TORONTO, CANADA–(Marketwire – Oct. 27, 2011) –
All amounts in Canadian dollars unless indicated otherwise
Inmet (TSX:IMN) announces third quarter net income from continuing operations of $101 million compared to $68 million in the third quarter of 2010.
Third quarter highlights
Earnings from operations were $116 million this quarter compared to $102 million in the same quarter of last year. This is the result of our continuing ramp up at Las Cruces and a significant increase in pyrite sales volumes at Pyhäsalmi, offset somewhat by higher operating costs, and lower realized copper prices at Çayeli this quarter. A high proportion of Çayeli’s sales this quarter were not yet finalized so they were valued using September 30 forward prices.
We recognized foreign exchange gains of $30 million in the quarter, mainly on the cash, and long-term bonds we hold in US dollars.
Our cash flow provided by operating activities was $121 million this quarter. This represents an increase of $41 million over the third quarter of 2010, mainly because our net working capital was lower and because of the higher production from Las Cruces. Reduced working capital reflects lower accounts receivable at Çayeli and Pyhäsalmi related to the timing of collections from customers and a decrease in metal prices at the end of this quarter.
Las Cruces produced 11,400 tonnes of cathode copper in the third quarter, including a record 4,500 tonnes in August. Reactor performance and reliability improved this quarter, and by the end of September, all eight reactors had operated reliably for 30 consecutive days. We expect cathode copper production of approximately 4,700 tonnes for October, and anticipate reaching production design capacity by the end of the year.
We continue to await ESIA approval for the Cobre Panama project. The government’s review and assessment process has been methodical and thorough. Our final step in the process this quarter was to submit our responses to the second round of questions posed by the Panamanian environmental authority and other consulting ministries and the public file indicates that the Panamanian government has completed its technical review.
Read the full news release here.
