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Lundin Mining Q1 profit slips to $50.1 million, sales down from year ago

TORONTO – Lundin Mining Corp. (TSX:LUN) said Wednesday it earned $50.1 million in its latest quarter, down from $58.3 million a year ago as sales revenue fell more than 10 per cent on lower metal prices.

The profit amounted to nine cents per share for the quarter ended March 31, compared with 10 cents per share a year ago.

Sales fell to $188.2 million from $212.8 million.

The company said the drop in earnings was due in part to lower metal prices and higher depreciation, depletion and amortization costs.

Lundin said the average London Metal Exchange metal prices for copper and nickel for the quarter were lower by five and 12 per cent respectively compared with a year ago, while lead prices were up 10 per cent. Zinc prices were flat.

Copper production in the quarter totalled 17,016 tonnes, compared with 17,145 a year ago, while zinc production dropped to 25,947 tonnes from 32,619.

Lead production amounted to 6,591 tonnes, down from 10,966. Nickel production was 1,797 compared with none at year ago.

Lundin has mines in Portugal, Sweden and Spain and a 24 per cent stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo and in the Kokkola cobalt refinery located in Finland.