August 17, 2010 / 3:15 PM / 7 years ago

Scorpio Mining posts Q2 loss on higher costs

* Q2 loss/shr C$0.01 vs C$0.00 yr-ago

* Expects to meet Q3 throughput target of 90,000 tones

* Rev up 39 pct to C$6.5 mln

* Quarterly cash operating costs $50.11 per ton

Aug 17 (Reuters) - Canadian mineral explorer Scorpio Mining Corp SPM.TO posted a quarterly net loss, hit by higher operating costs, sending its shares down nearly 7 percent.

The company expects to achieve its third-quarter throughput target of 90,000 tonnes, and said it sees its 2010 throughput and produced metals targets to be within reach.

For the second quarter ended June 30, net loss was C$1.3 million ($1.25 million), or 1 Canadian cent per share, compared with net earnings of C$433,910, or breakeven per share, a year ago.

Revenue rose 39 percent to C$6.5 million.

For the second quarter, ore milled was 69,138 tonnes, up from 42,425 tonnes a year ago, despite the failure of one of two ball mills at its Nuestra Senora facility in Mexico.

Cash operating costs for the quarter rose to $3.5 million, or $50.11 per ton, from $1.9 million, or $44.55 per ton, for the same period last year.

Shares of Vancouver, British Columbia-based Scorpio, which have lost nearly 11 percent of their value in the last three months, were trading at 70 Canadian cents Tuesday morning on the Toronto Stock Exchange. They touched a low of 68 Canadian cents earlier in the session. ($1=1.043 Canadian Dollar) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Roshni Menon)

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