Shares of Quadra FNX rose more than 7 percent on Monday morning after the Canadian base metal miner reported a large increase in quarterly copper production.
Vancouver-based Quadra said its second-quarter production rose 20 percent from the previous quarter at its mines in the United States, Canada and Chile.
The company, which is expected to report quarterly financial results on Aug. 10, said copper output rose due to improved grades and other operational initiatives.
Quadra said output from its Robinson mine in Nevada, its biggest mine, is expected to rise in the latter half of this year as it begins to mine higher grade portions of the deposit.
The company also reiterated that full-year copper output will be around 240 million pounds, give or take 10 percent.
Second-quarter output rose to 55 million pounds, up from 46 million pounds in the first quarter. Nickel production was flat at 2 million pounds, while precious metal production in the period rose 3.8 percent to 27,000 ounces.
Analysts cheered the latest production results as Quadra’s performance has failed to impress investors this year. Its shares, which touched a high of C$17.55 in January, fell as low as C$12.40 in March.
“We think the Q2/11 production results are positive and we expect additional operational improvements in the second half of the year,” said RBC Capital Markets analyst Adam Schatzker, in a note to clients.
Shares of the company were up C$1.06 at C$16.12 in early trading on the Toronto Stock Exchange on Monday.
© Thomson Reuters