TORONTO, ONTARIO — (Marketwire) — 02/21/13 — Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) („Lundin Mining“ or the „Company“) today reported net earnings before impairment charges of $45.0 million ($0.08 per share) for the quarter ended December 31, 2012. Cash flows of $49.4 million were generated from operations during the quarter, not including the Company-s attributable cash flows of $39.2 million from Tenke Fungurume.
Paul Conibear, President and CEO, commented, „Our operations continue to consistently perform. Especially pleasing this last quarter was the performance of Zinkgruvan, with record production of zinc, lead and copper in concentrate and maintaining a cash cost of 12 cents per pound of zinc for the quarter and 13 cents per pound for the year.
With the staged commissioning and substantial completion of Tenke-s Phase II expansion achieved by year end 2012, we also saw record copper production at Tenke and continue to be very pleased with how this operation is running and the cash flow being generated.
Looking forward, we expect our own mine-s aggregate 2013 production and operating costs to be substantially in line with that achieved in 2012, and surplus cash flows from Tenke contributing materially to our balance sheet.“
Fourth quarter earnings were affected by a non-cash impairment charge of $67.3 million ($62.1 million after-tax) from a write down of mineral properties, plant and equipment and goodwill at the Aguablanca mine. Although the decision regarding the future configuration of the pit is not anticipated until the second quarter of 2013, the Company revalued the assets reflecting a reduction in the mineable reserve to only those areas not affected by pit wall instability and for the time being we assume no additional investment to attempt to recover reserves in the affected area.
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.
On Behalf of the Board,
Paul Conibear, President and CEO
Forward-Looking Statements
Certain of the statements made and information contained herein is „forward-looking information“ within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company-s expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company-s Business in the Company-s Annual Information Form and in each management-s discussion and analysis. Forward-looking information is, in addition, based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long-term price of copper, zinc, lead and nickel; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
Contacts: Lundin Mining Corporation Sophia Shane Investor Relations North America +1-604-689-7842
Lundin Mining Corporation John Miniotis Senior Business Analyst +1-416-342-5565
Lundin Mining Corporation Robert Eriksson Investor Relations Sweden +46 8 545 015 50
Only registered users can comment.
