Thursday, Lundin Mining Corp. (LMC, LUN.TO), a processor of base metals, reported a net loss for the second quarter, hurt by impairment charges as well as a decline in revenues.
The Vancouver, Canada-based company reported a net loss of $108.42 million or $0.28 per share for the second quarter, compared to a profit of $153.78 million or $0.54 per share in the previous year.
Unaudited net earnings, before impairment charges and related taxes, were $56.2 million or $0.14 per share for the second quarter 2008.
Two analysts polled by First Call/Thomson Financial expected earnings of $0.17 per share for the quarter.
Sales for the quarter declined to $294.08 million from $319.94 million in the previous year, driven by lower zinc sales volume and a 42% reduction in the average zinc price when compared to the same quarter a year earlier.
Sales at Neves-Corvo, Portugal dropped to $193.58 million from $202.39 million, while at Zinkgruvan, Sweden, the decline was to $34.07 million from $58.44 million. Aguablanca, Spain, which did not have sales in the previous year, recorded $35.86 million in sales in the just concluded period.
Sales from Galmoy, Ireland slipped to $19.54 million from $34.89 million and Storliden, Sweden recorded a sales decline to $11.03 million from $23.67 million in the previous year.
Expenses for the quarter surged to $374.06 million from $175.03 million, largely due to impairment charges of $152.80 million related to the Aljustrel mine.
Year-to-date, the company reported a net loss of $29.60 million or $0.08 per share, compared to net income of $205.86 million or $0.72 per share posted last year. Sales rose to $599.82 million from $513.86 million in the same period last year.
LMC is currently trading at $4.81, down $0.35 or 6.78%, on 1.39 million shares.
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