Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Diversified base metals mining company Lundin Mining expects another year of strong execution in 2015, following favourable 2014 production results, as the company focuses on cash generation and profit optimisation at each of its operations.
President and CEO Paul Conibear said the company was “very pleased” to have met and, in a number of cases, excelled on production compared with yearly production guidance.
Lundin noted that its 2015 production and cash operating cost guidance remained as per the company’s December 4 statement. However, given current metal price declines, capital and exploration spending in selected areas was being reviewed and any resulting restraint measures would be reported along with the company's 2014 financial results on February 18 after market close.
Lundin’s production results for the three and 12 months ended December 31, 2014 exceeded the high-end of the company’s yearly production guidance for zinc and nickel while meeting its overall targets for copper and lead.
The TSX-listed miner ended 2014 with a net debt balance of $829.5-million and did not have any amounts drawn on its $350-million revolving credit facility.
Conibear said Lundin was “particularly proud” of the continued ramp-up at the company’s Eagle nickel and copper mine, in the Upper Peninsula of Michigan, in the US, which had a very successful year in 2014.
For the year, nickel and copper production exceeded guidance as throughput, grades and recoveries were all higher than expected.
“[Eagle] is expected to generate significant cash flow for the company in future,” Conibear pointed out.
Further, he extended congratulations to Lundin’s operating teams for achieving a new company safety record performance, with improvements recorded across all operations.
A total recordable injury frequency rate (TRIFR) of 1.6 was achieved, measured for every 200 000 man-hours worked. This was an improvement of 20% over 2013's TRIFR of 2.0, Lundin highlighted.
Lundin Mining has operations in Chile, Portugal, Sweden, Spain and the US, producing copper, zinc, lead and nickel. In addition, the company holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine, in the Democratic Republic of Congo, and in Freeport Cobalt, which includes a cobalt refinery, in Kokkola, Finland.