August 13, 2009 / 3:26 PM / in 8 years

UPDATE 1-Copper output pulls Quadra to loss but shares rise

* Q2 loss $0.08/shr vs year-before profit $1.11/shr

* Revenue nearly halved on weaker copper output, prices

* Shares rise 7.2 percent to C$12.55 (In U.S. dollars, unless noted)

TORONTO, Aug 13 (Reuters) - Quadra Mining QUA.TO said on Thursday it fell to a loss in the second quarter due to weaker copper production and prices and a $17 million derivatives loss.

However, its shares were up 7.2 percent as cash flow topped expectations, while copper prices rallied to a 10-1/2 month high.

The Canadian company lost a net $7.3 million, or 8 cents a share, in the quarter ended June 30. That compared with a profit of $65.4 million, or $1.11 a share, in the year-before period.

Revenue was nearly halved to $95.6 million from $180.6 million as copper output dropped 33 percent to 29.7 million pounds, while the realized price for the metal plunged late last year as global demand dried up.

Gold production was also weaker, falling by 57 percent to 18,031 ounces.

Quadra warned in July that production at both its Robinson mine in Nevada and Carlota mine in Arizona would lag forecasts due to difficulties gaining access to high grade ore, disappointing processing rates, and difficulties with pit walls at both operations.

But despite the sharp drop in production and revenue, one analyst said the miner’s cash flow was well above his expectations.

Cash flow fell 73 percent to $24.4 million, or 26 cents a share, beating the 7 cents a share expected by George Topping at Blackmont Capital.

“This is a very good result given the production issues,” he said in a note.

The company’s shares, which have more than quadrupled this year as copper prices have recovered from last year’s plunge, were up 85 Canadian cents at C$12.55 on the Toronto Stock Exchange.

The shares were also helped by copper prices that jumped to their highest level in nearly a year on Thursday.

The Vancouver, British Columbia-based company bought Centenario Copper earlier this year for Centenario’s copper project in Chile.

Quadra had a cash balance of $124 million at the end of the quarter, and hopes to eventually produce 500 million pounds of copper per year. The miner expects to produce between 175-180 million pounds of copper this year.

$1=$1.09 Canadian Reporting by Cameron French; editing by Peter Galloway

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