NEW YORK First Quantum Minerals Ltd.s earnings fell in the second quarter following its Canadian $5.1-billion ($4.9-billion) acquisition in April of Inmet Mining Corp. and the associated Cobre Panama mining project.
Vancouver, British Columbia-based First Quantum posted net income of $71.9 million in the three months ended June 30, down 49.4 percent from $142 million in the same period last year despite a 20.4-percent increase in sales to $869.3 million.
"At Cobre Panama weve made very good progress," president Clive Newall said during a conference call Aug. 1. "Our projects development team is confident that by applying our steadier, more practical approach, the project will deliver the kind of outcomes we envisioned."
First Quantums copper production totaled 103,694 tonnes in the second quarter, up 43.7 percent from 72,184 tonnes a year earlier, chief financial officer Hannes Meyer said during the call. The company cited a combination of higher grades and recoveries at its Guelb Moghrein copper and gold mine in Mauritania and its Kevitsa nickel-copper-platinum project in Finland, and recent expansions at its Kansanshi copper mine in Zambia.
Higher production was offset by lower copper prices, Meyer said.
Comex high-grade spot copper prices averaged $3.2516 per pound in the second quarter, down 8.3 percent from $3.5457 a year earlier.