Lundin Mining expects gold collar contract losses of $12m in Q2
TSX- and Nasdaq-listed mining major Lundin Mining expects to report certain impacts to its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) and adjusted earnings per share for the three months ended June 30.
Ahead of publishing its second-quarter results on August 5, Lundin advises that items of significant impact in the quarter include unaudited realised losses on gold collar contracts of about $12-million.
The company is expected to recognise certain noncash items that will impact the company's earnings but not adjusted Ebtida, including unrealised gains of $31-million related to the evaluation of gold collar contracts owing to a reduction in the gold forward curve.
Additionally, the company does not expect unrealised losses on foreign currency derivative contracts to have any significant impact.
The second quarter's revenue is expected to be positively impacted by provisional pricing adjustments on prior period concentrate sales of about $79-million. These adjustments primarily include upward adjustments to prior period copper and molybdenum sales.
Lundin Mining has operations in Argentina, Brazil, Chile and the US, producing copper, gold, silver, nickel, molybdenum, zinc and lead.
