Lundin Mining Corp. (TSX:LUN) showed decent first quarter results today despite ongoing industrial action at its Portuguese Neves-Corvo copper mine.
The Vancouver-based company reported US$141.7 million in sales for the first quarter of 2010 compared with US$123.4 million for the same period last year.
Lundin's net income was US$38 million for the quarter compared with a loss of US$8.6 million during the same period in 2009.
President and CEO Phil Wright said the increase was largely the result of stronger metal prices, but the company has run into several operational problems.
"As foreshadowed earlier this year, production for the quarter from our European business was below trend and consequently lower sales volumes and higher unit costs partially offset the gain from strong metal prices," said Wright.
Workers at Neves-Corvo began limited two-hour strikes in February at the start of each shift and demanded 17% salary increases, which management rejected.
Lundin said the action was settled on April 1, but on April 20 the company said workers at Neves-Corvo plan a total stoppage of work from May 5 to May 12.
The company estimates that Neves-Corvo's copper production decreased 7,000 tonnes during the first quarter.
Lundin has also had to contend with adverse European weather conditions that have affected ore processing, and a blocked orepass at its Swedish Zinkgruvan zinc mine.
Lundin's share price range during the last week: between $5.31 and $4.94; 52-week high: $5.77; 52-week low: $2.08.