NEW YORK First Quantum Minerals Ltd.s earnings soared in the second quarter on a sharp jump in copper and nickel sales.
The Vancouver, British Columbia-based miner posted net income of $133.6 million for the three months ended June 30, up 85.8 percent from the same period last year, on an 8.7-percent increase in revenue to $945.1 million. Copper sales volume increased 19.3 percent to 114,449 tonnes and nickel sales rose 12.3 percent to 12,223 tonnes.
"Our balance sheet remains strong. With the addition of extra financing flexibility during the quarter, funding for our growth projects is well provided for and we were able to take the opportunity to supplement our growth pipeline with our proposed acquisition of Lumina Copper Corp.," said First Quantum chairman and chief executive officer Philip Pascall. "This underscores our belief in the fundamentals of copper and is another step in our long-stated objective of geographical diversification through the acquisition of world-class, early stage copper assets."
First Quantum recently agreed to buy Lumina Copper for $433 million, gaining control of the Taca Taca deposit in Argentina (amm.com, June 19). "The Taca Taca project is at the stage where we can apply our resources and development expertise to realize its full potential and further add to our copper production profile," Pascall said.
The company, while looking out for more acquisitions, said the "bar is very high" for any potential acquisitions.