TORONTO (miningweekly.com) – Canada's Inmet Mining reported third-quarter net income of C$61,55-million on Tuesday, compared with C$75,06-million in the same period last year, and lowered its production forecasts for 2009.

On a per share basis, profit slid 29%, to C$1,10 a share, from C$1,55 a year earlier.

Inmet's shares declined on Tuesday, falling 4,96% by 12:04 in Toronto, to C$59,78 apiece.

The company said it benefited from higher copper, zinc and gold prices, but the gains were almost all offset by lower volumes.

Inmet produced less copper during the quarter because of lower grades and gold output fell because the Troilus mine, in Quebec, Canada, drew all its feed from a low-grade stockpile.

However, zinc output rose year on year, thanks to higher grades mined.

At the new Las Cruces mine, in southern Spain, copper production was well below expectations, at 2 200 t of copper cathode, which the company attributed to “typical start-up issues” encountered during the commissioning.

The issues are not expected to affect the long-term performance of the plant, though.

Group copper cash costs during the third quarter quarter were $0,46/lb, compared with $0,60/lb in the third quarter of 2008.

“Lower unit direct production costs and higher metal credits helped lower cash costs, but this was partly offset by higher unit treatment charges,” the company said.

Inmet has revised its annual production targets to reflect actual output so far this year, and now expects to produce 87 000 t of copper, 76 000 t of zinc, 224 000 oz of gold and 288 000 t of pyrite in 2009.

In July, the company revised  its earlier production guidance to 100 000 t of copper, 78 000 t of zinc, 230 000 oz of gold and 411 000 t of pyrite.

Inmet has base metals and gold mines in Spain, Turkey, Finland and Canada, as well as a stake in the Ok Tedi mine, in Papua New Guinea.

First production at the company's Mina de Cobre project, in Panama, is targeted for 2014. (Mina de Cobre was previously known as the Petaquilla project.)

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