July 25, 2012 / 11:04 PM / 5 years ago

Lundin profit falls on lower metals prices, higher costs

July 25 (Reuters) - Canada’s Lundin Mining Corp on Wednesday reported a fall in second-quarter profit, citing lower metal prices and higher costs.

The base metals miner earned $44 million, or 8 cents per share, in the quarter ended June 30, compared with $60 million, or 10 cents per share, in the year-ago period.

Sales fell 6 percent in the quarter to $172.3 million, it said in a statement.

Average metal prices for copper, zinc and lead for the quarter were 14 percent lower than last year, Lundin said.

The company produced some 32,400 tonnes of zinc and 16,936 of copper in the quarter. Its 24 percent share of production from Freeport-McMoran Copper and Gold Inc’s Tenke Fungurume mine in the Democratic Republic of Congo (DRC) totaled 8,632 tonnes of copper.

The Tenke project, which is operated by Freeport McMoRan , is in the midst of an expansion to boost total annual output to 195,000 tonnes of copper cathode. The expansion is expected to be completed in 2013.

Shares of the Toronto, Ontario-based company, which have lost more than a fifth of their value in the past six months, closed at C$3.96 on Wednesday on the Toronto Stock Exchange.

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