FNX To Boost Production In 2010

FNX Mining (FNX-T) forecasts production from its Sudbury mining assets in 2010 will reach 891,000 tons of ore shipped, a 31% increase over the company’s 2009 production plan.

Capital expenditures in 2010 are anticipated to come in at $75.2 million for operations, $13.3 million for exploration and $15.7 million for greenfield exploration.

The company also expects that its mine-site cash operating costs to produce a pound of copper, net of by-product credits, will be about US60¢ per lb.

Of its total payable metal for 2010, 48.1 million lbs. will be copper, 7.7 million lbs. will be nickel and 74,500 oz. will be combined platinum, palladium and gold, the company outlined in a statement.

Operations in 2009 were impacted by a shutdown of the company’s primary custom processor, but FNX said it still expects to meet its original 2009 production outlook.

Looking ahead, FNX recently completed the remaining internal ramp development at its Podolsky mine, which will enable the company to lift production 13% to 417,000 tons of copper-precious metal dominant ore in 2010.

FNX will continue to focus on its deposits that are dominant in copper and precious metals, and expects to start commercial production from the upper portions of its high-grade Levack Footwall deposit, or LFD, by the middle of the year.

The LFD is expected to produce a total of 200,000 tons of ore consisting of 146,000 tons of commercial ore and 54,000 tons of preproduction and development ore.

Ore grades at LFD range from 1.35% copper, 1.9% nickel and 1.2 grams total precious metals per tonne in Rob’s Zone at the top of the LFD to 8.8% copper, 1.4% nickel and 7.8 grams total precious metals at the 4000 level of the deposit.

“As the ongoing development allows greater access and production from the middle portions of the deposit, the expected mine grade will increase accordingly,” FNX said.

At Sept. 30, FNX’s liquid assets totaled $409.3 million and included $258.2 million in cash, $151.1 million in investments and no debt.

Over the last year the company’s share price has fluctuated between a low of $2.41 per share on Dec. 24, 2008 and $12.58 on Oct. 14, 2009. At presstime FNX was trading at $11.59 per share.