Ivernia West has reported a net loss of $5.9 million (€6.48 million) for the three months to the end of June, bringing its first half loss to $11.6 million.

The second-quarter loss of five US cents per share compares with a loss of one US cent per share for the same period last year.

Initial operating losses from the Lisheen mine - where commercial production started in January - along with higher interest charges accounted for the losses, according to the company.

Lower zinc prices accounted for $2.1 million of the $3 million second quarter loss on mining operations, the company said.

The zinc metal price fell to a 10-year low towards the end of the quarter.

Ivernia has estimated that every 10 cent change in the price of zinc results in a change of approximately $9 million in its operating income.

At the end of June, the company had a working capital deficiency of $19.7 million, up from $9.4 million at the end of December 2000.

Performance at the Lisheen Mine in Tipperary improved significantly during the quarter, according to Ivernia.

However, Ivernia said that current quarter mine production has fallen "below plan" because poor ground requiring additional remedial work delayed production.

During the quarter, Ivernia spent about $200,000 on the Magellan Project, to complete a drilling programme. Ivernia has a 91.6 per cent interest in the project.