors state that metal prices for both zinc and lead remained stable throughout 2011.

Last year, Boliden secured planning permission from Meath County Council for an extension to the underground mining operations.

The profits also take account of €28.3m in the non-cash depreciation cost last year.

The numbers employed at the mine last year increased from 707 to 714, with staff costs for 2011 decreasing marginally from €58.47m to €58.1m.

This includes €414,000 paid to directors that includes pension contributions.

The figures show that at the end of December last, the company had shareholder funds totalling €129.9m.

The group’s cash last year reduced from €11.3m to €9.5m.

The filings confirm that the company’s operating profits decreased from €33.3m to €29.2m.

The figures show that the €146.7m of the company’s revenues were generated in EU countries with €43.3m generated in non-EU countries.

The accounts show that the group had incurred a €5.7m loss on its pension scheme last year following a €14.7m loss in 2010.

The figures show that the group’s cost of sales last year declined from €138.5m to €136.6m, with operating costs increasing from €18m to €22.2m.

The figures show that the company paid tax of €7.6m in its profits last year, leaving a post-tax profit of €20.7m.