VANCOUVER – Quadra FNX Mining Ltd. (TSX:QUX), a Vancouver-based copper producer, reported a fat third quarter profit as the company booked a big gain on the sale of a stake in its major copper development in Chile.
Quadra FNX said Thursday it earned nearly US$142.8 million or 75 cents a share in the three months ended Sept. 30.
That compared with earnings of $19.5 million or 10 cents last year.
Revenues rose to $326.2 million from $259.2 million as the company benefited from higher metals production.
Quadra FNX, which reports in U.S. dollars, booked a pre-tax preliminary gain of $293 million in the quarter for the sale of a 45-per-cent stake in its Sierra Gorda copper project in Chile to Sumitomo Corp. of Japan and its metals unit.
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Partially offsetting that gain was $162 million in impairment losses on the Carlota mine in Arizona and the Podolsky mine in Sudbury as well as other charges.
President and CEO Paul Blythe said the company has decided to wind down the Carlota and Podolsky operations to focus on its more promising projects. It will also change the mining plan for its Franke mine in Chile.
“We believe that the best way to achieve this is by optimizing the opportunities at our two flagship operations, Robinson and Morrison, which together contribute over 85 per cent of our operating income, while continuing to deliver on our significant growth pipeline,” he said.
“We have reviewed our other assets and have concluded that, on a risk adjusted basis, we should wind down Carlota and Podolsky. We have also made significant changes to the mine plan for Franke, which will be focused on the China pit that is expected to have lower acid consumption rates. These changes in our portfolio will, in our view, better position Quadra FNX to focus on its core strengths and maximize value.”
Quadra FNX is a mid-tier miner which produces copper, gold and platinum group metals from its operating mines: the Robinson mine in Nevada, the Carlota mine Arizona, Franke mine in northern Chile, and the McCreedy West, Levack and Podolsky mines in Sudbury,
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