Mining News
Lundin Mining Hurt By Soft Base Metal Prices
Lundin Mining's gross profit in Q2, announced earlier this week, was $25.1 million, a decrease of $130.0 million in comparison to the $155.1 million reported during the same quarter a year ago.
Lower metal prices were the culprit. Other factors were lower sales volumes, higher depreciation costs and higher zinc treatment and refining charges.
Copper guidance in 2019 was revised upwards from between 199,000 to 218,000 tonnes to between 224,000 to 245,000 tonnes primarily due to the acquisition of Chapada Mine located in Brazil. Zinc and lead guidance stayed the same.
Lundin Mining's Neves-Corvo Mine will cost $61 million more to build over the previous estimate. Construction delays and underground paste backfill expansion added to costs.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
