Quadra Mining Stock Up on Record Copper and Gold Production
By Craig Wong
09 Apr 2007 at 04:11 PM GMT-04:00
resourceinvestor.com
VANCOUVER (CP) -- Quadra Mining Ltd. [TSX:QUA] said Monday it produced a record amount of copper and gold at its Robinson mine in Nevada in the first quarter, with copper production up 30% and gold up 150% from a year ago.
The news helped send the stock up 65 cents to $12 in afternoon trading on the Toronto Stock Exchange.
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The Vancouver-based miner said Robinson produced 36.6 million pounds of copper in the first-quarter of 2007 and 31,040 ounces of gold.
''We have been able to reap the benefits of continuing high mill throughput and improved recoveries,'' Quadra president Paul Blythe said in a statement.
''Robinson, as a skarn deposit, is difficult and results are likely to be erratic in any month or quarter. Nevertheless, clearly we are making good progress in getting in front of these complexities.''
Gold production has already exceeded half of Quadra's guidance for annual gold production, Blythe said due to higher head grades than estimated in the block model and higher-than-historical recoveries.
''As we gain confidence on sustainability, we will revisit our expectations,'' the chief executive said.
Quadra expects to release first-quarter financial reports on April 23. The average analyst estimate is for earnings of 66 cents per share for the quarter according to Thomson Financial.
In 2006, Quadra earned $32.2 million or 87 cents per diluted share on revenue of $393.3 million. That compared with a loss of $2 million or seven cents per diluted share on revenue of $228.2 million in 2005.
Last month, Quadra made a friendly offer of $34.5 million in stock for International Molybdenum PLC, which owns the high-grade Malmjberg molybdenum project in Greenland.
The takeover proposal is based on InterMoly shareholders receiving one Quadra share for each 36.22 InterMoly shares and InterMoly warrant-holders getting one Quadra share for each 99.23 InterMoly warrants.
Quadra has said Galahad Gold PLC, with 78% of InterMoly's shares and 25% of its warrants, plans to tender to the offer. In addition, InterMoly's board of directors is endorsing the takeover bid.
In addition to a measured and indicated resource containing 560 million pounds of molybdenum, a technical report prepared for InterMoly identifies the development of an open-pit mine that would operate 365 days per year at a scale of 25,000 tonnes per day mill feed.
© The Canadian Press 2007 |
