August 11, 2010 / 2:32 PM / 8 years ago

UPDATE 1-Farallon Mining says to lower Q3 throughput rates

* Q2 profit $2.0 mln vs $6.2 million in Q1

* Rev up 4 pct sequentially

* Shares down 2 percent

Aug 11 (Reuters) - Farallon Mining Ltd FAN.TO reported a 68 percent sequential drop in second-quarter profit, hurt mainly by a charge and an unrealized foreign exchange loss, and said it was lowering throughput rates for the third quarter, sending its shares down 2 percent.

Farallon Mining, which earlier said it would operate at 1,500 tons per day (tpd) for the first six months and then increase to 2,000 tpd by July, is now reducing throughput rates to 1,500 tpd during the third quarter.

For the second quarter, the company reported net profit of $2.0 million, down from $6.2 million in the first quarter.

The latest quarter results were hurt in part by a non-cash charge of $2.1 million and an unrealized foreign exchange loss of $2.0 million, the company said in a statement.

Gross revenue for the company — which operates a zinc mine, G-9, at Campo Morado — rose 4 percent sequentially to $39.1 million.

Production was up 10 percent to 1,816 tpd over the first quarter.

Shares of the company were down 10 Canadian cents at 43 Canadian cents Wednesday on the Toronto stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Prem Udayabhanu)

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