Skip to main content

The Globe and Mail

Inmet Mining’s earnings fall on after-tax foreign exchange loss

An aerial view of the Cobre Panama open-pit copper development in Donoso, Panama.


Hostile takeover target Inmet Mining Corp. reported lower net income for the fourth quarter of 2012 on after-tax foreign exchange losses.

The Toronto-based miner had a profit of $38.8-million or 56 cents per share for the quarter, down from $46.5-million or 67 cents per share in the year earlier period.

That widely missed the $1.17 per share analysts polled by Thomson Reuters were expecting.

Story continues below advertisement

Gross sales were up 11 per cent to $259.9-million in the quarter from $233.4-million during the same 2011 period.

Inmet produced five per cent more copper, 16 per cent more zinc and six per cent more pyrite than it did a year earlier.

The $19-million foreign exchange loss amounted to 27 cents per share, mainly on U.S. cash held in euro-based entities.

Excess cash balances are held in U.S. currency, which Inmet plans to use to construct its Cobre Panama project.

Inmet's board had rejected a hostile $5.1-billion takeover bid by First Quantum Minerals Ltd. That bid expires at on Feb. 27.

Inmet shares closed down 2.4 per cent to $66.93 on the Toronto Stock Exchange.

Inmet is a Canadian-based global mining company that produces copper and zinc. It has three wholly-owned mining operations in Turkey, Spain and Finland, along with an 80 per cent interest in Cobre Panama currently under construction.

Story continues below advertisement

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨