Reuters reported that shares of Lundin Mining fell more than 7% after the company reported an 80% drop in Q3 profit and cut its production outlook for the year.

The Canadian miner's earnings, released after markets closed on Wednesday were hit by lower base metal prices, lower grades at its Neves Corvo copper mine in Portugal and operational issues at a zinc mine in Sweden.

Lundin trimmed the 2011 output forecast for Neves Corvo to 70,000 tonnes of copper. It also marginally lowered its overall zinc and lead output forecast for the year.

Mr Paul Conibear CEO of Lundin Mining said that production at Neves Corvo which is the company's main copper mine will remain lower for at least a few years. Last year we did 80,000 tonnes from Neves, this year nominally 70,000, next year you can see that it's obviously a decline step change to that. It would be prudent to assume similar levels to next year for a few years moving forward.

Lundin's share of copper production at the Tenke Fungurume mine in Democratic Republic of Congo which is operated by copper and gold miner Freeport McMoran was 15,419 tonnes in the Q3. Lundin shares slipped 7.43% to CAD 4.11 on the Toronto Stock Exchange on the gloomy outlook and weaker quarterly earnings.

(Sourced from Reuters)