Quadra Mining Ltd. Announces 2009 Results

 

VANCOUVER, BC - Quadra Mining Ltd. reported net earnings of $80.5 million or $0.89 per share (basic) for the year ended December 31, 2009 compared to $38.6 or $0.61 per share (basic) for the year ended December 31, 2008. Earnings in 2009 benefited from a strong recovery in copper prices which increased from $1.32/lb. to $3.33/lb. over the course of 2009. Earnings in 2009 were also impacted by a $54.5 million accounting loss on derivatives which was also a result of the increasing copper prices in the year. During the year 2009, Quadra recorded revenues of $459.5 million from the sale of 144.7 million pounds of copper and 95,735 ounces of gold.

Earnings for the fourth quarter of 2009 increased to $46.4 million from a loss of $126.1 million in the fourth quarter of 2008, due to higher copper prices and to higher metal sales volumes in the fourth quarter of 2009.

Paul Blythe, President and CEO of Quadra comments, "During 2009 we had to overcome several challenges at Robinson and Carlota, and we still succeeded in delivering solid financial results despite the low copper price during the early part of the year. We are pleased with the overall production of 164.0 million pounds of copper and 98,970 ounces of gold. As previously announced, [see Press Release: January 11, 2010] the operating performance at Robinson and Carlota improved considerably during the fourth quarter and our new Franke Mine achieved commercial production, becoming our third asset to contribute revenue on the statement of earnings."

"Our strong financial results for the fourth quarter 2009 were a result of the improving copper price, which increased from $2.78 per pound on September 30th to $3.33 at year end, and also from strong sales volumes, including the first copper sales from our new Franke mine."

Blythe concluded, "In 2009 we reached our fifth year anniversary as a public Company and with the acquisition of Centenario Copper we brought the Franke project in Chile into operation as our third producing mine. We produced a positive study on Sierra Gorda and our memorandum of understanding to form a Strategic Joint Venture with State Grid International Development would address the funding requirements for the Sierra Gorda project and allow development to proceed rapidly once we have the feasibility study and permits in place. The Company is in a strong position to continue with its growth mandate of becoming a producer of approximately 500 million pounds of copper a year."

The companys address is Suite 2414, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49185, Vancouver, BC V7X 1K8, 604-689-8550, fax: 604-689-8556.