Quadra FNX Mining Limited has released its first quarter 2011 financial and operational results. The company recorded first quarter earnings of USD 168 million compared to earnings of USD 55 million for the previous year. The higher earnings in the current quarter were driven by a USD 134 million pre tax gain on the disposition of Gold Wheaton shares, higher average copper prices and the inclusion of the Sudbury operations following the merger with FNX. These factors were partially offset by lower sales volumes at Robinson and Carlota.
Adjusted earnings for the first quarter totaled USD 51.8 million or USD 0.27 per share as compared to USD 55.3 million or USD 0.56 per share for the previous year. Unusual items included a gain related to the sale of Gold Wheaton shares, a loss on derivatives, a gain on marketable securities and a leach pad inventory write down.
Operating and Financial Summary
| Item | Q1 11 | Q1 10 | Change |
| Revenues | 268.8 | 197.5 | 36.1 |
| Adjusted earnings | 51.8 | 55.3 | -6.3 |
| Adjusted earnings per share | 0.27 | 0.56 | -51.8 |
| EBITDA | 243.7 | 78.4 | 210.8 |
| EBITDA per share | 1.28 | 0.79 | 62.0 |
| Earnings for the period | 167.7 | 55 | 204.9 |
| Basic earnings per share | 0.88 | 0.55 | 60.0 |
| Diluted earnings per share | 0.85 | 0.54 | 57.4 |
In USD millions, except per share data and production data
Mr Paul Blythe president & CEO of Quadra FNX said that "Our strong financial results continue to be driven by a favorable copper price environment as well as increased copper production resulting from our expanded asset base. In the quarter we completed the sale of our Gold Wheaton shares for cash proceeds of USD 295 million and we have subsequently entered into a customary support agreement with respect to our equity holding in Far West Mining Limited, from which we could potentially realize a pre tax gain of approximately CAD 60 million."
He added that "Our underground operations remain on track and we continue to make progress at our open pit mines with the expectation of a stronger second half of the year. During this quarter, we continued to focus on completing the internal Sierra Gorda Financing Study and advanced our partnership and financing discussions. We are still driving towards having a partnership and financing structure in place by mid 2011 allowing us to commence construction and achieve production in 2014."
Mr Blythe concludes that "We also recently announced an inferred resource estimate for our Victoria project which has established this deposit as one of the most significant discoveries made in the Sudbury district in the past 40 years. Given the significance of this deposit, Quadra FNX is targeting the commencement of shaft sinking in 2012, with first production in 2017. Along with Sierra Gorda in Chile, Quadra FNX now has two long life, low cost development projects in mining friendly jurisdictions that will shape the future of our Company."
