Quadra FNX Announces A 9% Increase In Q3 2011 Copper Production
VANCOUVER, BC - Quadra FNX Mining Ltd. reported that consolidated payable production for the three months ended September 30 increased 9% compared to Q2 2011 and 30% compared to Q1 2011 and totaled 60 million pounds of copper, 26 thousand ounces of total precious metals ("TPMs") and 3 million pounds of nickel.
Paul Blythe, President & CEO comments; "This is our strongest quarter since 2009, driven by Robinson and continuing strong performance from our Sudbury operations. We are seeing continuing and significant improvements in production at Robinson. The various measures that we have taken are delivering increased flexibility and productivity. The result is that in September we broke both the daily mining record and monthly milling record. However, we did experience slope stability issues that required remediation and adjustments to the mine plan that have affected our ability to reach a portion of the higher grade material at the bottom of the pit.
"With approximately US$1.0 billion dollars in cash we remain comfortably positioned to weather the current downturn in the copper price. We will continue to develop Sierra Gorda and Victoria and to increase operating flexibility, so that we are well positioned to take advantage of the higher copper prices that we believe will inevitably return."
Production from the Robinson operation was impacted by localized slope stability issues but continued to improve as mining transitioned into the lower benches of the Ruth pit and begun to access higher grade ores. The five trucks that were moved from Carlota to Robinson are now fully operational. In September the mine achieved a one day record ex-pit mining rate of 257 thousand tonnes (284 thousand tons) and a record monthly average milling rate of approximately 44,000 tonnes (48,500 tons) per day.
In Sudbury, copper production at all three operations continues to be at or above expectations. The Company delivered approximately 55,000 tonnes of contact nickel ore from McCreedy West to Xstrata, which was milled in August as a trial lot. Discussions with Xstrata for the treatment of additional ore are ongoing. The Company continues to mine this material and the 2012 business plan includes the mining and shipment of McCreedy West nickel ores, providing nickel prices are favourable.
Mining volumes at Franke have returned to planned levels and the new stacker is on site and currently undergoing dry commissioning. Recovery optimization programs and metallurgical testing of lower acid consuming ore from the nearby the China deposit are also progressing. At Carlota, the planned changes to improve the cost structure (i.e., reduced mining rate, reduced manpower, conveyor stacking) are in place.
The Company expects 2011 consolidated copper production to be at the lower end of its previously stated guidance range of 240 million pounds +/- 10%.
Annual production from Robinson is now estimated to total approximately 95 - 100 million pounds of payable copper, below the previous guidance range of 105 to 120 million pounds due to the slope stability issues experience in Q3 2011 which resulted in a re-sequencing of the mine plan and delays in accessing a portion of the higher grade material originally expected to be mined in Q4 2011.
As a result of declining metals prices, the Company estimates a pricing adjustment related to prior quarter shipments will decrease Q3 2011 revenue by approximately US$6 million. Based on the Q3 2011 quarter end copper price of US$3.24/lb, Quadra FNX estimates a cash repayment of approximately US$20 million for provisional payments received from customers for the Q3 2011 shipments.
The company's address is Suite 2414, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49185, Vancouver, BC V7X 1K8, 604-689-8550, fax: 604-689-8556.