Lundin on track despite first-quarter zinc setback

摘要

Diversified base metal producer Lundin Mining (LUN-T) is on target to meet its guidance this year despite lower-than-anticipated production during the first quarter at its wholly owned Zinkgruvan zinc-lead-copper mine, 200 km southwest of Stockholm, Sweden. Lundin had problems with its backfill system at Zinkgruvan during the fourth quarter of 2012, which led to an adjustment in underground mine sequencing that triggered a drop in throughput and grade for zinc and lead production. As a result, first-quarter operating costs at Zinkgruvan clocked in at US42 cents per lb. zinc compared to a guidance estimate at US20 cents per lb., with production totalling 15,700 tonnes zinc and 6,600 tonnes lead.