Quadra FNX Mining saw its shares drop due to the low production of copper being announced in 2010. The company said that it fell short of its production guidance in 2010 as it reported its full year production.
The full year copper production came to 224 million pounds which was much less than the revised forecast of 265 million pounds that the company had revealed in June. The shares of the Vancouver based mining company fell by 12% in early trade on the Toronto Stock Exchange.
The company has set its 2011 copper production guidance at between 223 to 267 million pounds. This is well below the 300 million pounds mark that the company had forecast in spring 2010. They also gave a projected $140 million capital expenditure for the year 2011. However all is not negative for the company.
Paul Blythe the chief executive officer of Quadra said that the company is beginning its first full year of consolidated operations with a strong cash position. They recently sold off a large stake in Gold Wheaton Gold Corp to Franco - Nevada for $262. Full financial results for Quadra’s fourth quarter and all of 2010 will be issued February 28.
Investors will be eager to see how the Sierra Gold project of the company located in Chile will progress. The company is currently looking for partners for developing the large scale mine.