August 6, 2009 / 2:02 PM / 9 years ago

UPDATE 1-Lundin Mining posts profit on low costs, shares up

* Rebounds to profit of $0.08/shr from loss of $0.28/shr

* Falling costs help offset weak metals prices

* Shares rise 8.8 percent

* (In U.S. dollars, unless noted)

TORONTO, Aug 6 (Reuters) - Lundin Mining (LUN.TO) posted a quarterly profit on Thursday, rebounding from a year-before loss as lower costs helped offset the impact of weaker metal prices.

The result, which topped analysts’ estimates, boosted the company’s shares by 8.8 percent to C$3.95 in early Toronto trading.

The Canadian base metals miner earned $43.5 million, or 8 cents a share, in the second quarter ended June 30. That compared with a loss of $108.4 million, or 28 cents a share, in the year-before quarter, when results were hurt by a $152.7 million impairment charge.

Analysts polled by Reuters had expected, on average, a profit of 3 cents a share.

Quarterly revenue dropped 34 percent to $194.8 million due to plunging prices for metals, particularly copper and zinc.

Operating costs fell 32 percent to $93.5 million, reflecting lower materials and contractor costs, revisions to mine operating plans and the closure of the Galmoy mine in Ireland.

$1=$1.07 Canadian Reporting by Cameron French; editing by Peter Galloway

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