FNX experiences 26.2M in losses

FNX Mining Company Inc. (TSX:FNX) is off to a rough start this year, with first-quarter losses totaling $26.2 million.
The losses come after FNX took action in the fall of 2008 when the company suspended nickel production and reduced its work force by almost 45 per cent.
Despite the losses, the company is making the right decisions, said Terry MacGibbon, chair and CEO of FNX.
"Operating and financial results for the first quarter of 2009 demonstrate that our decisions and spending controls are working,” said MacGibbon, in a release. “Most expenditures are at or below budget. Cash operating margins returned to acceptable levels and totaled $12.6 million and $148 per ton of ore sold during the quarter. Capital expenditures are below budget at $13.2 million and our cash balance remains strong at $114.6 million."
The company plans to continue mining and stockpiling ore while Vale Inco, which owns the processing facilities, runs its eight week shutdown during the summer.
The collective agreement between Vale Inco and the United Steelworkers Local 6500, which represents the workers, expires on May 31.
In the event of a Vale Inco strike, MacGibbon says FNX is considering several possible alternatives, but hasn't released the details yet.
“I am confident that our actions not only positioned the company to survive the downturn, but to prosper when the markets improve," said MacGibbon.