July 2, 2010 / 4:55 PM / 8 years ago

UPDATE 1-Scorpio Mining cuts Q2 throughput view, shares fall

* Q3 production expected to meet target of 90,000 tons

* Budgeted throughput target for FY10 remains unchanged

* Shares fall as much as 7 pct

July 2 (Reuters) - Canada’s Scorpio Mining Corp SPM.TO cut its second-quarter throughput view as a result of ball mill failure at its Nuestra Senora mill facility in Mexico.

Scorpio — primarily focused on the development of its fully owned silver-zinc-copper-lead Nuestra Senora project — said throughput for the second quarter is expected to be about 23 percent lower than the prior target of 90,000 tons.

“Accordingly, mill head grades have been increased in order to offset the decrease in total metal production and lessen the impact on revenues for the second quarter,” Chief Executive Peter Hawley said in a statement.

The company said a crack in the ball mill A trunnion at the facility required a shut down of the mill, limiting processing throughput to ball mill B.

Scorpio added that repair and full resumption of ball mill A is expected by mid-July, and that third-quarter production is expected to meet the previously budgeted target of 90,000 tons.

Shares of Vancouver-based Scorpio were trading down 4 percent at 64 Canadian cents Friday on the Toronto Stock Exchange. They touched a low of 62 Canadian cents earlier in the day. (Reporting by Isheeta Sanghi in Bangalore; Editing by Roshni Menon)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below