(Kitco News) - Lundin Mining (TSX: LUN) announced yesterday that in Q2 2022, the company produced 64,096 tonnes (t) of copper (Q2 2021: 63,457 t), 41,912 t of zinc (Q2 2021: 34,833 t), 39 koz of gold (Q2 2021: 41 koz), and 4,719 t of nickel (Q2 2021: 4,774 t).
The company said that copper and zinc production in Q2 2022 was higher than the prior year quarter, adding that production costs and cash costs were higher in Q2 2022 than in Q2 2021 primarily due to the inflationary impacts on consumables, particularly diesel and electricity, as well as on contractor and maintenance costs.
The company also reported that its gross profit for the quarter ended June 30, 2022 was $46.0 million, a decrease of $334.2 million in comparison to the prior year quarter (Q2 2021: $380.2 million) due to lower metal prices net of price adjustments ($256.7 million) and higher production costs due to inflationary price increases.
For the three months ended June 30, 2022, the company posted a net loss of $48.6 million (Q2 2021: net earnings of $268.4 million), while net loss attributable to Lundin Mining shareholders was $52.6 million (($0.07) per share) in the second quarter.
"Unfortunately, our earnings were affected by significant provisional pricing adjustments given the late-quarter decline in base metal prices. Our balance sheet remains very strong with $470 million of net cash and total liquidity of roughly $2.3 billion at the end of the quarter," commented Peter Rockandel, President and CEO.
"Our operations continue to perform well with Candelaria, Eagle and Zinkgruvan all on-track to deliver annual production guidance. We have revised production guidance for Chapada given impacts of the very wet start to the year, and for Neves-Corvo zinc as we progress ramping the Zinc Expansion Project towards full capacity. We expect inflationary impacts on mining consumables to persist, which is reflected in our revised cash cost and capital expenditure guidance for Chapada and Candelaria," he added.
Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.
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