July 27, 2010 / 1:15 PM / in 8 years

REFILE-UPDATE 1-Inmet quarterly profit hit by forex losses

(Refiles to correct spelling of Inmet in headline)

* Q2 EPS C$0.86 vs C$1.37 year ago

* Revenue up 1 pct at $215 million

TORONTO, July 27 (Reuters) - Inmet Mining Corp IMN.TO said on Tuesday its quarterly profit fell 27 percent, largely due to foreign exchange related losses.

The Canadian base metals miner said it earned C$48.4 million, or 86 Canadian cents a share, in the second quarter. That compares with a profit of C$66.5 million, or C$1.37 a share in the year-before period.

The company said operating earnings in the quarter rose to C$87 million, from C$85 million, a year earlier.

Revenue rose 1 percent to $215 million, driven by higher realized copper and zinc prices in the quarter.

Inmet said last week that second-quarter copper cathode production was hurt by equipment failures at its Las Cruces project in Spain. The company said it produced 6,600 tonnes of copper cathode during the second quarter, compared with a target of 12,400 tonnes.

The company has cut its outlook for copper cathode production at Las Cruces to 20,000 to 30,000 tonnes for the year from 36,400 tonnes due to continued operational issues at the project.

Inmet’s largest project is the Cobre Panama copper-gold project in Panama.

The Toronto-based company estimates that the $5 billion project will produce an average of 255,000 tonnes of copper a year. It is expected to begin production in the third quarter of 2015. (Reporting by Euan Rocha and Julie Gordon, editing by Dave Zimmerman)

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