Canadian copper miner Quadra Mining Ltd said quarterly production at its Nevada-based Robinson mine and Arizona-based Carlota mine was below expectations, and cut its full-year production outlook for both mines.
For the second quarter, combined production at the mines was 29.7 million pounds of copper and 18,031 ounces of gold.
Quadra's Robinson mine at Ely, Nevada produced 22.9 million pounds of copper, down 49 percent from 44.6 million pounds in the year-ago quarter.
It (Q2 production) was below my expectations, significantly below actually, BMO Capital Markets analyst David Cotterell told Reuters.
Vancouver-based Quadra said 2009 production at Robinson mine is expected at 130 million pounds of copper, down from its earlier expectation of 140 million pounds.
Production at the miner's Carlota mine was below mine plan estimates as a result of lower-than-scheduled ore mined and also because of lower-than-planned leaching rates.
Cotterell, who has a market perform rating on Quadra's stock and a C$8 price target, said the production cut was more substantial at Carlota, since it is a new operation, adding that it takes time to get things up to speed.
Quadra now expects to produce 35 million pounds of copper from Carlota, down from its prior view of 50 million pounds.
The company, however, maintained its gold production forecast of 100,000 ounces from the Robinson mine.
The copper price continued to strengthen during the quarter which will result in some positive mark-to-market adjustments when the quarterly earnings are announced, however this will be offset by the sales volume which was particularly low, Chief Executive Paul Blythe said in a statement.
Quadra shares were down 10 percent at C$7.19 in morning trade on the Toronto Stock Exchange. They touched a low of C$6.86 earlier in the session. (Reporting by Isheeta Sanghi in Bangalore; Editing by Himani Sarkar and Gopakumar Warrier)