Lundin Mining Third Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 10/28/15 -- Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX: LUN) (OMX: LUMI) today reported a net loss of $35.3 million or a net loss attributable to Lundin shareholders (after deducting non-controlling interests) of $34.6 million ($0.05 per share) for the quarter ended September 30, 2015. Cash flows of $120.2 million were generated from operations in the quarter, not including the Company's attributable cash flows from Tenke Fungurume.
The Company continued to strengthen its balance sheet, generating free-cash flow and reducing net debt during the quarter by a further $43.4 million to $453.8 million, despite lower metal prices and negative price adjustments of $56.4 million related to the re-pricing of provisional sales from prior periods.
Mr. Paul Conibear, President and CEO commented, "We are pleased that our operations continue to generate healthy cash flows despite the low commodity price environment. Our continued focus on cost efficiency and productivity enhancements has enabled us to maintain all mines producing at low cash costs with good margins, and we have been able to reduce our annual capital expenditure guidance by a further $40 million, while maintaining our production profile intact. The combination of our strong balance sheet and steady operations helps ensure that Lundin will remain in a favorable position to continue to generate excellent shareholder value moving forward."
Summary financial results for the quarter and year-to-date:
Highlights
Operational Performance
For the third quarter of 2015, production results were strong but financial results were impacted by a lower metal price environment. The Company remains on track to meet overall full year guidance.
Candelaria (80%): The Candelaria operations produced, on a 100% basis, 45,195 tonnes of copper, and approximately 434,000 ounces of silver and 25,400 ounces of gold in concentrate, with copper and gold production better than expectations as a result of higher throughput. Copper cash costs1 of $1.44/lb for the quarter remain on track to meet full year guidance of $1.35/lb.
Eagle (100%): Eagle's operational results were generally in-line with expectations, with both nickel (6,438 tonnes) and copper (6,514 tonnes) production meeting projections for the quarter. Nickel cash costs of $2.38/lb for the quarter were higher than full year guidance of $2.00/lb largely as a result of lower copper by-product credits. Both production and nickel cash costs remain on track to meet full year guidance.
Neves-Corvo (100%): Neves-Corvo produced 13,917 tonnes of copper and 14,363 tonnes of zinc in the third quarter. Copper production exceeded the prior year comparable period by 28% due to higher head grades. Zinc production fell short of the prior year comparable period, resulting from lower mill feed grades and, in particular, below target metal recovery in the zinc plant. Copper cash costs of $1.83/lb for the quarter were higher than full year guidance ($1.55/lb) due primarily to lower by-product production and sales.
Zinkgruvan (100%): Zinc production in the third quarter of 2015 was 8% lower than the comparable period in 2014, while lead production for the third quarter of 2015 was higher than the 2014 comparable period. Production variances for both metals were due to normal variations of grades in the ore milled. Cash costs for zinc of $0.41/lb for the quarter were in-line with guidance ($0.40/lb).
Aguablanca (100%): Despite the suspension of underground mining operations during the quarter, Aguablanca met production expectations, though current quarter production of 1,708 tonnes of nickel and 1,658 tonnes of copper was lower than the prior year comparable period due to lower throughput, head grades, and recoveries from stockpiled ore. Cash costs of $5.23/lb of nickel for the quarter were higher than full year guidance ($3.75/lb).
Tenke (24%): Tenke operations continue to perform well. Lundin's attributable share of third quarter production included 11,761 tonnes of copper cathode and 954 tonnes of cobalt in hydroxide. The Company's attributable share of sales included 12,278 tonnes of copper at an average realized price of $2.32/lb and 1,022 tonnes of cobalt at an average realized price of $8.96/lb. Tenke operating cash costs for the third quarter of 2015 were $1.15/lb of copper sold, marginally higher than the latest guidance. Cash distributions received by Lundin Mining in the quarter from Tenke were $2.5 million. An additional $1.2 million was received from the Freeport Cobalt operations. Year-to-date cash distributions to the Company from Tenke and Freeport Cobalt totalled $20.6 million, in-line with expectations.
Financial Performance
Corporate Highlights
Financial Position and Financing
Outlook
2015 Production and Cost Guidance
2015 Capital Expenditure and Exploration Guidance
Capital expenditures for 2015 are expected to be $310 million (excluding Tenke), $40 million less than previous guidance. The Company expects to spend $20 million less on sustaining capital expenditures at our Candelaria and Neves-Corvo operations as part of on-going efforts to defer or reduce non-essential spending during the current metal price environment.
The Company estimates its share of expansion related initiatives and sustaining capital funding for 2015 at Tenke to be $80 million, unchanged from previous guidance. All of the capital expenditures are expected to be self-funded by cash flow from Tenke operations. The Company expects to receive cash distributions from Tenke in 2015 of approximately $20 million, at the lower end of previous guidance of $20 - $30 million.
The total exploration expense is expected to be $60 million, unchanged from previous guidance.
About Lundin Mining
Lundin Mining Corporation ("Lundin", "Lundin Mining" or the "Company") is a diversified Canadian base metals mining company with operations in Chile, the USA, Portugal, Sweden, and Spain, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume ("Tenke") copper/cobalt mine in the Democratic Republic of Congo ("DRC") and in the Freeport Cobalt Oy business ("Freeport Cobalt"), which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on October 28, 2015 at 5:30 p.m. Eastern Time.
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities legislation. This report includes, but is not limited to, forward looking statements with respect to the Company's estimated annual metal production, cash costs, exploration expenditures, capital expenditures and dividends, as noted in the Outlook section and elsewhere in this document. These estimates and other forward-looking statements are based on a number of assumptions and 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 estimated operating and cash costs, foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; including 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, and commodity price fluctuations; the inability to successfully integrate the Candelaria operations or realize its anticipated benefits; 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. 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, nickel, zinc and other metals; 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
John Miniotis
Senior Manager Corp Development & Investor Relations
+1-416-342-5565
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
Lundin Mining Corporation
Sonia Tercas
Senior Associate, Investor Relations
+1-416-342-5583
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Datum: 28.10.2015 - 21:30 Uhr
Sprache: Deutsch
News-ID 430242
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