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(AMM) Breakwater logs 4th-qtr. profit despite drop in sales

March 01, 2010 - 16:42 GMT Location: NEW YORK

KEYWORDS: Breakwater Resources , zinc , copper , mining

Base metals miner Breakwater Resources Ltd. swung to a profit of Canadian $5.4 million ($5.1 million) in the fourth quarter of last year, in contrast to a net loss of C$53.5 million in the same three-month span a year earlier, despite gross sales that fell 50.3 percent to C$49.7 million ($47.6 million) from C$100.1 million.

With around C$40 million in debt and C$20 million in cash at the start of 2009, Breakwater was struggling to meet its debt obligations amid sinking zinc prices and a dire economic outlook, David Petroff, president and chief executive officer, said in a recent conference call.

"Throughout 2009 management tenaciously focused on cost containment" as high-cost zinc-copper operations at Langlois Mine in Quebec were shuttered, capital expenditures were cut and...

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