Exploration company Arcon moved back into the black in 2004 reporting a €1.4 million profit compared with losses of €9.7 million in the previous year.
The company, which is 72 per cent owned by Sir Anthony O'Reilly and his family, is set to merge with the Canadian-based Lundin Mining Corporation in a $123 million (€94 million) deal.
Yesterday Lundin said it had completed its audit of Arcon's Galmoy mine in Co Kilkenny.
A committee of Arcon's independent directors recommended acceptance of the offer and Lundin said it expects to close the deal in April. Speaking in Dublin, Lundin's vice-president, Karl-Exel Waplan, said the group would be focusing on further opportunities close to the Galmoy mine in the next couple of years and was confident there would be opportunities to invest in Ireland in the future.
Under the terms of the deal Lundin will issue $63 million in cash and 5.6 million shares. The offer is equivalent to 53.8 cent per Arcon ordinary share. Commenting on its results, Arcon chief executive Peter Kidney said the company had continued to make progress and was pleased with its return to profitability.
Arcon's turnover was up 67 per cent to €37.3 million. Mr Kidney said Arcon was focusing on further improvements in production volumes at Galmoy while continuing with its exploration programme in the Galmoy area.
Lundin has emphasised the attractiveness of the Arcon deal, stating that it offers good potential to extend the reserve life at its existing mines through increased exploration.
On completion of the Arcon deal Lundin will become Europe's joint second-largest zinc producer, behind Boliden. It will also become the world's 12th largest zinc producer.
