Re: News Release - Thursday, May 13, 2010
Title: Quadra Mining Ltd. Announces Strong 2010 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 13th, 2010 Quadra Mining Ltd. (the "Company" or "Quadra") (TSX: QUA) announces net earnings of $55.6 million or $0.56 per share (basic) for the three months ended March 31, 2010 compared to $26.7 million or $0.40 per share (basic) for the three months ended March 31, 2009. Earnings in the quarter benefited from strong copper prices as well as increasing sales volumes from the Carlota and Franke Mines. Adjusted earnings, which exclude the impact of derivative losses, gains on marketable securities and tax adjustments, were $55.7 million or $0.56 per share (basic) for the three months ended March 31, 2010 compared to $33.8 million or $0.51 per share (basic) for the same period in the previous year. Operating cash flow before working capital of $72.1 million or $0.72 per share in the first quarter 2010 compares to $55.0 million or $0.83 per share in the same period of 2009. During the first quarter 2010, Quadra recorded revenues of $192.9 million from the sale of 47.6 million pounds of copper and 23,928 ounces of gold.
Paul Blythe, President and CEO of Quadra comments, "Our strong financial results for the first quarter of 2010 were a result of the improved copper price, which increased from $3.33 per pound on December 31, 2009 to $3.56 at quarter end as well as increasing sales volumes and revenues from the Carlota and Franke Mines, which continue to ramp up production. The Robinson Mine had another strong quarter generating approximately 60% of our overall revenues and 75% of our operating income."
"As previously announced, [see Press Release: April 20, 2010] while Robinson performed as planned, weather events at Carlota combined with leach recovery and earthquake issues at Franke, challenged site personnel during the quarter. At Carlota, the rainfall events and resulting impact on access to ore and on solution chemistry is expected to continue to affect production in the second quarter. The mine has done an excellent job of managing the stormwater, while meeting the requirements of the environmental permits. Stripping continued throughout the quarter and ore mining recommenced at the end of the quarter. The mine plan going forward has been revised and allows for increased metal production for the balance of the year. At Franke, the recovery issue is not atypical for a heap leach operation and a number of measures have been put in place to improve copper recovery, including reducing heap height, increasing leach solution application rates and acid cure additions, ore blending and crush size optimization. Construction has begun on two additional leach pads earlier than originally scheduled to ensure that there is adequate leach capacity going forward and these changes are expected to have a beneficial effect on copper production in the third and fourth quarters. The major setback as a result of the earthquakes in Chile was damage to an electrowinning transformer, with repairs expected by July."
Paul Blythe, concludes: "We continue to move forward on the two transformative transactions previously announced, namely the proposed merger with FNX Mining, with shareholder votes to be held next week on May 19th, 2010, and the formation of the Strategic Joint Venture with State Grid International Development Limited, where negotiations are advancing on the definitive agreement. The culmination of these transactions will establish a new, mid-cap copper mining company with five existing mining operations in low political risk jurisdictions and a company that has the full spectrum of skill sets required to provide further growth, both organically within the Sudbury basin and at Sierra Gorda, as well as the financial strength and critical mass to continue further consolidation."
The Annual and Special Meeting of the shareholders of Quadra Mining Ltd. is to be held on Wednesday, May 19th, 2010 at 10:00 am (ET) at The Fairmont Royal York, 100 Front Street West, Toronto, Ontario in the British Columbia Room.
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/2010-Q1- MDA.pdf
- 315 KB in size, approx. 1 minute to download at 56.6Kbps
Copyright � 2010 QUADRA MINING LTD. (QUA) All rights reserved. For more information visit our website at
http://www.quadramining.com/ or send email to
ir2@quadramining.com ..
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QuadraFNX Mining
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PRODUCER |
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CODE : QUX.TO |
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ISIN : CA74733X1069 |
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QuadraFNX is a nickel and gold producing company based in Canada. QuadraFNX produces nickel, gold, copper, palladium, platinum and silver in Canada and in Chile, and holds various exploration projects in Canada and in Guinea. Its main assets in production are MCCREEDY WEST MINE, ROBINSON MINE, LEVACK MINE, PODOLSKY, VICTORIA - INCO, CARLOTA MINE, VICTORIA, LEVACK, FALCONBRIDGE MINE, MORRISON DEPOSIT (LFD) LEVACK FOOTWALL and KIRKWOOD in Canada and FRANKE MINE in Chile and its main exploration properties are TYRANITE, NORMAN, FAWCETT TWP and FOOTWALL in Canada. QuadraFNX is listed in Canada and in Germany. Its market capitalisation is CA$ 2.9 billions as of today (€ 2.2 billions). Its stock quote reached its lowest recent point on December 05, 2008 at CA$ 1.97, and its highest recent level on March 07, 2012 at CA$ 14.99. QuadraFNX has 191 502 000 shares outstanding. |