lundin mining sees itself as partner of choice

Lundin Mining Sees Itself as “Partner of Choice” for Juniors

By Craig Wong
22 Feb 2007 at 02:00 PM GMT-05:00


VANCOUVER (CP) -- Lundin Mining Corp. [TSX:LUN; AMEX:LMC] is continuing to look for acquisitions after taking over EuroZinc Mining last year as it seeks to add reserves, CEO Colin Benner said Thursday.

''The merger has brought together the financial prowess of four profitable mines and more importantly the great value in combining the management teams of both companies,'' Benner told a conference call with analysts.

Benner said Lundin wants to make itself the ''partner of choice'' for junior resource companies looking to make the next step.

Lundin, which keeps its books in U.S. dollars, reported a profit of $63.6 million or 27 cents per share for the three months ended Dec. 31. That compared with $14.2 million or 12 cents per share a year earlier.

Sales climbed to $236.1 million from $63.8 million due to the merger with EuroZinc Mining, completed Oct. 31, and surging prices for zinc, the company's main commodity, along with major increases in the price of lead and copper.

The merger with EuroZinc created a company with four producing mines in Portugal, Sweden and Ireland and a fifth scheduled to come into production this year. Lundin also has a development-stage project in Russia and investments in Iran and Eritrea.

Lundin's search for acquisitions follows as a rash of consolidation last year, headlined by the takeover of Falconbridge Ltd. by Swiss miner Xstrata PLC [LSE:XTA] and Inco by Brazilian company CVRD [NYSE:RIO; TSX:N].

Analysts have suggested Inmet Mining Corp. [TSX:IMN], HudBay Minerals Inc. [TSX:HBM] or Aur Resources [TSX:AUR] might attract Lundin. However the recent deals by the company have all been much smaller.

For the full year, Lundin earned $152.9 million or $1.01 on revenue $539.7 million. That compared with $30 million or 26 cents on revenue of $192.1 million in 2005.

Lundin also disclosed that a worker died last Sunday after suffering head injuries in a fall from a platform at the company's Galmoy zinc-lead mine in Ireland.

Effective March 31, Benner will step aside as CEO while remaining as vice-chairman, with Karl-Axel Waplan, currently president and chief operating officer, assuming the CEO title.

Lundin shares closed up 1 cent at C$12.60 today on the Toronto Stock Exchange.

© The Canadian Press 2007


Very interesting tha Lundin are still talking about their project in Iran and that they see themselves as a partner of choice.

andrewe