Lundin swings back into black

VANCOUVER (miningweekly.com) – Higher metals prices, higher sales volumes and lower operating costs have helped push Canadian diversified miner Lundin Mining back into the black, according to the company’s financial report for the three months ended June 30, published Wednesday.

Net earnings from continuing operations for the quarter totalled $64-million, compared with a net loss of $16.5-million in the second quarter of the prior year. Net earnings for the period totalled $85-million, or $0.10 a share, compared with a net loss of $787.9-million, or $1.10 a share.

Operating earnings for the quarter were $236.2-million, an increase of $101.7-million compared with the second-quarter loss in 2016 of $134.5-million.

Sales for the quarter totalled $454.7-million, an increase of $112.4-million compared with the second quarter of 2016’s loss of $342.3-million.

Overall output for the second quarter was consistent with expectations, with excellent copper production from Candelaria in the quarter making up for lower production from Neves-Corvo, the company stated.

Copper output rose 17% year-on-year to 56 448 t, with zinc output flat at 36 216 t and nickel output down 14% at 5 822 t.

Cash costs for the quarter were consistent with or lower than those realised in the second quarter of 2016, benefiting from higher by-product metal prices.

Lundin had a net cash position, at June 30, of $1.05-billion, compared with a net debt position of $284.1-million at December 31, 2016, and $71.3-million at March 31.

Lundin tightened its copper production guidance for 2017 to between 203 000 t and 214 000 t, from 202 000 t to 216 000 t previously. Nickel output is expected to improve to between 20 000 t and 23 000 t from 17 000 t to 20 000 t previously, with C1 cash costs falling from $2/lb guided previously, to $1.35/lb. Zinc output is expected to remain stable at between 152 000 t and 162 000 t, at C1 cash costs of $0.40/lb.