TORONTO (miningweekly.com) - TSX- and LSE-listed First Quantum Minerals earned $101,5-million in the three months ended June 30, compared with $208-million a year earlier, the company announced on Monday.

Profit was hurt by “significantly” lower copper prices compared with prices during the second quarter of 2008, as well as a negative hedging adjustment of $52,7-million.

Copper production increased 14%, to 92 486 t, while gold output was 18% higher, at 36 827 oz.

However, First Quantum realised an average copper price for the quarter of just $1,85/lb, compared with $3,38/lb a year earlier.

Cash costs decreased 24%, compared with the second quarter of 2008, to $0,90/lb.

First Quantum said it still expects to achieve its full-year production guidance of 380 000 t of copper for 2009, but it revised its gold output forecast downwards, to 220 000 oz, because of delays in refining at the gold dore smelter and gold recovery problems at the Kansanshi mine, in Zambia.

The total cash costs are also expected to be slightly higher than expected this year, at $0,88/lb.

First Quantum has mines in Zambia, the Democratic Republic of Congo (DRC) and Mauritania.

The company said that it has received no official notification of any cancellation of the mining contract at its Kolwezi project, after media reports last week cited a DRC official as saying the contract had been revoked.

"While the company will continue to seek a negotiated solution to the DRC mining contract revisitation, it will, if necessary, pursue all available legal remedies, including recourse to international arbitration," the miner said in a statement.

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