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Lundin Mining boosts net earnings 145% in Q1 on higher metal prices

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(Kitco News) - Lundin Mining (TSX: LUN) said yesterday that its gross profit for the quarter ended March 31, 2022 was $478.8 million, an increase of $226.3 million compared to the first quarter of 2021 ($252.5 million).

The company explained that this increase was primarily due to higher revenues driven by higher metal prices and price adjustments ($238.5 million) and higher sales volumes.

Net earnings for the current quarter were $378.1 million, a $223.9 million or 145% increase over the first quarter of 2021 ($154.2 million) primarily attributable to higher gross profit.

Adjusted earnings for the quarter were $295.6 million, compared to $144.4 million in the prior year quarter, a reflection of higher gross profit partially offset by higher income taxes.

According to a press-release, the company’s copper (65,081 tonnes) and gold (34 koz) production exceeded the prior year quarter, while zinc production of 32,391 tonnes was in-line and nickel production of 4,281 tonnes was lower than the prior year quarter, as expected.

Lundin added that its total copper, zinc and nickel production are all tracking above the mid-point of the company's 2022 guidance ranges of 258,000t – 282,000t of copper, 188,000t – 203,000t of zinc, and 15,000t – 18,000t of nickel. Gold production is currently trending at the low end of the 153,000oz – 163,000oz range.

The company also announced that its Board of Directors has declared a regular quarterly dividend of CAD$0.09 per share, payable on June 22, 2022, to shareholders of record at the close of business on June 3, 2022.

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.


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