Quadra Mining Reports Strong 2010 Results
VANCOUVER, BC - Quadra Mining Ltd. reported net earnings of $55.6 million for the three months ended March 31, 2010 compared to $26.7 million for the three months ended March 31, 2009. Earnings in the quarter benefited from strong copper prices as well as increasing sales volumes from the Carlota Mine in Arizona and Franke Mines in Chile. Quadra recorded revenues of $192.9 million from the sale of 47.6 million pounds of copper and 23,928 ounces of gold.
Paul Blythe, President and CEO of Quadra commented, "Our strong financial results for the first quarter of 2010 were a result of the improved copper price, which increased from $3.33 per pound on December 31, 2009 to $3.56 at quarter end as well as increasing sales volumes and revenues from the Carlota and Franke Mines, which continue to ramp up production. The Robinson Mine in Nevada had another strong quarter generating approximately 60% of our overall revenues and 75% of our operating income." "As previously announced, while Robinson performed as planned, weather events at Carlota combined with leach recovery and earthquake issues at Franke, challenged site personnel during the quarter. At Carlota, the rainfall events and resulting impact on access to ore and on solution chemistry is expected to continue to affect production in the second quarter. The mine has done an excellent job of managing the stormwater, while meeting the requirements of the environmental permits. Stripping continued throughout the quarter and ore mining recommenced at the end of the quarter. The mine plan going forward has been revised and allows for increased metal production for the balance of the year. At Franke, the recovery issue is not atypical for a heap leach operation and a number of measures have been put in place to improve copper recovery, including reducing heap height, increasing leach solution application rates and acid cure additions, ore blending and crush size optimization. Construction has begun on two additional leach pads earlier than originally scheduled to ensure that there is adequate leach capacity going forward and these changes are expected to have a beneficial effect on copper production in the third and fourth quarters. The major setback as a result of the earthquakes in Chile was damage to an electrowinning transformer, with repairs expected by July." Paul Blythe, concluded, "We continue to move forward on the two transformative transactions namely the proposed merger with FNX Mining, and the formation of the Strategic Joint Venture with State Grid International Development Limited, where negotiations are advancing on the definitive agreement. The culmination of these transactions will establish a new, mid-cap copper mining company with five existing mining operations in low political risk jurisdictions and a company that has the full spectrum of skill sets required to provide further growth, both organically within the Sudbury basin and at Sierra Gorda, as well as the financial strength and critical mass to continue further consolidation." 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.