QuadraFNX Mining Announces 2009 First Quarter Financial Results by 24hgold

Re: News Release - Tuesday, May 12, 2009
Title: Quadra Mining Ltd. Announces 2009 First Quarter Financial Results

(All figures, except per share amounts, are in $ US thousands unless otherwise stated or unless context requires otherwise)

Vancouver, Canada -- May 12th, 2009 Quadra Mining Ltd. (the "Company" or "Quadra") (TSX: QUA) announces net earnings of $26,655 or $0.40 per share (basic) for the three months ended March 31, 2009 compared to $78,563 or $1.42 per share (basic) for the three months ended March 31, 2008. The Company generated operating income of $46,244 in the first quarter of 2009, however earnings were impacted by a derivative loss of $8,810 ($0.13 per share) related to the decline in the fair value of the Company's copper put options due to the increasing copper price during the quarter. Operating cash flow before working capital decreased to $55,011 or $0.83 per share in the first quarter of 2009 compared to operating cash flow of $95,071 or $1.71 per share for the same period in 2008, due to lower average copper prices in the current year. Quadra recorded revenues of $106,316 million during the quarter from the sale of 41 million pounds of copper and 30,258 ounces of gold.

Paul Blythe, President and CEO of Quadra comments; "Revenues were derived from two operations this quarter with the Robinson Mine continuing to dominate revenues, generating $97 million from the sale of 34 million pounds of copper and 30 thousand ounces of gold, and the Carlota Mine beginning to contribute with its first shipment of copper cathodes made in February. Robinson's revenues from concentrate sales benefited from the increase in the copper price which rose from $1.33/lb at year-end to $1.83/lb at end of the first quarter. This resulted in positive pricing adjustments of $14 million related to fourth quarter 2008 sales."

"First quarter production results at both operations were in line with mine plan estimates and are on track to meet 2009 guidance of 140 million pounds of copper and 100,000 ounces of gold at Robinson and 50 million pounds of copper at Carlota. As required under our revised Robinson mine plan that we announced in January, during the quarter we commenced mining activity in the Kimbley and Wedge pit areas of Ruth. The transition to the new pit area, which included relocation of the large shovel and other equipment, resulted in lower than normal waste tons mined. This reduction in stripping, coupled with strong gold by-product credits, were the major contributors to a very low cash cost of $0.80 per pound of copper produced in the first quarter. However, our annual cost guidance remains unchanged and we still expect Robinson's 2009 unit costs to be in the range of $1.30 per pound. Production at Carlota continues to ramp up on schedule and as stated previously, the focus going forward is to put the Pinto Creek diversion in place, which will result in lower head grades in 2009."

Paul Blythe continues; "In April we closed the acquisition of Centenario Copper Corporation and their Franke project, a heap-leach SX-EW in northern Chile with a plant design capacity of approximately 66 million pounds per year of cathode copper. In order to fund Franke's development we completed a $68 million equity raise in April, and are continuing to negotiate the $37.5 million project loan facility.'

"Prior to the acquisition of Centenario, construction of the Franke Mine facilities had been substantially completed, however, Centenario's project funding issues had delayed mechanical completion and commencement of mining at the level required to meet the original schedule. Commissioning has now commenced, including crushing and water testing of the SX/ EW plant. The mining contractor is currently preparing crushed rock overliner for the leach pad and is drilling on the ore body for final definition of underground workings, after which stripping will commence. There are always risks and challenges in the start-up phase, however we believe these can be managed and expect that the operation will start ramping up by the middle of the year. A new optimized schedule and mine plan is being developed, as is an exploration programme."

Paul Blythe concludes; "The copper market is beginning to find some support as economic stimulus programs are announced and as some of the less well understood drivers, particularly scrap metal, come into play. We are cautiously optimistic that there will be a resumption of growth with an increase in end-use demand, particularly in China. Within a few months, Quadra will have three producing mines and with a strong balance sheet, we believe that the Company is well positioned to sell copper into the rising market that we expect to see going forward."

A summary of the financial statements together with the Management Discussion and Analysis ("MD&A") are provided below. The complete financial statements and the MD&A will be available at www.quadramining.com and www.sedar.com.

Associated File: http://www.quadramining..com/i/pdf/Q1_2009_FS.pdf: 85 KB in size, approx. 17 seconds to download at 56.6Kbps

Associated File: http://www.quadramining.com/i/pdf/Q1_2009_MDA.pdf: 166 KB in size, approx. 32 seconds to download at 56.6Kbps

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