Quadra FNX Announces a 20% Increase in Second Quarter 2011 Production
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/25/11 -- Quadra FNX Mining Ltd. ('Quadra FNX' or the 'Company') (TSX: QUX) announces its second quarter 2011 production and sales results. Combined payable production for the three months ended June 30 totaled 55 million pounds of copper, 27 thousand ounces of total precious metals ('TPMs') and two million pounds of nickel.
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Production Sales
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Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q2 2011
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Copper (Million lbs)
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Robinson (1) 25 25 20 21 22
Carlota (2) 7 7 4 6 5
Franke (2) 10 8 7 9 6
Morrison (3) 6 7 9 10 10
Podolsky (3) 5 8 5 7 7
McCreedy West (3) 1 1 1 2 2
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Total 54 56 46 55 53
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Copper price at beginning of
period ($US/lb) (4) $ 4.27
Copper price at end of
period ($US/lb) (4) $ 4.22
TPM (kozs)
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Robinson (1) 15 15 6 7 8
Morrison (3) 3 4 6 8 8
Podolsky (3) 5 11 7 6 6
McCreedy West (3) 8 8 7 6 6
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Total 31 38 26 27 28
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Total Nickel (Million lbs)
(3) 2 2 2 2 2
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1. Payable Cu and Au produced in concentrate
2. Payable Cu produced in cathode
3. Shipped payable metal
4. The average price used to value provisionally priced copper
Note: The table includes pre-production ore from the Morrison Deposit.
Paul Blythe, President & CEO comments; 'Our production profile improved through the second quarter as optimization initiatives at our operations began to deliver positive results and we expect this trend to continue in the second half of the year. The ongoing measures to improve flexibility at Robinson are on track, and Franke is now back at full mining capacity. Overall, our consolidated copper production is expected to be within the previously stated guidance of 240 million pounds /-10%. We have also made progress on a potential re-start of our primary nickel capacity at our Sudbury operations with a waiver obtained from Vale. Our team remains focused on our existing operations and advancing our significant growth profile.'
SECOND QUARTER OVERVIEW:
At Robinson, the removal of mud from the bottom of the Ruth Pit was completed approximately four weeks ahead of schedule and the secondary access ramp remains on track for completion in August. As previously indicated, the production profile at Robinson is back-end weighted, benefiting from access to higher grade material at the bottom of the pit and the removal of the existing north ramp, as well as additional haulage capacity. As the third quarter started, the grade profile at Robinson increased significantly versus the second quarter, and ore grades are expected to further improve in the fourth quarter.
In Sudbury, copper production at all three operations was above plan. During the quarter the Company reached an agreement with Vale, whereby Vale waived its right to the high-magnesium oxide (MgO) nickel ores from McCreedy West for a period of three years. The Company has subsequently entered into negotiations for the sale of this ore to another party and nickel ore mining has recommenced at McCreedy West to provide a bulk test sample.
At Franke, the transition to owner mining and plant maintenance, as well as the purchase of all additional mining equipment, was completed during the quarter, so that mining volumes at Franke continued to increase as planned. Following the completion of the transition from truck dumping to conveyor stacking at Carlota, the Company is evaluating options going forward.
Q2 FINANCIAL RESULTS AND CONFERENCE CALL DETAILS: The second quarter financials will be issued on August 10, 2011 prior to market open. A conference call to discuss the second financial results has been scheduled for August 10, 2011, at 10am ET (7am PDT). Dial in details of the accompanying conference call will be issued under separate press release.
ABOUT QUADRA FNX LTD. (TSX: QUX)
Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. Quadra FNX produces copper, nickel and precious metals from its operating mines: Robinson in Nevada, Carlota in Arizona, Franke in northern Chile, and Levack, which includes the Morrison Deposit, Podolsky and McCreedy West in Sudbury, Ontario. The Company has two key development projects: the Sierra Gorda project, a copper-molybdenum project in Chile, and the Victoria project, a polymetallic project in Sudbury, Ontario. Quadra FNX employs approximately 1,900 people in North and South America.
FORWARD-LOOKING INFORMATION
This Press Release contains 'forward-looking information' that is based on Quadra FNX's expectations, estimates and projections as of the dates as of which those statements were made. This forward-looking information includes, among other things, statements with respect to the Company's future recovery levels, future production levels, cash and total costs of production of copper, gold and other minerals, timing of expected sales and final pricing of concentrate sales . Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'believe', 'estimate', 'expect', 'intend', 'should', 'scheduled', 'will', 'plan' and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra FNX's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, and developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to:
-- risks associated with the mineralogy and block model assumptions at all
mines and projects including, in particular the complex Robinson mine;
-- uncertainties related to the extent to which historical mining
activities at Robinson have removed mineral material expected to be
present;
-- uncertainty relating to the leaching rate achieved at Carlota;
-- risks related to maintaining current operating parameters at Podolsky;
-- uncertainties related to actual capital costs, operating costs,
production schedules and economic returns associated with the ramp-up of
the Morrison deposit;
-- risks associated with Quadra FNX's off-take agreement with Vale,
including the risk of potential adjustment to final payable metal and
processing cost terms;
-- uncertainties related to the Quadra FNX's ability to secure a third
party processing for high magnesium oxide (MgO) contact nickel ores from
McCreedy West
-- uncertainties relating to availability of updated equipment for Franke
and the leach recovery rate achieved at Franke;
-- uncertainties related to the construction quality and structural design
at Franke;
-- risks relating to the performance of the mining rate at Franke;
-- risks relating to the testwork underlying the Feasibility Study
described in the Sierra Gorda Feasibility Study Technical Report;
-- risks associating with ongoing litigation at Sierra Gorda and with
potential future litigation at Sierra Gorda and other projects;
-- uncertainties related to the amount of funding required to achieve full
production levels at Franke and Carlota and at the Morrison deposit;
-- uncertainties related to the possible recalculation or reduction of the
Company's mineral reserves and resources;
-- risks that Quadra FNX's title to its property could be challenged,
including potential challenges from First Nations with respect to the
Sudbury operations;
-- risks associated with Quadra FNX's dependence on transportation
facilities and infrastructure;
-- risk associated with labour relations;
-- risks associated with fluctuations in costs of operating supplies and
other inputs;
-- uncertainties related to actual capital costs, operating costs and
expenditures, production schedules and economic returns from the
Company's mining projects;
-- inherent hazards and risks associated with mining operations;
-- inherent uncertainties associated with mineral exploration;
-- risks associated with Quadra FNX being subject to government regulation,
including changes in regulation;
-- risks associated with Quadra FNX being subject to extensive
environmental laws and regulations, including changes in regulation;
-- increases in off-site transportation and concentrate processing costs;
-- risks related to the stability of mine pit walls;
-- uncertainties related to fluctuations in copper and other metal prices;
-- uncertainties related to the current global financial conditions; and
-- uncertainties related to fluctuation in foreign currency exchange rates.
A discussion of these and other factors that may affect Quadra FNX's actual results, performance, achievements or financial position is contained in the filings by Quadra FNX with the Canadian provincial securities regulatory authorities, including Quadra FNX's Annual Information Form. Forward-looking statements are based on assumptions management believes to be reasonable. Although Quadra FNX has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Quadra FNX disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
Contacts:
Media and Investor Relations Contact:
Nawojka Wachowiak
Vice President, Investor Relations
416- 642-9209