Toronto, October 24, 2012 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today reported net earnings of $37.9 million ($0.07 per share) for the three months ended September 30, 2012 compared to $16.4 million ($0.03 per share) for the three months ended September 30, 2011.
Sales volumes in the current quarter were directly impacted by labour action of dock workers in Portugal and Sweden resulting in lower sales volumes than the prior quarter, with the offsetting positive impact to be realized in the fourth quarter. Unit cash costs1 of $1.87/lb for copper were in line with expectations after taking into account planned maintenance, and were much lower than the $2.35/lb realized the third quarter of 2011. Unit cash costs for zinc were $0.08/lb for the quarter compared to $0.13/lb in the third quarter of last year.
Paul Conibear, President and CEO commented, “Our operations performed well this quarter, building on the production increases of the past two quarters of 2012. The Company continues to expect to deliver a strong fourth quarter operationally, with production from all metals now anticipated to be near the high-end of our guidance ranges.
In addition, we continue to be very pleased with the performance at Tenke. For the quarter, production at Tenke achieved another all-time record high for both copper and cobalt, while the Phase II Expansion Project remains on budget and is expected to be substantially completed by year end.
The sustained execution by our operating teams continues to underpin our ability to add value by consistently achieving strong operational performance at all of our mines.”
| Summary financial results for the quarter and year-to-date: |
| Three months ended | Nine months ended | ||||||||||
| September 30 | September 30 | ||||||||||
| US$ Millions (except per share amounts) | 2012 | 2011 | 2012 | 2011 | |||||||
| Sales | 159.6 | 146.2 | 544.6 | 541.7 | |||||||
| Operating earnings2 | 71.1 | 53.8 | 256.9 | 257.6 | |||||||
| Net earnings | 37.9 | 16.4 | 140.3 | 147.6 | |||||||
| Basic earnings per share | 0.07 | 0.03 | 0.24 | 0.25 | |||||||
| Cash flow from operations | (25.7) | (36.6) | 144.6 | 194.8 | |||||||
| Ending cash position | 255.9 | 256.2 | 255.9 | 256.2 | |||||||
1. Cash cost/lb of copper and zinc are non-GAAP measures defined as all cash costs directly attributable to mining operating, less royalties and by-product credits.
2. Operating earnings is a non-GAAP measure defined as sales, less operating costs (excluding depreciation) and general and administrative costs.
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For complete report see attached file.
For further information, please contact:
Sophia Shane, Investor Relations North America: +1-604-689-7842
John Miniotis, Senior Business Analyst: +1-416-342-5565
Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50
