Canadian mining company Lundin Mining Corp. said Wednesday it swung to a loss in the fourth quarter because of a weighty impairment charge incurred in two acquisitions.
Its stock tumbled 78 cents, or 10.4 percent, to $6.68 in afternoon trading. Earlier in the session, the shares _ which are down 22 percent since the start of the year _ hit a fresh 52-week low of $6.58.
In the three months ended Dec. 31, the company lost $436.6 million, or $1.11 per share, compared with a profit in the year-earlier period of $62.2 million, or 27 cents per share.
Excluding a one-time non-cash impairment charge of $491.9 million, Lundin earned $55.3 million, 14 cents per share, for the period. The charge stems from Lundin's purchase of EuroZinc Mining Corp., which produces zinc and copper from European mines, and the acquisition of Rio Narcea Gold Mines Ltd., a Spanish business.
For both the fourth quarter and the full year 2007, the company used a higher number of shares outstanding to calculate earnings per share than in the previous periods.
Quarterly revenue increased to $253.1 million from $236.1 million. The company cited increased copper and nickel sales offset lower zinc volumes and prices.
For all of 2007, Lundin lost $154.2 million, or 46 cents per share, compared with a profit of $151.6 million, or $1 per share, in 2006. Annual revenue soared to $1.06 billion from $539.7 million in 2006.
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