Lundin Mining's Q1 profit up 51 per cent on higher copper and lead prices.
May 15, 2008VANCOUVER - Lundin Mining Corp. (TSX:LUN) said Thursday its first-quarter profit rose 51 per cent to US$78.8 million on higher copper and lead prices.
The Vancouver-based miner, reporting in U.S. dollars, said sales were $305.7 million, up 58 per cent from $193.9 million in the same quarter last year as stronger copper and lead prices offset declines for zinc and nickel.
Sales were also augmented by last July's acquisition of the Aguablanca mine.
The earnings amounted to 20 cents per share and compared with a profit of US$52.1 million or 18 cents per share in the year-ago period.
During the quarter, the average price of zinc was down 30 per cent while lead and copper prices were up 62 per cent and 31 per cent.
Lundin said production was in line with or ahead of internal expectations with the exception of a small shortfall in zinc.
Metal sales were generally lower than expected owing to timing of shipments but this should correct over the balance of the year, Lundin said.
Lundin is diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland. The company merged with EuroZinc Mining Corp. in 2006 and acquired Rio Narcea Gold Mines last year in a deal valued at $925 million.
During the past two years, Lundin has made a number of other significant corporate transactions including a $1.4-billion stock-swap deal to acquire Tenke Mining Corp.
On the TSX, Lundin shares were trading up 30 cents at C$8.00.
