EXPLORER and developer Equinox Minerals has returned to profit in the first half of 2010, saying the result was due to higher copper production and lower costs.
Shares in the Zambia-focused Equinox, which also has uranium interests, rose after it revealed a slightly lower than expected net profit of $US105.97 million ($A118.23 million) in the first six months to June 30.
This compared to a $US99.3 million loss in the comparable period of 2009. Analysts had expected a profit of about $US120 million.
One analyst said the result was good although the company missed earnings expectations because it was forced to defer come copper concentrate sales.
''It is not an operational issue, and those earnings will be made up through sales exceeding production next half, I would say,'' he said.
''The key point from the result is the cash costs in the second quarter were quite a bit lower than the market was expecting.
''Whether it is sustainable, that is the big question,'' he said. June quarter cash costs were $1.19 a pound of copper, a record quarterly low for the company.
