Lundin Mining

Copper Market Rebounds — Lundin Mining and Freeport McMoRan Poised to Benefit

Copper stocks have been on the upswing this week as the price of the red metal recently hit a new 3 month high.

Lundin Mining reports higher than expected 2011 copper production

Lundin Mining Corp. (TSX:LUN), a Toronto-based global miner, reports its copper production last year was higher than forecast.

Extending Neves-Coro adds $100m to NPV: Lundin

Extending the Neves-Coro mine in Portugal will add $100 million to the net present value (NPV) and push the life of the mine into 2026, Lundin Mining (TSX:LUN) said today.

The company released the feasibility results for Lombador Phase 1, which plans to exploit the uppper portions of the Lombador zinc/copper ore bodies.

ABB wins contract for new mill drive system at Neves Corvo copper mine in Portugal

ABB, leading power and automation technology group, was recently contracted to supply the drive system for a new semi-autogenous grinding (SAG) mill at Neves Corvo, Portugal.

BHP-Lundin rumour likely much ado about nothing, investors say

Lundin Mining is once again the target of takeover speculation, after the Daily Telegraph fed the rumour mill with talk of JP Morgan advising BHP Billiton and Belgian zinc miner Nyrstar on a joint bid for Lundin.

The market reacted favourably to the speculation on Tuesday, bidding up the stock by 14.5% on the TSX, but seasoned investors in Australia say a takeover by BHP is likely not in the cards.

Lundin hit by production problems, higher costs in Portugal

Lundin Mining Corporation reported on Friday net income of $57.7 million for the second quarter of 2011, up 36% from the same quarter last year.

The numbers were below management expectations after lower than expected metal production and higher unit costs at its flagship Neves-Corvo copper mine in Portugal north of the city of Faro (pictured). Lundin said the Tenke Fungurume mine in the Democratic Republic of Congo, its first venture beyond Europe, should start contributing to cash flows in the third quarter.

Bloomberg: Lundin Mining abandons sales process on low bids; CEO to resign

Lundin Mining has abandoned its plans to sell, saying the bids did not fully value the company, according to a story reported in Bloomberg News. The decision also means CEO Phil Wright will resign; senior vice president of corporate development Paul Conibear will serve as interim CEO.

The bids “did not adequately value the company or its assets,” Lundin said in a statement. “The best way to create shareholder value is to continue to manage and develop the company’s quality assets and to actively seek growth opportunities.”

Lundin Mining betters Q1 net income by $19.3 million

Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) today reported net income of $71.2 million ($0.12 per share) for the first quarter of 2011, an increase of $19.3 million from the $51.9 million ($0.09 per share) for the first quarter of 2010.

“Production for the quarter was in-line with guidance and our production outlook for the year is unchanged. It should be noted however, that the production has come at a higher cost owing to lower than expected average head-grade at Neves-Corvo and milling difficulties caused by wet weather in January,” said Phil Wright, President and CEO. “Caution also needs to be exercised on cost outlook given the on-going weakness of the US dollar.”

China’s Jinchuan silent on media reports regarding Lundin Mining bid

No word yet from China’s Jinchuan Group as to whether the company is officially in the market for Canada’s Lundin Mining.

Canadian media reports claim a consortium headed by Jinchuan, which includes sovereign wealth fund China Investment Corp., was planning a takeover bid for the Canadian base metals miner.

China group in talks to buy Lundin: Globe and Mail

The months-long saga over the future of Lundin Mining took another interesting twist on Friday, when a consortium of Chinese companies jumped in with a potential bid, according to a story in The Globe and Mail. Lundin has been the target of two takeover bids, the first by Inmet Mining, which recently fell through, and the second by Equinox Minerals, which unveiled a $4.8 billion hostile takeover bid to counter the Inmet offer. That deal was derailed when China’s Minmetals Resources tried to acquire Equinox, which has since been acquired by Barrick Gold, which presented a richer offer worth $7.3 billion.