Guidance had been withdrawn for Candelaria in Chile earlier this month, with the copper-gold operation remaining suspended due to strike action over a wage dispute.

The company reported attributable net earnings of US$122.4 million, or 17c per share, for the September quarter, up from $26.4 million a year earlier.

Gross profit was $199.3 million, up from $128.6 million, which Lundin said was primarily due to higher realised metal prices and price adjustments, partially offset by lower sales volumes.

Guidance revision

Lundin cut 2020 guidance for Chapada in Brazil from 51,000-56,000t of copper to 45,000-50,000t, and from 85,000-90,000 ounces of gold to 80,000-85,000oz, assuming 60 days of production around 30% capacity after the mill suffered electrical damage in September. It expects a return to full production late this year.

Neves-Corvo's copper guidance went from 35,000-40,000t down to 32,000-34,000t, and expected zinc output from 70,000-75,000t to 70,000-72,000t, reflecting lower grades and ore availability.

In Sweden, Zinkgruvan's zinc guidance was narrowed to 72,000-74,000t.

Only the guidance for its Eagle copper-nickel mine in the US remained unchanged.

Zinc plans

Lundin said it would restart the Zinc Expansion Project at Neves-Corvo in Portugal in early 2021, having shelved it in March "to reduce the risk" of COVID-19.

A fatality at the mine had prompted safety stand-downs across the organisation during the quarter.

"Though we have had challenges on several fronts over the past month, each has been met with immediate action plans," president and CEO Marie Inkster said.

"And lastly, Eagle and Zinkgruvan continue to perform well, taking advantage of the improving nickel, copper and zinc prices, as evidenced by Eagle's record cash cost and free cash flow generation."

The company had a cash and net debt balance of about $280 million and $65 million respectively at October 28.

It declared a dividend of C4c per share.

Its shares (TSX: LUN) closed down 3.4% to $8.04, still towards the top of a one-year range of $4.08-$1.59, capitalising it about $734 million (US$552 million).