The first-quarter earnings of TSX- and Nasdaq Stockholm-listed Lundin Mining fell by 30% to $60.9-million, the Canadian base metals miner reported on Wednesday.
The first-quarter earnings include a loss on Lundin’s equity investment in Finnish business Freeport Cobalt of $11.9-million, which was impacted by an inventory write-down.
But the lower earnings were also impacted by lower gross profit, which decreased by $8.7-million to $141.2-million as revenue fell to $416.4-million, from $470.5-million.
Commenting on the March quarter performance, CEO Marie Inkster said that Lundin was pleased with its results, noting that all its mines were operating well.
The company produced 46 122 t of copper in concentrate, 40 446 t of zinc and 4 213 t of nickel. This compared with 47 556 t of copper, 36 880 t of zinc end 5 141 t of nickel in the corresponding period a year earlier.
The group’s guidance for the year is to produce between 199 000 t and 218 000 t of copper, 147 000 t to 157 000 t of zinc and 12 000 t to 15 000 t of nickel.
“Ramp-up of the Candelaria underground mines and more ore production from the openpit are expected to increase copper ore grades in the second half of this year. Eagle East remains on schedule for first ore to the mill in the fourth quarter, and the Neves-Corvo Zinc Expansion Project continues to make meaningful development progress,” said Inkster.
She added that the closing of the Chapada acquisition would close early in the third quarter. The company last month announced it would buy Yamana Gold’s Chapada mine, in Brazil, for $1-billion.
Lundin’s other mines are located in Chile, the US, Portugal and Sweden.