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.