Lundin Mining Corporation Announces Executive Changes
Jul 29 15
Lundin Mining Corporation announced that Peter M. Quinn, currently the President of Candelaria and Ojos del Salado will assume the position of Chief Operating Officer of Lundin Mining effective August 1, 2015. Mr. Quinn has over 25 years of experience in the mining industry, overseeing all aspects of mining, leaching and concentrating processes in both open pit and underground operations. He commenced his career at Western Mining Corporation's Olympic Dam Operations in 1988 (now BHP Billiton) and subsequently gained experience in Newcrest Mining, Phelps Dodge, and Freeport McMoRan before joining Lundin Mining in November 2014. Following the successful completion of construction and ramp up of operations at the Eagle mine, General Manager Mike Welch will be transferring from the Eagle Mine to take up the role of General Manager at Neves-Corvo in August.
Lundin Mining Corporation Announces Neves-Corvo Zinc Expansion Plans
Jul 29 15
Lundin Mining Corporation announced that the Feasibility Study examining an expansion of the zinc operations at Neves-Corvo achieved substantial completion by quarter end. The scope of the study includes underground development of the lower Lombador zinc deposits, a major underground conveying system to take ore to the existing shaft, expansion of shaft capacity to 5.6 million tonnes per year, zinc plant expansion to 2.5 million tonnes per year ore throughput, and construction of expanded water treatment, paste backfill and tailings storage infrastructure. Maximum zinc production is nominally 165 ktpa with 25 ktpa of lead by-product. The estimated capital cost, including the first full year of underground development costs, is approximately €245 million. The project schedule is estimated to be approximately 24 months from approval to proceed through to commissioning of the expanded facilities. An investment decision on zinc expansion has been deferred pending additional work to improve the existing zinc plant metallurgical recoveries and plant stability, and pending improved metal markets.
Lundin Mining Corporation Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2015 and Production Results for the Second Quarter Ended June 30, 2015; Provides Production and Capital Expenditure Guidance for the Year 2015
Jul 29 15
Lundin Mining Corporation reported earnings and production results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported sales of $501.3 million against $191.8 million a year ago. Operating earnings was $243.0 million against $74.2 million a year ago. Net earnings were $53.7 million against $39.7 million a year ago. Net earnings attributable to the company shareholders were $46.4 million against $39.7 million a year ago. Basic and diluted earnings per share were $0.06 against $0.07 a year ago. Cash flow from operations was $262.7 million against $33.8 million a year ago. The increase was primarily due to the operating earnings from Candelaria ($141.3 million) and Eagle ($40.3 million), and changes in non-cash working capital and long-term inventory ($86.3 million), partially offset by lower realized metal prices and price adjustments ($40.3 million) from European operations. The $152.0 million decrease in net debt during the quarter was largely attributable to operating cash flows of $262.7 million, partially offset by investments in mineral properties, plant and equipment of $78.8 million and interest payments of $38.8 million.
For the six months, the company reported sales of $1,032.8 million against $341.7 million a year ago. Operating earnings was $517.0 million against $117.3 million a year ago. Net earnings were $137.0 million against $53.1 million a year ago. Net earnings attributable to the company shareholders were $118.1 million against $53.1 million a year ago. Basic and diluted earnings per share were $0.16 against $0.09 a year ago. Cash flow from operations was $486.6 million against $61.3 million a year ago. Net debt position at June 30, 2015 was $497.2 million compared to $829.2 million at December 31, 2014 and $649.2 million at March 31, 2015. The increase was attributable to the operating earnings from Candelaria ($305.0 million) and Eagle ($96.4 million), and changes in non-cash working capital and long-term inventory ($87.5 million), partially offset by higher income taxes paid ($38.1 million). For the six months ended June 30, 2015, net debt decreased by $332.0 million due primarily to operating cash flows of $486.6 million, partially offset by investments in mineral properties, plant and equipment of $142.7 million.
For the quarter, the company reported copper of 73,565 (tonnes) against 28,631 (tonnes) a year ago. Nickel was 8,594 (tonnes) against 2,212 (tonnes) a year ago. Zinc was 37,259 (tonnes) against 37,202 (tonnes) a year ago. Lead was 8,459 (tonnes) against 10,250 (tonnes) a year ago.
For the year 2015, the company revised total attributable copper guidance to be 262,500 tonnes 277,000 tonnes against 257,000 tonnes 271,500 tonnes previous guidance. Total nickel is expected to 32,000 tonnes 35,500 tonnes against 32,000 tonnes 35,500 tonnes previous guidance. Total zinc is expected to be 140,000 tonnes 150,000 tonnes against 146,000 tonnes 155,000 tonnes previous guidance. Total lead is expected to be 34,000 tonnes 38,000 tonnes against 31,000 tonnes 35,000 tonnes previous guidance.
For the year 2015, the company expected capital expenditures to be $350 million (excluding Tenke). The Company expects to spend $40 million less on sustaining capital expenditures at Candelaria and $10 million less on sustaining capital expenditures at Neves-Corvo. In total, this represents a reduction of $50 million from the previous guidance.