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FNX Mining records $26.5 million 3-Q loss

FNX Mining posted a $26.5 million third quarter loss for their fiscal year ending Sept. 30. During the same period last year, the Sudbury mid-tier miner recorded $12.5 million in earnings.
Northern Ontario Business Staff

FNX Mining posted a $26.5 million third quarter loss for their fiscal year ending Sept. 30.
During the same period last year, the Sudbury mid-tier miner recorded $12.5 million in earnings.

FNX Chairman and CEO Terry MacGibbon attributed the loss to a decline in commodity prices and rapidly changing market conditions.

The company is conserving cash and reducing its 2008 capital spending at the end of the second quarter by $51 million, then further reduced by $11 million in the third quarter.

FNX said the 2009 capital budget hasn't been finalized but it will be reduced and will be limited to satisfy near-term production plans and to ramp up production at its high margin copper-nickel-precious metal deposits at Podolsky and Levack Mines in Sudbury.

In October, FNX temporarily suspended production at its Levack Mine. No layoffs were announced. Affected employees among its 800-person workforce were shifted to other higher value projects. The Levack complex remains open as a logistical cross-roads to handle nickel ore coming from the company's McCreedy Mine and to access other high grade operations such as Rob's Deposit.