Company Comments
Karl-Axel Waplan, President and CEO of the Company said, “During the period up to the end of April, Lundin Mining has announced two major transactions. We have entered into an agreement with Canadian listed base metals producer Rio Narcea Gold Mines, Ltd. (“Rio Narcea”) and offered to acquire for cash all of the outstanding shares and warrants in Rio Narcea. We have also entered an agreement with Tenke Mining Corp. (“Tenke”) to merge. Rio Narcea will, following completion of the transaction, with immediate effect contribute to group cash flow from its Aguablanca nickel mine in Spain. Tenke offers a highly promising project in the medium to longer term through its holding in the Tenke Fungurume project, which is one of the largest high-grade undeveloped copper-cobalt deposits in the world, with a planned production start-up in late 2008. Turning to first quarter results this year our earnings for the quarter were lower than expected due to fewer shipments and strong production volumes in Neves-Corvo and Zinkgruvan which led to a temporary build-up in inventories at these two operations.”
(For complete report see attached file)
