Lundin Mining reveals 2012-2014 production guidance
Lundin Mining forecasts a 25% increase in total copper production by 2014, with both zinc and nickel output also expected to increase.
Posted: Monday , 12 Dec 2011
RENO, NV -
CORRECTED AND UPDATED 12/12/11--Toronto's Lundin Mining announced Monday its production guidance for 2012-2014 including total attributable copper production increases of 86,000 to 92,000 tonnes for 2012, 107,000 to 117,000 tonnes for 2013, and 108,000 to 117,000 tonnes for 2014.
Zinc production is expected to continue to grow progressively year-over-year as Neves Corvo zinc production continues to ramp up in Portugal. Nickel production is also expected to increase in 2013 as the Spanish mine Aguablanca resumes full-scale production in late 2012.
In a statement Paul Conibear, Lundin CEO, said, "We are very focused on improving our performance and meeting and improving on current production and cost targets."
"We have added depth both corporately and at the operations to facilitate better reliability from our mines," he noted. "Lundin Mining is in a unique position as we offer meaningful near-term production growth to copper, zinc and nickel, all of which is expected to be fully-funded from operational cash flow going forward."
Lundin's zinc production outlook is 2012 output of 109,000 to 125,000 tonnes of zinc, 125,000 to 135,000 tonnes for 2013, and 145,500 to 155,000 tonnes for 2014.
The company projected total lead production of 34,500 to 40,000 tonnes next year, and 32,000 to 35,000 tonnes for both 2013 and 2014. Total nickel production is forecast at 500 to 1,000 tonnes for 2012, 5,000 to 7,000 tonnes for 2013, and 6,000 to 7,000 tonnes for 2014.
Capital expenditures for 2012 are expected to be US$410 million, up from 2011's guidance of US$290 million. Among the projects planned for next year are Lombrador Phase One at Neves Corves as well as tailings and water storage capacity increases; and new investment in the Tenke Fungurume cobalt-copper operation in the Democratic Republic of Congo.
Exploration expenditures are expected to increase from $43 million this year to $50 million next year, including $34 million to be spent at Neves-Coro.
"As we enter 2012, we are very well pleased to continue to increase output with a good balance sheet, several internal optimization opportunities and a strong exploration focus," said Conibear.
The company is also pursuing "the additional near term and existing production assets with the intent of acquiring value accretive investments complimentary to our business," he added.