Galmoy pre-tax profits fall by 40pc
Pre-tax profits at Galmoy Mines in north Kilkenny tumbled in 2012 as the operator stopped extracting zinc from the mine.
Accounts recently filed by Galmoy Mines Ltd with the Companies Office show that the firm sustained a 40pc drop in profits, after revenues fell 31pc to €19.9m in 2012.
The directors state that towards the end of the period, the company's ore extraction activities ceased and there was a final delivery of ore for processing at Lisheen Mines.
"The company continues to realise revenue in relation to the milling of ore by Lisheen Milling Ltd, from stock already mined, which is expected to continue throughout 2013," the report says. Rehabilitation works at the mine site continued through 2012 and are expected to conclude in 2014 with monitoring activities continuing thereafter to effect a wind-down of the mine.
The directors say parent company Lundin has committed to fund any excess costs arising to the extent necessary to effect an orderly wind-down.
The figures show accumulated profits at the end of December 2012 totalled €7.8m, with the firm's cash at hand and in bank declining from €8.1m to €4.3m.
A breakdown of the firm's costs show that €3.8m was spent on mine services and administrative expenses along with a restructuring charge of €191,000, and a €408,000 increase in site remediation.
Numbers employed declined from 49 to 30, with staff costs, reducing from €3.8m to €3.5m. A total of 26 staff were engaged in mine development and production along with four engaged in management and administration.
Staff costs include €2.65m in wages and salaries and a redundancy charge of €191,000.
The net book value of the assets had a net realisable value of €3.6m at the end of December 31, 2012. Site restoration activities commenced in 2009, with the firm incurring costs of €1.37m in the year to December 31, 2012. "The majority of the remaining works are expected to be completed in the next two years," the firm stated.