(Kitco News) - Lundin Mining (TSX: LUN) reported yesterday that its Q3 2022 zinc (40,327 tonnes) and nickel (4,379 tonnes) production was higher than the prior year quarter, with copper (63,930 tonnes) modestly below, but in-line with expectations.
The company also produced 45 koz of gold in Q3 2022, which is 2% lower than 46 koz produced in Q3 2021.
Lundin added that production costs and cash costs were higher this quarter than the prior year quarter primarily due to the year-to-date inflationary impacts on consumables, particularly diesel and electricity, as well as on contractor costs, partially offset by favorable foreign exchange.
The company’s gross profit for the quarter ended September 30, 2022 was $82.5 million, a decrease of $221.4 million in comparison to the prior year quarter due to higher operating costs impacted by inflationary impacts and lower metal prices.
On a year-to-date basis, gross profit was also lower than the prior year comparative period by $329.2 million due to the same impacts, it said.
The company also reported net loss attributable to Lundin Mining shareholders of $11.2 million (($0.01) per share) in Q3 2022 (Q3 2021: net earnings of $173.7 million) and earnings of $281.3 million ($0.37 per share) for the nine months ended September 30, 2022.
Adjusted earnings were $30.9 million ($0.04 per share) for the quarter and $288.9 million ($0.38 per share) for the nine months ended September 30, 2022. Adjusted EBITDA for the three and nine months ended September 30, 2022 were $202.4 million and $938.8 million, respectively.
According to a news release, the company’s total copper, zinc, gold and nickel production are all tracking to the most recently reported guidance ranges as outlined in the MD&A for the three and six months ended June 30, 2022.
"Our operations performed well in the third quarter, with production of all metals tracking to annual guidance ranges. Despite persistent inflationary conditions, Lundin Mining generated adjusted EBITDA of over $200 million and $180 million of adjusted operating cash flow, demonstrating the quality of our portfolio of assets," commented President and CEO Peter Rockandel.
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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