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Lundin Mining announces Q1 results

Mining News - Published on Tue, 30 Apr 2019

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Lundin Mining Corporation reported cash flows of USD 62.1 million generated from operations in its Q1. Net earnings from continuing operations attributable to Lundin Mining shareholders were USD 51.7 million for the quarter ended March 31, 2019. Q1 net earnings include a loss on our equity investment in Freeport Cobalt of USD 11.9 million which was impacted by an inventory write-down. Marie Inkster, President and CEO commented, “This is a very exciting time for Lundin Mining. We are pleased with our results in the Q1 of 2019 with all mines operating well. We anticipate closing of the recently announced Chapada acquisition early in the Q3. Ramp-up of the Candelaria underground mines and more ore production from the open pit 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 Q4, and the Neves-Corvo Zinc Expansion Project continues to make meaningful development progress. We remain well positioned to deliver 2019 annual production and cost guidance and improved production and cash flow in the coming years.”

Highlights

Operational Performance
All metal production exceeded expectations during the Q1, with the exception of copper which was impacted by lower than planned grades at Neves-Corvo. Metal production for 2019 is expected to achieve annual guidance last reported.

Candelaria (80% owned): The Candelaria operations produced, on a 100% basis, 32,778 tonnes of copper, and approximately 20,000 ounces of gold and 320,000 ounces of silver in concentrate during the quarter. Copper production in the quarter was higher than the prior year comparable period primarily due to higher mill throughput. Copper cash costs1 of USD 1.62/lb for the quarter were marginally higher than full year guidance but lower than the prior year quarter. Candelaria is on track to meet annual 2019 copper production. Copper head grades are expected to increase in the second half of the year as more ore is sourced directly from Phase 10 of the open pit.

Ramp-up of the Candelaria Underground mine continues with the North Sector achieving a current production rate of approximately 10,500 tonnes per day. Development of the South Sector is progressing well with a production start-up date now projected by the end of the third quarter of 2019.

Eagle (100% owned): Eagle produced 4,213 tonnes of nickel and 3,897 tonnes of copper during the quarter. Nickel and copper production were both lower than the prior year quarter due to planned lower ore grades and severe winter weather conditions which impacted ore transportation to the mill. Nickel cash costs of $0.37/lb for the quarter were better than full year guidance and the prior year comparable period, primarily due the implementation of IFRS 16, Leases which resulted in a reduction in cash costs of USD 0.11 per lb in the current quarter.

Development of Eagle East continues to progress ahead of schedule and budget, with first ore scheduled into the mill by the Q4 2019.

Neves-Corvo (100% owned): Neves-Corvo produced 8,868 tonnes of copper and 18,773 tonnes of zinc for the quarter. For copper, the impact of lower head grades was partially offset by higher recoveries this quarter. Zinc head grades, in contrast, were 5% higher than the prior year comparable period and positively impacted production. Copper cash costs of $0.92/lb for the quarter were lower than full year guidance and the prior year period owing to higher-by-product credits.

Construction on the Zinc Expansion Project was approximately 54% complete at quarter-end. Surface facilities construction continued with the SAG building and flotation equipment installation. Underground development advanced with breakthrough of the last conveyor gallery and continued civil and mechanical construction. Careful monitoring of timeline and cost is ongoing to ensure the project remains on track.

Zinkgruvan (100% owned): Zinc production of 21,673 tonnes was higher than the prior year quarter reflecting higher head grades, while lead production of 5,832 tonnes was lower than the prior year quarter due to lower throughput. Q1 zinc cash costs of USD 0.44 per lb were slightly higher than full year guidance but remain on target to achieve annual guidance. Zinc cash costs approximated the prior year comparable period.

Source :

Posted By : Rabi Wangkhem on Tue, 30 Apr 2019
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