Equinox Minerals Limited released its results of operations and financial condition for the 3 and 9 months ended September 30th 2009 and its financial position as at September 30th 2009.
Highlights for the quarter
1. Copper production increased 15% over Q2 of 2009 and 26% over Q1 of 2009 with 28,111 tonnes of copper produced at an average operating cost of USD 1.46 per pound;
2. Operating profit increased 77% over Q2 of 2009 with the achievement of USD 64.1 million operating profit for the 3 month period ended September 30th 2009;
3. Operating profit was subsequently offset by non cash derivative instrument losses resulting from the rising copper price leading to a net loss position, after tax of USD 56.3 million, primarily related to the remaining hedge book being marked to market at the current strengthening copper price. Revenue was positively impacted by the strengthening copper price;
4. Realized copper price, net of smelter treatment charges was USD 2.58 per pound and 16,632 tonnes of payable copper provisionally priced at USD 2.79 per pound remain subject to final pricing adjustment during Q4 of 2009;
5. Total material movement increased by 44% compared to Q2 of 2009 and ore mined increased by 33% compared to Q2 of 2009;
6. Lower metallurgical recoveries continued to impact production due to the proportion of transitional ore processed. Orebody studies by consultants Golder & Associates show that the Malundwe resource reconciliations are consistent with the original mine design. These studies also confirm original estimates that the transitional ore constitutes about 5% of the ore body;
7. Mining of the uranium zones at Valeria South and Valeria North within the Malundwe pit has produced a stockpile of 1.94 million tonne at 1,044 ppm uranium and 0.81% copper to the end of Q3 of 2009;
8. Pit preparation has been substantially enhanced for the forthcoming 2009 to 2010 wet seasons;
9. Hitachi has agreed to mobilize an additional five x EH4500 dump trucks in order to expedite the recovery of lost availability hours on the existing fleet. These additional trucks are scheduled to be on site by mid 2010;
10. Equinox took delivery of an additional Caterpillar light mining fleet including 16 x 40 tonne dump trucks, 5 x 100 tonne dump trucks, 2 x excavators and 3 x bulldozers, which are being used primarily to accelerate stripping of weathered material.
