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DJ Equinox Cuts '09 Copper Output Forecast By 30%; Ups Cash Costs

Fri. August 07, 2009; Posted: 04:21 AM
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LONDON, Aug 07, 2009 (Dow Jones Commodities News via Comtex) -- EQNMF | Quote | Chart | News | PowerRating -- Zambia-focused copper producer Equinox Minerals Ltd. (EQN.T) Thursday slashed its forecasted copper output for 2009 by over a third to 110,000-120,000 metric tons because of equipment shortages and lower ore recovery.

The problems are expected to be "of a short-term nature," and haven't impaired the company's flagship copper mine Lumwana, the company said in its second-quarter report.

Equinox previously forecasted its 2009 output at 170,000 tons.

The company reported a 57% drop in copper output at Lumwana in the second quarter. Production fell to 24,413 tons, down from 57,085 tons in the first quarter.

Equinox also raised its cash cost estimate for 2009 to $1.35-$1.50 a pound, up from its forecast last quarter of $1.15/lb.

Its operating profit of $36.1 million in the second quarter was offset by non-cash losses on copper futures hedges, leading to a net loss of $38.7 million.

-By Matthew Walls, Dow Jones Newswires; +44 (0)20 7842 9412; matthew.walls@dowjones.com

-0-

(MORE TO FOLLOW) Dow Jones Newswires

08-07-09 0421ET

For full details for EQNMF click here.

    


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