re: lundin mining merger
Excellent reference to UCL's project in this article. The CEO of Lundin says that their merger with Eurozinc will allow the company to take on higher risks and exploit their interests in Iran.
No plans to up zinc output much this year at Lundin
Saturday, 2nd September, 2006
LUNDIN Mining said it has no plans to significantly increase zinc production. "We will not be able to increase zinc production much this year," Karl-Axel Waplan, the company's chief executive, said yesterday.
According to Mr Waplan, the company is looking at ways of effecting a 2pc increase in production at its mines in Ireland and Sweden in the future.
Lundin expects to produce about 172,000 tonnes of zinc this year from its three mines, compared with 176,000 tonnes in 2005.
Shareholders
Lundin, which merged with Irish mining company Arcon last year, plans to merge with Canada's Eurozinc in a deal which will value the company at $3bn. EuroZinc shareholders will vote on the proposed deal in October.
Mr Waplan said the link-up will allow the merged company to take on higher risks and better exploit Lundin's base metal interests in Russia, Eritrea and Iran.
Between them, the two companies had cash flow of about $203m in the first half of this year.
Mr Waplan, who will be president and chief operating officer at the new company, said strong zinc and copper prices should leave "profits much higher than last year for both companies".
The price of zinc has risen by about 80pc so far this year, while copper prices have also moved up to record highs.
UCL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
