Inmet shares jump 6.9 percent on strong quarter

Tue Jul 31, 2012 10:53am EDT
 
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(Reuters) - Shares of Inmet Mining Corp rose more than 6 percent on Tuesday, the day after the Canadian base metal miner reported strong second-quarter earnings.

Inmet reported a 74 percent increase in quarterly profit after the market close on Monday due to higher copper sales volumes and a foreign exchange gain.

The company's shares were up 6.9 percent at C$40.70 on Tuesday morning on the Toronto Stock Exchange.

Inmet's copper production was 54 percent higher in the quarter on better-than-expected grades at its Las Cruces mine in Spain and its Cayeli mine in Turkey. The higher grade helped lower cash costs for the quarter.

The Toronto-based miner maintained its 2012 forecasts for copper and zinc production, but said it expected slightly higher costs for copper treatment and refining this year than in 2011.

Inmet, which is developing the $6.2 billion Cobre Panama copper-gold project in Central America, also said it is in talks to sell a portion of future precious metal production from the mine to help finance its 80 percent share of development costs. The company raised $1.5 billion for the project development in May through a debt offering.

Inmet holds an 80 percent stake in Cobre Panama, while the remaining interest is owned by a South Korean consortium that includes Korea Resources Corp and LS-Nikko Copper Inc.

(Reporting by Julie Gordon; Editing by Peter Galloway)