International mining company Quadra FNX is reporting a boost in its first-quarter earnings for 2011, citing $168 million (88 cents per share) in profits compared to $55 million (55 cents per share) in 2010.
In a news release, the company attributes the increase to “a $134-million pre-tax gain on the disposition of Gold Wheaton shares, higher average copper prices and the inclusion of the Sudbury operations following the merger with FNX.”
The company produced 46 million pounds of copper, 25,000 ounces of total precious metals (TPMs) and two million pounds of nickel during the quarter, the release notes.
Revenues in general increased to $269 million from $198 million, a rise of 205 per cent.
Quadra FNX president and CEO Paul Blythe credits the company's favourable financial position to strong copper prices and increased copper production from its expanded asset base.
He notes the sale of the company's Gold Wheaton shares netted it cash proceeds of $295 million. Additionally, Quadra FNX could potentially realize a pre-tax gain of $60 million, following a customary support agreement regarding its equity holding in Far West Mining Ltd.
“Our underground operations remain on track and we continue to make progress at our open pit mines with the expectation of a stronger second half of the year,” he says in the release.
“During this quarter we continued to focus on completing the internal Sierra Gorda Financing Study and advanced our partnership and financing discussions,” Blythe adds. “We are still driving towards having a partnership and financing structure in place by mid-2011, allowing us to commence construction and achieve production in 2014.”
In April, the company announced a resource estimate at its Victoria development project in Sudbury totalling 12.5 million tonnes grading 2.3 per cent copper, 2.2 per cent nickel and 8.5 grams per tonne of precious metals.
Blythe called it “one of the most significant discoveries made in the Sudbury district in the past 40 years.”
The company plans to sink a shaft at the property in 2012, with production slated to begin in 2017.
The company's Sudbury-based operations include McCreedy West, Levack (which includes Morrison) and Podolsky mines.
Development projects include the Sierra Gorda copper-molybdenum project in Chile, the Victoria project in Sudbury, and the Malmbjerg molybdenum development project in Greenland.
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