Copper shipments from Quadra's Carlota project in Arizona have begun, but operations at the Robinson Mine continue to account for the bulk of the Vancouver company's revenues, according to the latest quarterly results.
Operations at Quadra's Robinson Mine continue to account for the bulk of the company's revenues, according to the latest results from the first quarter of 2009. Quadra's overall revenues and net earnings for the quarter were down considerably from the same time a year ago. But quarterly revenues were up from late 2008, thanks to rising copper prices.
In the three-month period ending on March 31, the Robinson sold 34 million pounds of copper and 30,000 ounces of gold, generating $97 million in revenues.
Quarterly revenues from the Robinson's concentrate sales benefited from rising copper prices, which increased from $1.33 per pound in late 2008 to $1.83 per pound by quarter's end.
But the company's overall revenues and net earnings were down considerably from the same time one year ago.
Revenues from the most recent quarter totaled just over $106.3 million, compared with more than $198 million in revenues from the first quarter of 2008. Net earnings dropped from more than $76.56 million in the first three months of 2008 to $26.65 million in the same period this year.
Operating income for the first quarter of 2009 totaled more than $46.22 million. But company earnings were impacted by a derivative loss of $8.81 million, or 13 cents per share, which was linked to a decline in the fair value of its copper put options.
At the same time, Quadra's operating cash flow before working capital decreased from more than $95.07 million in the year-ago quarter to $55.01 million.
In other highlights from the last quarter, the company began mining in the Kimberley and Wedge pit areas near Ruth. The move to the new pit areas has lowered the amount of waste tons mined, Quadra President and CEO Paul Blythe said in a May 12 statement.
When combined with strong gold byproduct credits, the reduction in stripping brought the Robinson's cash costs down to 80 cents per pound, according to Blythe.
But the company's annual cost guidance estimates for the Robinson remain unchanged, and Blythe said the company still expects unit costs for the year to be in the range of $1.30 per pound.
Beyond the Robinson, the first shipment of copper cathodes from the Carlota Mine in Arizona was made in February.
First quarter production results at both operations were in line with mine plan estimates. They're currently on track to meet the year's guidance of 140 million pounds of copper and 100,000 ounces of gold from the Robinson, along with 50 million pounds of copper from the Carlota, Blythe said.
Within a few months, production at a third Quadra property is expected to get under way.
In April, Quadra acquired Centenario Copper Corporation and its heap-leach Franke Project in northern Chile.
The Franke's plant has a design capacity of about 66 million pounds per year of cathode copper. With all three operations running, Blythe said he believes the company is well-positioned to sell copper into a rising market.
“The copper market is beginning to find some support as economic stimulus programs are announced and as some of the less well-understood drivers, particularly scrap metal, come into play,” he said. “We are cautiously optimistic that there will be a resumption of growth with an increase in end-use demand, particularly in China.”
Source: Ely Daily Times
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