Vancouver – Second quarter financial and operating results for newly named Lundin Mining Corporation (LUN-T), formerly South Atlantic Ventures, were less than expected owing to a rock fall at the company’s newly acquired Zinkgruan mine in Sweden which affected production and delayed concentrate shipments.
The company made its transition from junior explorer to mid-tier base metals producer at the beginning of June.
The company reported a net income of $202,000 for the second quarter on revenue of $3.09 million compared with $78,000 on -$558,000 in the same period a year ago.
The results for the second quarter were primarily affected by the acquisition of Zinkgruvan from when it was acquired on June 2. Revenues from Zinkgruvan were $3 million and operating expenses were $5.4 million. The mine was plagued by a technical problem that resulted from a hang-up in ore passes which resulted in a rock fall and delays of two planned shipments of concentrate in June.
The net negative impact of the incident on the revenues for June are estimated to be approximately $3 million out of which approximately $1.7 million is due to the delayed shipments which will be recovered in the month of July.
The incident in the mine is also expected to affect earnings in the third quarter due to a reduction in ore production.
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