FALCONBRIDGE <FALCF.O> SEES IMPROVED RESULTS
Falconbridge Ltd said it expected
results for the rest of 1987 to improve from the earlier
reported first quarter operating loss of 15.4 mln dlrs.
    Chief executive William James told reporters after the
annual meeting that "I would hope that the loss for the year
certainly wouldn't be a high as the loss for the first quarter.
In other words we are going to make money from here on in."
    Falconbridge last year made a first quarter operating loss
of 17.1 mln dlrs and a full-year operating loss of 15.5 mln
dlrs.
    James said currency losses tied to the stronger Canadian
dollar resulted for about eight mln dlrs of the first quarter
operating loss. Falconbridge records its cash and accounts
receivable in U.S. dollars, with the Canadian dollar equivalent
decreasing as the U.S. dollar falls.
    He said the first quarter loss also stemmed from weaker
nickel and ferronickel prices and lower production at the
company's Sudbury, Ontario nickel operations and at some Kidd
Creek operations. Falconbridge anticipates higher production
through the rest of the year and higher average prices this
year for precious metals, James added, without elaborating.
    Falconbridge has no immediate plans for further
divestments, James said in reply to reporters' inquiries. The
company sold several mining subsidiaries last year to help pay
down debt from its January, 1986 acquisition of Kidd Creek
Mines Ltd from Canada Development Corp <CDC.TO>.
    He said Falconbridge's debt now totaled about one billion
dlrs, down from 1.37 billion dlrs at the time of the Kidd Creek
buy.
    James said he could not assess the impact of Amoco Corp
<AN>'s proposed acquisition of Dome Petroleum Ltd <DMP>. Dome's
23 pct-owned Dome Mines Ltd <DM> owns 21 pct of Falconbridge.
    Asked by reporters if Falconbridge preferred competing Dome
bidder, Calgary, Alberta-based TransCanada PipeLines Ltd to
Chicago-based Amoco, James replied, "It makes no difference to
me...whoever takes it over is fine by us."
    He told shareholders that Falconbridges' planned capital
expenditures this year would decline to 134 mln dlrs from 160
mln dlrs last year.
 Reuter
