February 13, 2008 / 2:54 PM / 10 years ago

Inmet shaves copper outlook to reflect JV in Spain

TORONTO, Feb 13 (Reuters) - Inmet Mining Corp IMN.TO issued a press release correction on Wednesday that lowers its 2008 copper-production outlook, and clarifies that it is not the sole owner of the Las Cruces mine in Spain.

On Tuesday, the Canadian miner’s stock jumped as much as 4 percent after it said it expected copper production to jump about 40 percent to 112,000 tonnes this year, boosted in large part by Las Cruces, which is to start production in the fourth quarter.

Inmet now says it expects its 2008 “share of copper production to increase by approximately 30 percent to 104,000 tonnes once Las Cruces begins production,” which is expected in the fourth quarter of 2008.

Inmet produced 79,300 tonnes of copper last year.

Las Cruces, in Spain’s Andalucia region, is an open pit copper mine owned 70-percent by Toronto-based Inmet and 30-percent by a subsidiary of U.S.-based diversified holding company Leucadia National Corp.

Included in Inmet’s correction on Wednesday was a revision of its 2008 production objective for Las Cruces from 27,000 tonnes of copper to 18,900 tonnes, reflecting the company’s 70-percent stake.

Inmet was not immediately available for comment.

A spokeswoman for Leucadia National confirmed the New-York-based firm has a 30-percent stake in Las Cruces, but would not comment on Inmet’s production correction.

The market seemed unfazed by the adjustment to Inmet’s outlook, pushing the company’s stock up C$2.15, or 3.2 percent, to C$69.30 amid a broader advance on the Toronto Stock Exchange.

$1=$1.00 Canadian Reporting by Jonathan Spicer; Editing by Peter Galloway

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