Posted in | Copper | Zinc | Earnings

Lundin Mining Profit Jumps 36%

The second quarter earnings of Lundin Mining Corporation have shown an increase of 36% from the corresponding period last year. However this was less than what the company expected. The lower earnings were a result of poor ore grades at their Portugal and Sweden based mines.

The Canadian company said that it had a net income of $57.7 million in the quarter ending June 30, 2011. This represents 10 cents a share earnings for the Toronto based company. Last year the company earned $42.3 million in the same time frame coming in at 7 cents per share earnings.

The company which has extensive zinc and copper mining operations in both Africa and Europe was expected by Thomson Reuters to net 13 cents per share earnings in the second quarter. This did not happen despite sales increasing from $183.1 million to $184 million in the year. Copper production fell by 28% to 13,831 tons from 21,774 tons last year and zinc production fell by 3% to 27,400 tons. They had no nickel production in the second quarter.

The company's Zinkgruvan mine in Sweden also produced less zinc than expected during the quarter as it dealt with an overflow of lower-grade material. However the shortfall was largely made up by increased production from its Galmoy mine in Ireland.

Lundin Mining Corporation was also the center of a complicated takeover bid by Equinox Minerals. The hostile bid by Equinox Minerals fell apart when Barrick Gold acquired Equinox Minerals. Lundin Mining was also hoping to accomplish a merger of equals with Inmet Mining and was unable to complete that either.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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