FNX Mining Company Inc. reported record results for the third quarter of 2006. The Sudbury miner's McCreedy West Mine generated quarterly revenue of $53 million and net earnings of $20.5 million.
The results were attributed to increased production, lower operating costs and strong commodity prices.
Terry MacGibbon, FNX Mining's President and Chief Executive Officer said: "The continuing quarter over quarter operating improvements and operating cost reductions are particularly impressive in this era of severe worldwide capital and operating cost increases and, even though we are incurring significant capital expenditures putting two more mines into production and continuing to explore the Levack Footwall discovery, we continue to maintain a very strong balance sheet as our strong cash flows are nearly sufficient for the Company to fund all capital expenditures from on-going operations."
The company is planning to bring its Levack Footwall deposits into production in 2007. Before the end of 2007, FNX Mining also expects to begin production from its Podolsky footwall copper-nickel-precious metal 2000 Deposit. With all three mines in operation in 2008, total production is expected to reach 1.4 million tons of ore per year.
Average realized prices for nickel and copper respectively were US $14.20 and US $3.60 per pound.
During the third quarter of 2006, the company mined and shipped a total of 165,306 tons of ore resulting in the sale of 2.3 million pounds of nickel, 2.6 million pounds of copper and 7,935 ounces of precious metals. The company realized revenues of US $14.20 per pound of nickel sold and had cash costs, net of by-product credits, of a negative US$0.07 per pound of nickel sold.
At the Levack Mine, work is progressing on the shaft hoisting and ore handling systems, including hoist modernization, loading pocket, headframe dump and underground crushing. Shipments of preproduction and development ore are expected later in the year with full mine production expected in 2007.
Level rehabilitation also progressed as planned. Shaft sinking at Podolsky is now completed, and installation of the loading pocket, shaft changeover and surface infrastructure is progressing well. The project is scheduled to start development from the 2450 Level in the 4th quarter, and work has started on surface preparation for ventilation and mine secondary egress.