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Canada’s Lundin Mining swings to profit in Q1 2021

29 Apr 2021 (Last Updated April 29th, 2021 15:06)

Canadian metals mining company Lundin Mining has reported attributable net earnings of $135.2m in the first quarter (Q1) of 2021 compared with a loss of $111.5m in the same quarter of 2020.

Canadian metals mining company Lundin Mining has reported attributable net earnings of $135.2m in the first quarter (Q1) of 2021 compared with a loss of $111.5m in the same quarter of 2020.

Adjusted earnings were $144.4m in Q1 2021 versus a loss of $40.6m in the previous year.

Adjusted EBITDA increased to $354.4m from $90.3m in the prior year.

Cash flow from operations increased to $158.7m in the three-month period ending 31 March 2021 from $83.4m a year ago.

The firm produced 57,354t of copper, 33,365t of zinc, 34 thousand ounces (koz) of gold and 5,354t of nickel in the January-March quarter.

The comparable figures in Q1 2020 were 62,167t, 36,947t, 39koz, and 3,575t, respectively.

Lundin Mining owns Chapada, Eagle, Neves-Corvo, and Zinkgruvan mines, as well as an 80% ownership stake in Candelaria mine.

Chapada produced 9,841t of copper and around 13,000oz of gold in concentrate in the quarter while Eagle produced 5,354t of nickel and 5,391t of copper.

Neves-Corvo produced 7,441t of copper and 14,710t of zinc while Zinkgruvan saw zinc production of 18,655t.

Candelaria produced 34,203t of copper and around 21,000oz of gold in concentrate on a 100% basis.

The company said that operations were well in the quarter with ‘production in-line with expectations’.

It further noted that full-year metal production at all mines was on track to reach or surpass previously reported guidance.

Lundin Mining president and CEO Marie Inkster said: “Candelaria and Chapada significantly increased mill throughput quarter-over-quarter and a new record for zinc ore was set at Zinkgruvan. With increasing ore grades at Candelaria and Chapada, we are well-positioned to deliver our annual guidance.

“While first-quarter financial results were impacted by timing with a shipment from Chapada pushed into early April, we generated significant operating cash flow. Eagle achieved a cash cost of negative $1.62/lb nickel and contributed over $75m of operating cash flow.”

The firm also had an optimistic outlook regarding the present year saying that it will benefit from the investments made in operations.

Lundin Mining mainly produces copper, zinc, gold and nickel. It has a presence in Brazil, Chile, Portugal, Sweden and the US in addition to Canada.