This article is from page 10 of the 2014-04-08 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 10 JPG
CLARE drill makers Mincon made a record profit of € 15 million last year, despite a general slowdown in the international mining sector. The Shannon-based company last week posted operational profits in excess of € 15 million for 2013, despite a sizable shrinkage in their overall sales.
The company, who famously played a key role in a mission to save a large group of Chilean miners trapped un derground for 69 days in 2010, saw their overall sales drop from € 63 million in 2012 to € 52 million last year. Despite the reduction in overall sales, Mincon managed to raise their overall profits by nearly 20 per cent over the last 12 months.
The company’s increased profits came against the background of a shrinking global mining market, with the price of precious metals continuing to decline in 2014. Mincon’s yearly sales were also hot in 2013 through by currency fluctuations in some of its key markets, particularly in South Africa and Australia.
Indeed, according to the company’s accounts, this currency fluctuation cost the company € 1.3 million in profits last year. The company determines that the profit increase has been brought about by increasing its share of the global rock-drilling products markets, which generates higher margins than what it can earn from the sale of third-party products.
Earlier this year, the company’s two biggest shareholders gave employees € 1.2 million from their own private funds to reward them for their hard work over the years. Company founder Paddy Purcell and Kevin Barry initiated the employee recognition plan, which excluded all members of senior management. The money was paid to Mincon’s 140 eligible employees across the group and was based on years of service with a payment of € 1,000 per staff member per year of service.
The company was founded in 1977 and listed on the Dublin and London stock exchanges late last year. Many of the company’s Shannon based employees have been there for a number of decades.