JOHANNESBURG (miningweekly.com) – An improved production profile at diversified miner Lundin Mining’s 80%-owned Candelaria operation, in Chile, has led to an improvement in the company’s overall copper production guidance for 2016 and 2017, compared with the estimates provided at the end of 2014.
Lundin on Wednesday released its production guidance for 2016 to 2018, outlining estimated attributable copper production of 241 500 t to 255 000 t for 2016 and 240 500 to 254 000 t for 2017.
This was an improvement on the guidance provided by Lundin in December 2014, outlining that attributable copper output would reach 237 500 t to 251 500 t for 2016 and 225 500 to 244 500 t for 2017.
The miner on Wednesday also said its attributable copper production for 2018 was expected to reach 230 000 t to 245 500 t.
Zinc production was, meanwhile, expected to reach between 145 000 t and 155 000 t for 2016 and 2017 and between 155 000 t and 165 000 t in 2018.
This compared with the previous guidance of 143 000 t to 151 000 t and 150 000 t to 158 000 t of zinc for 2016 and 2017.
Nickel output was expected to reach between 21 000 t and 24 000 t for 2016, 18 000 t to 21 000 t for 2017 and 15 000 t to 18 000 t for 2018, according to the latest production guidance.
Lundin had previously expected nickel production to be between 26 500 t and 30 000 t for 2016 and between 22 500 t and 26 000 t for 2017.
President and CEO Paul Conibear commented on Wednesday that the company’s near-term strategy was focused on stable production with a low capital investment and improving operating costs, in order to maximise profitability and cash flows.
“The stability of our producing assets, combined with the strength of our balance sheet, ideally positions the company to generate leading returns to shareholders in any commodity price environment,” he added.
In addition to the Candelaria operation, Lundin also had base metals operations in Portugal, Sweden and the US.