VANCOUVER – Copper and gold producer First Quantum Minerals Ltd. (TSX:FM) had a US$ 120-million profit in the third quarter, as revenue increased 12 per cent from the year-earlier period.
The profit, including US$ 90.9 million to common shareholders and US$ 29.6 million to non-controlling interests, amounted to 20 cents per share or 30 cents per share on an adjusted basis — missing analyst expectations.
Analysts had projected 36 cents per share of net income or 38 cents per share on an adjusted basis, according to estimates compiled by Thomson Reuters.
A year earlier, First Quantum reported a loss of US$ 104.9 million or 29 cents per share with US$ 594.4 million of revenue.
The Vancouver-based company said it benefitted from a high copper price but that was partially offset by lower output and higher costs. The company also announced Tuesday that its 2011 annual output will be lower than expected.
Copper sales fell to 71,443 tonnes, from 79,408, but net realized copper prices increased to $ 3.54 per pound. The company also sold 47,458 ounces of gold, up from 44,934 ounces a year earlier, but produced less gold than it sold.
Gold output fell to 41,468 ounces in the three months ended Sept. 30 from 46,718 ounces in the third quarter of 2010.
The company said Tuesday that it now expects to produce 265,000 tonnes of copper and 175,000 ounces of gold in 2011 — down from the previous estimate of 280,000 tonnes of copper and 190,000 ounces of gold.
First Quantum currently produces copper, gold and sulphuric acid from operations in South America, Europe, Africa and Australia.
The company said last week that it expects to be among the world’s top 10 nickel producers by mid 2012 after its projects in Australia and Finland begin commercial operation.
The Ravensthorpe project in Australia and Kevitsa in Finland are expected to produce about 49,000 tonnes of nickel annually once commercial operations begin.
Local news from metronews.ca/vancouver
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