NEW YORK Lundin Mining Corp. posted substantially improved results for the second quarter as the company prepares for the start up of its Eagle Mine project in Michigan later this year.
Toronto-based Lundin posted net income of $39.7 million, more than double net income of $16.6 million in the same period last year, on sales that rose 8.8 percent to $191.8 million.
The company "remain(s) very well positioned to deliver another year of strong operating results from all (its) mines," president and chief executive officer Paul Conibear said in the companys earnings report July 30.
Nickel and lead production "exceeded expectations" while copper and zinc production "were in line with targeted production for the quarter," the company said, citing higher throughput at its Aguablanca Mine in Spain and higher lead grades and throughput at its Zinkgruvan Mine in Sweden.
Lundin said it has subsequently increased its copper, nickel and lead production guidance to reflect "excellent" mine production at Aguablanca, higher throughput at Zinkgruvan and better-than-expected lead grades from the Lombador ore body at Neves-Corvo in Portugal.
The Eagle nickel-copper project continues to advance, with surface construction complete and all major equipment installed. Mill commissioning is expected to start in the third quarter, Lundin said, with the project on track to ship the first saleable copper and nickel concentrates in the fourth quarter.
The company delivered its first mine-to-mill shipment at the project in early July (amm.com, July 17). Commencement of production at the Eagle Mine, "combined with excellent nickel, copper and zinc price environments," is expected to result in "strong cash flows from all (Lundins) mines as the year advances," Conibear said.