November 5, 2008 / 3:39 PM / 10 years ago

UPDATE 1-RESEARCH ALERT-UBS cuts Quadra mining to sell

(Recasts; adds details, share movement)

Nov 5 (Reuters) - UBS downgraded Quadra Mining QUA.TO to “sell” from “neutral” on Wednesday, a day after it posted a lower third-quarter profit as weaker copper prices eroded revenue and prompted it to halt two development projects and suspend production forecasts beyond 2008.

UBS, which also cut its price target on the company’s stock by 50 Canadian cents to C$5.00, expects a fourth-quarter loss of 42 cents a share at the company, if spot copper prices remain weak.

Quadra said on Tuesday the sharp decline in copper prices — which have fallen nearly 50 percent since the beginning of July — was an unexpected outcome, and had led to a full review of the company’s plans for 2009 and beyond.

The company said it would not provide production outlook beyond this year until the review was complete.

UBS said visibility on the future of the company’s core Robinson mine beyond 2010 was uncertain, clouded by technical challenges.

Quadra Mining shares were trading down 42 Canadian cents at C$5.34 Wednesday morning on the Toronto Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Pratish Narayanan)

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