The halt of primary production at FNX Mining nickel mines during the last quarter resulted in after-tax writedowns on assets totalling $365-million, plunging the company heavily into the red for the year.
Toronto-based company, which operates nickel mines in Sudbury said the slump in the metal's spot price, which fell by almost half between September and the end of December as recession gripped hold forcing FNX to halt mining. The result is a one-time charges of $397-million ($4.68 a share) in the three-month period ended Dec. 31, compared with a profit of $32-million (38 cents) in the same quarter a year earlier.
Last quarter's writedowns dragged down FNX's full-year results, as the miner posted an annual loss of $388-million ($4.59).
The company laid off more than 300 workers in early December, citing low global nickel prices follwed by a suspension of production in certain mines. Mr. MacGibbon president of FNX, said the mines are on "on stand-by and could, at higher commodity prices, be quickly put back into production."
.jpeg;w=120;h=80;mode=crop)
