Lundin Mining Corporation (TSX: T.LUN, Stock Forum) reported its first quarter results Thursday, including an unaudited net loss for the quarter of $8.6 million, or two cents per share.
The company says its operating earnings were $38.2 million, down from $182.9 million in the first quarter of 2008, while Lundin reported a cash outflow from operations of $63.3 million, compared to a small inflow of $3.5 million in the first quarter of 2008.
Sales for the quarter were $123.4 million, down 60% compared to sales in the first quarter of 2008 of $305.7 million, entirely related to lower metal prices, says the company.
"This quarter has probably represented the bottom for us in terms of cash flow and earnings. We paid out $68.1 million in customer settlements that related to last quarter's severe price falls and, post this, all our mining operations are now cash flow positive,” says Phil Wright, the company’s president and CEO.
"The recent equity raising, coupled with a limited-term copper hedge, has removed the liquidity concerns we had at the start of the quarter and we are now in a position to be able to finalize a suitable debt facility in the near future. We expect this new facility to be in the order of $225 million, an amount that we judge to be more than adequate to meet our needs over the next few years,” he added.
In terms of its outlook, Lundin says capital expenditures for the year are expected to be around $130 million.
On the Lundin Bullboard, Spiker72 said: “Estimates were for a net loss of $0.045. Lundin came in at -$0.02! Market likes[sic].”
Shares of Lundin were up 2.9% to $2.83 Thursday.
