* Q1 EPS C$1.39 v. C$0.97 a year earlier
* Revenue up 16 percent at C$294.9 million
* Metal prices down, copper sales volumes up
April 26 Canadian base metal miner Inmet Mining
Corp reported a 62 percent increase in quarterly profit
on Thursday as higher copper production outweighed a drop in
zinc output and lower metal prices.
Net income from continuing operations for the quarter ended
March 31 was C$96.1 million ($97.7 million), or C$1.39 a share,
up from a year-earlier adjusted profit of C$59.4 million, or 97
Canadian cents a share.
Net income attributable to shareholders fell 33 percent to
C$96.1 million, or C$1.39 a share. That compared with C$142.8
million, or C$2.33 a share, in the first quarter of 2011 when
profit was boosted by the sale of the company's 18 percent stake
in Ok Tedi Mining.
Analysts, on average, had expected earnings of C$1.28 a
share, according to Thomson Reuters I/B/E/S.
Revenue rose 16 percent to C$294.9 million on higher copper
Copper production rose 40 percent to 24,800 tonnes from
17,700 tonnes in the year-earlier period, as output increased at
Inmet's Las Cruces mine in Spain and Cayeli mine in Turkey. Zinc
production fell 29 percent to 15,100 tonnes.
The higher copper output offset a drop in metal prices in
the first quarter, Inmet said. Copper prices on the London Metal
Exchange (LME) fell 14 percent to an average of $3.77 per pound,
while zinc prices were down 16 percent at $0.92 per pound.
The company maintained its copper and zinc sales guidance
for 2012, but warned that production costs could rise, primarily
on higher electricity and royalty charges. Copper cash costs
rose 5 percent to $1.00 per pound in the first quarter.
Inmet competitor Lundin Mining Corp reported an 18
percent drop in quarterly profit on Wednesday as weaker metals
prices and higher costs hurt results.
Inmet, which owns the Cobre Panama copper project, is in
talks with parties interested in buying a stake in the project.
Inmet plans to sell a 20 percent to 40 percent stake to help it
finance the development costs.
The Toronto-based miner currently owns an 80 percent stake
in the project. As part of a previous agreement, the company
sold a 20 percent stake to KPMC - a joint venture between
LS-Nikko Copper Inc and Korea Resources Corp -
earlier this month.