Quadra Mining 2008 Year End And 4th Quarter Statement

Quadra Mining Ltd. announced net earnings of $38,609 or $0.61 per share (basic) for the year ended Dec. 31st, 2008 compared to net earnings of $134,545 or $2.80 per share (basic) for the year ended December 31, 2007. Net earnings in 2008 were impacted by the substantial fall in copper prices in the second half of the year, as well as a $96 million write down of the Malmbjerg project ($1.52 per share) that was recorded in the fourth quarter of 2008. Operating cash flow before working capital increased slightly to $166,431 or $2.64 per share in 2008 compared to operating cash flow of $162,525 or $3.34 per share in 2007. During the year 2008, Quadra recorded revenues of $488 million from the sale of 147.2 million pounds of copper and 127 thousand ounces of gold.Paul Blythe, President and CEO of Quadra comments, "Looking at our operations, 2008 was certainly our most successful year so far. Robinson's 2008 production was a record for both copper and gold at 160 million lbs and 138 thousand ounces respectively. The higher copper production was achieved while containing total operating costs at similar levels to 2007. This combination of increased production and cost containment led to unit costs of $1.15 per pound of copper produced in 2008. We also successfully commenced operations at the Carlota mine and while we produced our first metal there in December, first revenues at Carlota were recognized in February of this year.""With respect to the 2008 financial results, the significant decline in the copper price from $2.91 per pound on September 30th to $1.33 at December 31st had a major impact on both earnings and cashflow. The Company's cash balance was reduced to $108 million at year-end due to the impact of cash repayments to customers for provisional price adjustments which totalled $112M in the fourth quarter. These repayments are normal course under our sales contracts, but the amount was exceptional due to the unprecedented fall in the copper price in the second half of 2008."Paul Blythe continues, "The Company's earnings fell significantly as a result of the negative mark to market pricing adjustments of $85 million, of which $65 million related to third quarter sales. We also recorded a $96 million write down of the Malmbjerg project due to recent declines in molybdenum prices, the weak credit and financial markets, and the suspension of activities at the project. These factors together caused a loss of ($1.94) per share for the fourth quarter, and annual earnings of $0.61 per share compared to $2.80 per share last year."Paul Blythe concludes, "Despite the impact of provisional pricing adjustments in the fourth quarter, we ended the year with a strong cash balance and no debt. Our immediate focus is on riding out the downturn in the economy, so that we're in a strong position to sell metal into future higher price markets, and our strong balance sheet is a key component of this."Click here to read the full release.