August 14, 2008 / 2:00 PM / in 9 years

UPDATE 1-Quadra Mining profit rises 78 pct on higher output

(Adds details, in U.S. dollars, unless noted)

TORONTO, Aug 14 (Reuters) - Quadra Mining’s QUA.TO quarterly profit rose 78 percent, as copper and gold production and prices jumped from the year-before period, the Canadian miner said.

Quadra also said it was on the hunt for corporate acquisitions and warned of potential difficulties in permitting part of its key Robinson mine in Nevada.

Net income for the second quarter ended June 30 was $65 million, or $1.05 a share, up from $36.6 million, or 76 cents a share, in the year-before quarter.

Analysts polled by Reuters had expected a profit of $1.22 a share, before exceptional items.

Revenue for the quarter rose 28 percent to $180.6 million million, as production of copper concentrate climbed to 44.6 million pounds from 32.2 million pounds, while gold output rose to 42,348 ounces from 25,893 ounces.

Cash costs per pound of copper were 91 cents a pound in the quarter, down from $1.58 a pound a year before, when using the gold production as an offset to the copper costs.

Quadra mines from the Robinson mine and also owns projects in Arizona, Chile and Greenland.

The company expects to produce 150 million pounds of copper and 115,000 ounces of gold from Robinson this year.

However, Quadra said recent hydrological work on the mine’s Ruth pit has shown that additional permitting will be needed to dispose of excess water from the surrounding aquifer.

This could delay the development of the pit, which is expected to be the mine’s primary source of ore from 2010 onward, the company said.

Quadra’s shares fell 18 Canadian cents to C$15.85 on the Toronto Stock Exchange in early trading.

Reporting by Cameron French; editing by Janet Guttsman

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