March 6, 2009 / 2:06 PM / 9 years ago

Quadra posts loss on write down, low copper prices

* Q4 loss of $1.94 a share vs year earlier EPS of $0.14

* Results include writedown of $1.52 per share (In U.S. dollars)

TORONTO, March 6 (Reuters) - Quadra Mining QUA.TO reported a quarterly loss on Friday, citing a writedown related to its molybdenum project in Greenland and a steep drop in copper prices.

The net loss was $126 million, or $1.94 a share. That compares to a profit of $5.5 million, or 14 cents a share, in the year-before period.

The Vancouver-based company said its results included a writedown of $1.52 per share on its Malmbjerg project in Greenland as recent declines in molybdenum prices, and the weak credit and financial markets, led to the suspension of the project’s activities.

Quadra said the fall in the price of copper from $2.91 per pound on Sept. 30 to $1.33 at Dec. 31 had a major impact on its earnings and cash flow.

Due to the fall in copper prices, the company said its fourth-quarter revenues include negative pricing adjustments of $65 million related to third-quarter sales. It also said it recorded a negative price adjustment of $20 million related to fourth-quarter shipments.

For those reasons, Quadra said revenues from concentrate sales were -$7,058 compared to $81,667 for the fourth quarter of 2007.

The company said it met its 2008 revised production guidance, producing 160 million pounds of copper and 138,000 ounces of gold.

Quadra mines primarily from its Robinson mine in Nevada. ($1=$1.28 Canadian) (Reporting by John McCrank, editing by Dave Zimmerman)

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