Lundin Mining Second Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 07/30/13 -- Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX: LUN)(OMX: LUMI) today reported net earnings of $16.6 million ($0.03 per share) for the quarter ended June 30, 2013. Cash flows of $26.6 million were generated from operations, not including the Company's attributable cash flows of $32.4 million from Tenke Fungurume.
Paul Conibear, President and CEO commented, "During the second quarter, our operations continued, overall, to perform well and we remain on track to achieve our 2013 production guidance. Tenke had another record copper production quarter and cash distributions received to date exceeded original expectations.
Due to the on-going weakness in metal prices, the Company has implemented initiatives to reduce or defer capital investments and some exploration spending until metal markets improve. We continue to evaluate our operations with the aim to actively preserve margins and maximize profitability.
The second quarter also marked a milestone of regenerating growth in the Company with the acquisition of the high grade Eagle Mine. The transaction represents a significant achievement in our long-stated objective of acquiring a high quality, advanced stage asset in a low risk, mining oriented jurisdiction. Construction is ramping up well at the Eagle mine and mill site and we look forward to an exciting year ahead as it comes into production in 2014."
Summary financial results for the quarter and year-to-date:
(1) Operating earnings is a non-GAAP measure defined as sales, less operating costs (excluding depreciation) and general and administrative costs.
Operational Highlights
Wholly-owned operations: Overall mine performance during the quarter achieved objectives. Copper and lead production for the quarter were largely in-line with expectations while nickel production was higher than anticipated. Zinc production improved from the first quarter of 2013; however, cash costs per pound(1) of zinc continued to be higher than expected. Copper, zinc and lead production guidance for Neves-Corvo and Zinkgruvan has been maintained as originally reported. Nickel and copper production guidance at Aguablanca has been increased reflecting excellent mine performance year-to-date.
Tenke: Tenke achieved another quarterly record in mining, milling and copper production volumes and cash distributions to the Company year-to-date have exceeded expectations.
Total production from the Company's assets including attributable share of Tenke:
(1) Cash cost/lb of copper are non-GAAP measures defined as all cash costs directly attributable to mining operating, less royalties and by-product credits.
Financial Highlights
Financial Performance
Corporate Highlights
Financial Position and Financing
(1) Net cash is a non-GAAP measure defined as available unrestricted cash less long-term debt and finance leases.
Outlook
2013 Production and Cost Guidance
2013 Capital Expenditure Guidance
Capital expenditures for 2013 (excluding Eagle Mine) are expected to be $230 million, a $55 million reduction from previous guidance. The Company and Freeport have implemented initiatives to reduce or defer capital investments until metal markets improve. Details of estimated 2013 capital expenditures are as described below:
2013 Exploration Guidance
As a result of program restraint, total estimated exploration expenditures for 2013 (excluding Tenke) have been reduced to $28 million, compared to the original plan of $38 million.
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Portugal, Sweden and Spain and a development project in the US, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
Forward-Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the estimated cash costs, the timing and amount of production from the Eagle Mine, the cost estimates for the Eagle Mine, foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management's discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, zinc, lead and nickel; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward -looking statements.
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
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Datum: 30.07.2013 - 21:39 Uhr
Sprache: Deutsch
News-ID 283205
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