Inmet Mining Corporation
TSX : IMN

Inmet Mining Corporation

October 30, 2007 13:56 ET

Inmet Announces 2007 Third Quarter Earnings of $2.38 Per Share

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2007) - Inmet Mining Corporation
(TSX:IMN) -



Highlights

- Higher net income per share

Net income per share this quarter was $2.38 compared to $2.31 for the
same period in 2006.

- Strong operating cash flow per share

Operating cash flow before working capital was $129.5 million or
$2.68 per common share, which is consistent with the same period in
2006.

- Update to our annual production estimates

We produced 19,000 tonnes of copper, 20,400 tonnes of zinc and
55,400 ounces of gold in the third quarter. Our annual production
objectives are: copper 81,200 tonnes, zinc 82,800 tonnes and gold
227,200 ounces.

- Plant construction delay at Las Cruces

Construction of the hydrometallurgical process plant has been delayed
and is now scheduled to be completed in the fourth quarter of 2008.
To manage the impact of this delay, Las Cruces plans to selectively
mine and crush approximately 100,000 to 150,000 tonnes of high grade
chalcocite ore and sell it as direct feed to copper smelters.

We anticipate that the estimated project capital cost of
(euro) 463 million will be increased by (euro) 4 million per month
for owners and construction management costs from April 2008 until
production begins.

- Cerattepe construction started

Project development began this quarter with the construction of the
ramp access, preparation work for the installation of the tramway and
the engineering for the Cayeli mill expansion.

- Petaquilla work is progressing

The drill program began, front-end engineering and design is
advancing and work on the social and environmental assessment is
progressing.


Key financial data
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three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(thousands, except
per share amounts)

Sales
Gross sales $272,293 $301,100 -10% $878,925 $828,958 +6%

Net income
Net income $114,836 $111,582 +3% $353,964 $323,233 +10%
Net income per share $2.38 $2.31 +3% $7.33 $6.71 +9%
Adjusted net
income(1) $114,836 $111,582 +3% $342,234 $299,328 +14%
Adjusted net income
per share(1) $2.38 $2.31 +3% $7.09 $6.21 +14%

Cash flow(1)
Cash flow provided
by operating
activities (before
working capital) $129,536 $129,486 - $372,873 $320,463 +16%
Cash flow provided
by operating
activities per
share (before
working capital) $2.68 $2.68 - $7.72 $6.65 +16%
-------------------------------------------------------------------------

Capital spending $117,989 $49,936 +136% $252,003 $87,040 +190%
-------------------------------------------------------------------------

OPERATING HIGHLIGHTS
Production(2)
Copper (tonnes) 19,000 20,700 -8% 57,600 60,900 -5%
Zinc (tonnes) 20,400 16,500 +24% 59,100 53,100 +11%
Gold (ounces) 55,400 57,900 -4% 166,200 182,800 -9%

Cash costs
Copper (US $ per
pound)(1),(3) $0.28 $0.38 -26% $0.19 $0.36 -47%
Gold (US $ per
ounce)(1) $367 $366 -% $384 $350 +10%
-------------------------------------------------------------------------


as at as at
September 30 December 31
FINANCIAL CONDITION 2007 2006
-----------------------------
Current ratio 6.1 to 1 5.1 to 1
Long-term debt to total capitalization 16% 10%
Net working capital balance (millions) $854 $666
Cash balance (millions) $815 $640
Shareholders' equity (millions) $1,319 $1,073
-------------------------------------------------------------------------
(1) See reconciliation of non-GAAP measures on page 31 to see how these
items are calculated.
(2) Inmet's share.
(3) Cayeli and Pyhasalmi zinc production and Ok Tedi gold production are
included as metal credits.



Third quarter press release


Where to find it

Our financial results .......................... 4
Key changes in 2007 ............................ 5
Understanding our performance .................. 5
Earnings from operations ..................... 7
Corporate costs .............................. 11
Results of our operations ...................... 13
Cayeli ....................................... 13
Pyhasalmi .................................... 15
Troilus ...................................... 17
Ok Tedi ...................................... 19
Status of our development projects ............. 21
Las Cruces ................................... 21
Cerattepe .................................... 22
Petaquilla ................................... 23
Managing our liquidity ......................... 24
Financial condition ............................ 25
Accounting changes ............................. 27
Managing risk .................................. 28
Non-GAAP measures .............................. 31
Quarterly review ............................... 32
Consolidated financial statements .............. 33

In this press release, Inmet means Inmet Mining Corporation and we, us
and our mean Inmet and/or its subsidiaries and joint ventures.



Our financial results

-------------------------------------------------------------------------
(thousands, except three months ended nine months ended
per share amounts) September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------

EARNINGS FROM
OPERATIONS(1)
Cayeli $66,018 $60,347 +9% $190,444 $149,553 +27%
Pyhasalmi 34,101 35,854 -5% 110,433 94,088 +17%
Troilus 2,953 2,115 +40% 9,483 4,805 +97%
Ok Tedi 48,927 60,011 -18% 154,333 163,660 -6%
Other (619) (414) +50% (1,462) (1,368) +7%
-------------------------------------------------------------------------
151,380 157,913 -4% 463,231 410,738 +13%
-------------------------------------------------------------------------
DEVELOPMENT AND
EXPLORATION
Corporate development
and exploration (2,475) (2,708) -9% (5,573) (5,618) -1%
-------------------------------------------------------------------------

CORPORATE COSTS
General and
administration (2,674) (2,618) (7,676) (7,612)
Investment and
other income 6,784 2,257 16,066 6,637
Interest expense (424) (412) (1,286) (1,194)
Income and capital
taxes (37,922) (42,861) (122,355) (103,788)
Non-controlling
interest 167 11 (173) 165
-------------------------------------------------------------------------
(34,069) (43,623) -22% (115,424) (105,792) +9%
-------------------------------------------------------------------------
Net income before
other items $114,836 $111,582 +3% $342,234 $299,328 +14%
Gain on sale of
Wolfden - - 11,730 - +100%
Gain on sale of Izok - - - 23,905 -100%
-------------------------------------------------------------------------
Net income $114,836 $111,582 +3% $353,964 $323,233 +10%
-------------------------------------------------------------------------
Basic net income
per share $2.38 $2.31 +3% $7.33 $6.71 +9%
-------------------------------------------------------------------------
Diluted net income
per share $2.37 $2.31 +3% $7.32 $6.70 +9%
-------------------------------------------------------------------------

Weighted average
shares outstanding 48,278 48,274 - 48,278 48,190 -
-------------------------------------------------------------------------
(1) Sales less smelter processing charges and freight, cost of sales,
depreciation and provisions for mine rehabilitation.



Key changes in 2007

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three months nine months
ended ended see
(millions) September 30 September 30 page
-------------------------------------------------------------------------
EARNINGS FROM OPERATIONS
Sales
Higher (lower) metal prices
denominated in Canadian dollars $(27) $15 7
Higher sales volumes - 20 8
Costs
Lower smelter processing charges
and freight 20 29 10
Higher operating costs - (10) 10
Other - (2)
------------------------------------------------------------------
Increase (decrease) in earnings from
operations, compared to 2006 (7) 52

CORPORATE COSTS
Change in taxes from change in income 8 - 12
Change in tax rates (3) (19) 12
Gain on sale of Wolfden - 12 11
Gain on sale of Izok recorded in
the previous year - (25) 11
Other 5 11
------------------------------------------------------------------
Increase in net income, compared to 2006 $3 $31
------------------------------------------------------------------


Understanding our performance

Metal prices

The following table shows the metal prices, in US dollars and Canadian
dollars, we realized (the prices we realize include finalization adjustments -
see Gross sales on page 7).

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
US dollar metal prices
Copper (per
pound) US $3.62 US $3.60 +1% US $3.37 US $3.35 +1%
Zinc (per pound) US $1.37 US $1.56 -12% US $1.50 US $1.37 +9%
Gold (per ounce) US $580 US $534 +9% US $571 US $511 +12%
-------------------------------------------------------------------------
Canadian dollar
metal prices
Copper (per pound) C$ 3.76 C$ 4.03 -7% C$ 3.74 C$ 3.79 -1%
Zinc (per pound) C$ 1.42 C$ 1.75 -19% C$ 1.67 C$ 1.55 +8%
Gold (per ounce) C$ 603 C$ 598 +1% C$ 634 C$ 577 +10%
-------------------------------------------------------------------------

Exchange rates

Canadian dollar revenue and earnings were lower this quarter and year to
date compared to the same periods last year because of the significant
strengthening of the Canadian dollar relative to the US dollar. This lowered
gross sales by $18 million this quarter, and by $19 million year to date. It
also lowered net income this quarter by $12 million and year to date by
$14 million.
The following table shows the average exchange rates we realized.

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Exchange rates
1 US$ to C$ $1.04 $1.12 -7% $1.11 $1.13 -2%
1 euro to C$ $1.44 $1.43 +1% $1.48 $1.41 +5%
-------------------------------------------------------------------------

Treatment charges and freight

Treatment charges are one component of smelter processing charges. We also
pay smelters for content losses and price participation. Copper treatment
charges have been lower in 2007 than they were in 2006 because we negotiated
more favourable contract terms with smelters. Zinc treatment charges, as
expected, are significantly higher in 2007 than they were in 2006, but lower
price participation more than offset these charges.
The Baltic Dry Index, which monitors shipping rates, hit an all time high
in September 2007 as port congestion and increasing global demand for raw
materials have boosted freight rates.
The following table shows the average smelter processing charges we
realized.

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Smelter processing
charges
Copper (per
pound) US $0.37 US $0.57 -35% US $0.41 US $0.54 -24%
Zinc (per pound) US $0.37 US $0.55 -33% US $0.43 US $0.46 -7%
Freight charges
Copper (per tonne) US $49 US $43 +14% US $45 US $42 +7%
Zinc (per tonne) US $23 US $21 +10% US $27 US $18 +50%
-------------------------------------------------------------------------

Statutory tax rates

The following table shows the statutory tax rates for each of our taxable
operating mines.

-----------------------------------------------
2007 2006 change
-----------------------------------------------
Statutory tax rates
Cayeli 27% 20% +7%
Pyhasalmi 26% 26% -
Ok Tedi 37% 37% -
-----------------------------------------------

The increase in tax rate at Cayeli in 2007 is because we have returned to
accruing for withholding taxes on net income in anticipation of dividend
payments.


EARNINGS FROM OPERATIONS

We calculate earnings from operations by taking the revenues generated
from the sale of metals, less the costs associated with those sales, and then
subtracting depreciation charges for capital investments and provisions for
mine rehabilitation.

1. Gross sales were 10 percent lower this quarter ...

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Gross sales by operation
Cayeli $107,664 $105,916 +2% $337,606 $282,694 +19%
Pyhasalmi 60,427 64,436 -6% 201,574 185,678 +9%
Troilus 24,970 29,274 -15% 81,061 77,515 +5%
Ok Tedi(1) 79,232 101,474 -22% 258,684 283,071 -9%
-------------------------------------------------------------------------
$272,293 $301,100 -10% $878,925 $828,958 +6%
-------------------------------------------------------------------------
Gross sales by metal
Copper $174,338 $195,510 -11% $506,718 $511,117 -1%
Zinc 54,983 57,378 -4% 227,467 182,437 +25%
Gold 33,826 37,544 -10% 111,700 105,808 +6%
Other 9,146 10,668 -14% 33,040 29,596 +12%
-------------------------------------------------------------------------
$272,293 $301,100 -10% $878,925 $828,958 +6%
-------------------------------------------------------------------------
(1) Our 18 percent share of Ok Tedi's sales.


... because of lower copper and zinc prices in the quarter

-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Lower copper prices, denominated in C$ $(12) $(12)
Higher (lower) zinc prices, denominated in C$ (14) 15
Higher (lower) gold prices and other metal
prices, denominated in C$ (1) 12
Higher (lower) sales volumes (2) 35
-------------------------------------------------------------------------
Increase (decrease) in gross sales,
compared to 2006 $(29) $50
-------------------------------------------------------------------------

We record sales using the metal price for sales settled during the
reporting period. For sales that have not been settled, we use an estimate
based on the month we expect the sale to settle and the metal's forward price
at the end of the reporting period. We recognize the difference between our
estimate and the final price by adjusting our gross sales in the period we
settle the sale (finalization adjustment).
We made the following finalization adjustments for sales recorded in the
second quarter of 2007 that were settled this quarter:

- we increased copper sales by US $3 million
- we decreased zinc sales by US $1 million.

At the end of this quarter, the following sales had not been settled:

- 31 million pounds of copper provisionally priced at US $3.64 per
pound
- 26 million pounds of zinc provisionally priced at US $1.40 per pound.

The finalization adjustment we record for these sales will depend on the
actual price we receive on final settlement.


...and because of lower gold sales volume during the third quarter

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Sales volumes
Copper (tonnes) 21,000 22,000 -5% 61,900 60,800 +2%
Zinc (tonnes) 17,900 15,000 +19% 62,800 53,900 +17%
Gold (ounces) 55,500 62,900 -12% 176,400 182,300 -3%
-------------------------------------------------------------------------

Our sales volumes are directly affected by the amount of production from
our mines, and our ability to ship to our customers.
Sales volumes of gold this quarter were lower than the third quarter of
last year because gold production was down at Ok Tedi and Troilus made fewer
shipments. Sales volumes of zinc this quarter and year to date were higher
than the same periods in 2006, in line with higher production.

Production
-------------------------------------------------------------------------
three months ended nine months ended revised
Inmet's September 30 September 30 objective
share 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Copper (tonnes)
Ok Tedi 6,900 8,200 21,700 26,200 31,300
Cayeli 7,900 7,800 23,500 22,700 33,000
Pyhasalmi 3,400 3,900 10,300 9,800 14,000
Troilus 800 800 2,100 2,200 2,900
-------------------------------------------------------------------------
19,000 20,700 -8% 57,600 60,900 -5% 81,200
-------------------------------------------------------------------------
Zinc (tonnes)
Cayeli 12,300 9,700 32,500 26,600 44,400
Pyhasalmi 8,100 6,800 26,600 26,500 38,400
-------------------------------------------------------------------------
20,400 16,500 +24% 59,100 53,100 +11% 82,800
-------------------------------------------------------------------------
Gold (ounces)
Troilus 36,400 34,600 104,700 108,600 139,000
Ok Tedi 19,000 23,300 61,500 74,200 88,200
-------------------------------------------------------------------------
55,400 57,900 -4% 166,200 182,800 -9% 227,200
-------------------------------------------------------------------------
Pyrite (tonnes)
Pyhasalmi 45,100 56,900 -21% 304,000 334,800 -9% 537,000
-------------------------------------------------------------------------

This quarter:

- copper production was lower than the same period last year because
throughput at Ok Tedi was down.
- zinc production was higher mainly because of higher grades and higher
throughput at Cayeli.
- gold production was lower because throughput was down at both Troilus
and Ok Tedi.

2007 outlook for sales

We made some minor changes to our 2007 production estimates this quarter
to reflect the most recent forecasts at our operations.
We expect sales of all metals for the year to be consistent with these
revised production estimates. The total amount we will receive in Canadian
dollars will be affected by US dollar denominated metal prices and the
exchange rate between the US dollar and the Canadian dollar.

2. Copper cash costs this quarter were lower than 2006

We measure cost performance at our operations by tracking costs per pound
of copper or ounce of gold in US dollars.

Cash costs include:
- direct production costs, such as labour, fuel, consumables and other
costs directly related to the production of metals
- plus smelter processing charges and freight
- less revenue from the sale of by-product metals (metal credits).

The table below shows our cash cost by operation.

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(US $) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Cash cost per
pound of copper
Cayeli(1) $0.20 $0.29 -31% $0.25 $0.50 -50% $0.16
Pyhasalmi
(1,2) (0.87) (0.56) +55% (1.42) (1.20) +18% (1.61)
Ok Tedi(3) 0.94 0.93 +1% 0.86 0.83 +4% 0.77
-------------------------------------------------------------------------
$0.28 $0.38 -26% $0.19 $0.36 -47% $0.08
-------------------------------------------------------------------------
Cash cost per
ounce of gold
Troilus(4,5) $367 $366 - $384 $350 +10% $370
-------------------------------------------------------------------------
To estimate the by-product credits for our 2007 objectives, we used:
(1) a zinc price of US $1.46 per pound
(2) a euro to US dollar exchange rate of US $1.30
(3) a gold price of US $620 per ounce
(4) a copper price of US $3.44 per pound
(5) a US dollar to Canadian dollar exchange rate of $1.10.

Our cash cost per pound of copper this quarter was 26 percent lower than
the same period last year mainly because:

- zinc metal credits were higher because zinc production was higher
- smelter processing charges and freight were lower because copper and
zinc price participation charges and copper treatment charges were
lower.

The table below shows the breakdown of our cash cost per pound of copper:

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(US $) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Cash cost per
pound of copper
Direct
production
costs $1.16 $0.90 +29% $1.11 $0.91 +22% $1.03
Royalties and
variable
compensation 0.07 0.10 -30% 0.09 0.10 -10% 0.11
Smelter
processing
charges and
freight 1.05 1.13 -7% 1.04 1.11 -6% 1.03
Metal credits (2.00) (1.75) +14% (2.05) (1.76) +16% (2.09)
-------------------------------------------------------------------------
$0.28 $0.38 -26% $0.19 $0.36 -47% $0.08
-------------------------------------------------------------------------

Unit direct production costs for copper were higher this quarter and year
to date because copper production was down, the value of the US dollar was
lower and labour and consumable costs were higher, compared to 2006.

Direct production costs and cost of sales
-----------------------------------------
Our cost of sales this quarter was lower than in 2006...

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Cost of sales by
operation
Cayeli $20,518 $18,034 +14% $65,996 $55,092 +20%
Pyhasalmi 11,579 11,135 +4% 37,886 35,999 +5%
Troilus 17,755 20,909 -15% 57,887 56,422 +3%
Ok Tedi(1) 19,146 23,400 -18% 63,694 69,224 -8%
Other 619 414 +50% 1,462 1,368 +7%
-------------------------------------------------------------------------
$69,617 $73,892 -6% $226,925 $218,105 +4%
-------------------------------------------------------------------------
(1) Our 18 percent share of Ok Tedi's cost of sales.

...mainly because lower sales volumes and foreign exchange more than
offset higher costs

-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Volume $(5) $(3)
Labour costs 2 5
Consumables 7 12
Costs that vary with income and cash flow (3) (4)
Foreign exchange (5) (1)
-------------------------------------------------------------------------
Increase (decrease) in cost of sales,
compared to 2006 $(4) $9
-------------------------------------------------------------------------

Smelter processing charges and freight
--------------------------------------

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Smelter processing
charges and freight
by operation
Cayeli $19,474 $25,713 -24% $74,944 $72,503 +3%
Pyhasalmi 12,983 15,111 -14% 46,697 49,307 -5%
Troilus 1,478 3,127 -53% 6,191 8,214 -25%
Ok Tedi(1) 8,622 16,319 -47% 34,744 45,576 -24%
-------------------------------------------------------------------------
$42,557 $60,270 -29% $162,576 $175,600 -7%
-------------------------------------------------------------------------
Smelter processing
charges and
freight by metal
Copper $22,479 $35,018 -36% $77,156 $97,839 -21%
Zinc 17,673 22,783 -22% 76,459 70,304 +9%
Other 2,405 2,469 -3% 8,961 7,457 +20%
-------------------------------------------------------------------------
$42,557 $60,270 -29% $162,576 $175,600 -7%
-------------------------------------------------------------------------
(1) Our 18 percent share of Ok Tedi's smelter processing charges and
freight.

Copper treatment charges were lower in the third quarter and year to date
compared to 2006 because of more favourable contract terms with smelters. Zinc
smelter processing charges were lower in the third quarter despite higher
sales volumes, because the lower zinc price reduced our price participation
charges. Zinc processing charges year to date are higher than last year
because of higher zinc sales.

2007 outlook for costs

We have revised our 2007 copper cash cost objective to US $0.08 per pound
from US $(0.01) per pound because we expect operating costs to be higher and
copper production to be slightly lower.


3. Depreciation is higher for the year

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Depreciation by
operation
Cayeli $1,654 $1,822 -9% $6,222 $5,546 +12%
Pyhasalmi 1,764 2,336 -24% 6,558 6,284 +4%
Troilus 2,784 3,123 -11% 7,500 8,074 -7%
Ok Tedi 2,537 1,744 +45% 5,913 4,611 +28%
-------------------------------------------------------------------------
$8,739 $9,025 -3% $26,193 $24,515 +7%
-------------------------------------------------------------------------

Depreciation at Ok Tedi was higher because of the depreciation of recent
capital additions for mining operations.

2007 outlook for depreciation

We expect depreciation to be approximately $34 million for 2007.


CORPORATE COSTS

This includes general and administration costs, taxes and interest. We
also record income from investments in this category, as well as income we
receive from other transactions.

1. Investment income was higher in the quarter because of rising
interest income

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 2007 2006
-------------------------------------------------------------------------
Gain on sale of Izok $ - $ - $ - $23,905
Gain on sale of Wolfden - - 11,730 -
Interest and dividend income 10,451 4,483 27,015 8,720
Foreign exchange loss (4,695) (2,390) (14,240) (2,610)
Other 1,028 164 3,291 527
-------------------------------------------------------------------------
$6,784 $2,257 $27,796 $30,542
-------------------------------------------------------------------------

In 2006, we sold our interest in the Izok development property to Wolfden
Resources Inc., and recorded a gain of $23.9 million. In exchange, we received
13.5 million common shares of Wolfden and 9.5 million common shares of Premier
Gold Mining Ltd. This year, we disposed of our shares in Wolfden to Zinifex
Canadian Enterprises Inc. for cash proceeds of $51.4 million or $3.81 per
share, and recorded a gain of $11.7 million.
Interest income was higher this quarter and year to date compared to the
same periods last year because we had higher cash balances.
We recorded a foreign exchange loss of $4.7 million this quarter because
of the revaluation of some of our foreign currency denominated accounts and
cash balances, and the recognition of deferred foreign exchange losses from
dividends from Ok Tedi.

2007 outlook for investment and other income

Investment and other income will be affected by cash balances, interest
rates and exchange rates. Rising cash balances at our foreign operations may
lead us to continue to repatriate funds. This could result in foreign exchange
losses or gains depending on the strength or weakness of the Canadian dollar
relative to the other currencies, compared to when we initially invested in
the operation, or the foreign exchange rate at which funds were accumulated.
We are not expecting significant repatriations for the remainder of the year.

2. Income tax expense was lower in the quarter

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Cayeli $13,055 $12,508 +4% $40,489 $21,810 +86%
Pyhasalmi 7,425 8,186 -9% 24,711 21,215 +16%
Ok Tedi 17,015 22,208 -23% 54,923 60,313 -9%
Las Cruces (232) - +100% 254 - +100%
Corporate 659 (41) +1707% 1,978 450 +340%
-------------------------------------------------------------------------
$37,922 $42,861 -12% $122,355 $103,788 +18%
-------------------------------------------------------------------------

Tax expense has fluctuated in parallel with earnings. At Cayeli, the
statutory tax rate is higher this year because we have returned to accruing
for withholding taxes on net income in anticipation of dividend payments. The
following table shows Cayeli's tax expense in more detail:

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(millions) 2007 2006 2007 2006
-------------------------------------------------------------------------
Current and future income
tax expense $10 $12 $31 $32
Withholding tax expense 3 - 9 -
Reduction in tax rate - 2006 - - - (10)
-------------------------------------------------------------------------
$13 $12 $40 $22
-------------------------------------------------------------------------

Despite higher earnings, Cayeli's current tax expense was lower this
quarter and year to date than the same periods last year because of foreign
exchange losses in their Turkish lira tax accounts. The 2006 tax expense
includes the impact of a rate reduction: In June 2006, the Turkish government
enacted tax legislation that reduced Cayeli's corporate tax rate to 20 percent
from 30 percent effective January 1, 2006.

2007 outlook for income tax expense

We are not expecting any further changes in statutory tax rates at our
operations in 2007.


Results of our operations


CAYELI

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Tonnes of ore
milled (000's) 262 240 +9% 770 686 +12% 1,050
Tonnes of ore
milled per day 2,850 2,600 +9% 2,800 2,500 +12% 2,900
-------------------------------------------------------------------------
Grades (percent)
copper 3.7 3.8 -3% 3.7 3.9 -5% 3.8
zinc 6.4 5.5 +16% 6.0 5.4 +11% 6.0
-------------------------------------------------------------------------
Mill recoveries
(percent)
copper 81 85 -5% 82 85 -4% 82
zinc 73 74 -1% 71 72 -1% 71
-------------------------------------------------------------------------
Production
(tonnes)
copper 7,900 7,800 +1% 23,500 22,700 +4% 33,000
zinc 12,300 9,700 +27% 32,500 26,600 +22% 44,400
-------------------------------------------------------------------------

Cayeli ore production continues strong with much improved metallurgical
performance

Ore production at Cayeli this quarter was nine percent higher than in the
same period last year, and higher than the first two quarters of this year. By
blending different ore types, Cayeli was also able to significantly improve
metallurgical performance during the quarter in comparison to prior quarters.

2007 outlook for production

We expect ore production for the rest of 2007 to be in line with our
objective for the year of 1.1 million tonnes.

Cash costs remain lower and are expected to decrease further by year end

Cash costs this quarter and year to date are lower than last year because
of higher zinc metal credits.

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(US $) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Cash cost per
pound of copper
Direct production
costs $1.01 $0.78 +29% $0.97 $0.77 +26% $0.91
Royalty payments 0.16 0.13 +23% 0.15 0.14 +7% 0.20
---------------------------------------------------------
Total direct
production
costs 1.17 0.91 +29% 1.12 0.91 +23% 1.11
Smelter
processing
charges and
freight 1.29 1.43 -10% 1.22 1.30 -6% 1.21
Metal
credits(1) (2.26) (2.05) +10% (2.09) (1.71) +22% (2.16)
-------------------------------------------------------------------------
Cash costs $0.20 $0.29 -31% $0.25 $0.50 -50% $0.16
Depreciation
and other
non-cash costs 0.13 0.11 +18% 0.13 0.11 +18% 0.14
-------------------------------------------------------------------------
Total costs $0.33 $0.40 -18% $0.38 $0.61 -38% $0.30
-------------------------------------------------------------------------
(1) We used a zinc price of US $1.47 per pound to estimate the metal
credit in the 2007 objective for cash costs per pound of copper. For
every US $0.05 per pound change in the price of zinc, cash costs
would change by US $0.04 per pound.


Direct production costs this quarter were US $0.23 per pound higher than
2006

-------------------------------------------------------------------------
three months nine months
ended ended
(US $ per pound) September 30 September 30
-------------------------------------------------------------------------
Impact of higher copper production $(0.01) $(0.03)
Higher labour costs 0.09 0.08
Higher consumable and energy costs 0.11 0.08
Higher consumable volumes 0.01 0.04
Other 0.03 0.03
-------------------------------------------------------------------------
Increase in direct production costs,
compared to 2006 $0.23 $0.20
-------------------------------------------------------------------------

2007 outlook for costs

We have adjusted our unit cost objective for Cayeli to US $0.16 per pound,
from our initial objective of US ($0.02) per pound, to account for higher
labour and material costs, and lower zinc production.

Capital spending higher than 2006

-------------------------------------------------------------------------
three months ended nine months ended revised
(thousands September 30 September 30 objective
of US$) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Capital
spending $5,900 $2,900 +103% $14,100 $9,400 +50% $19,000
-------------------------------------------------------------------------

About half of the capital spending year to date (US $7 million;
US $2 million in the third quarter) has been on the shaft extension project.

2007 outlook for capital spending

We have allocated capital spending in the rest of 2007 to mine
development, loaders and for sustaining and other capital.

Operating earnings improved from 2006

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Sales (tonnes)
copper 8,800 7,900 +11% 24,200 21,600 +12%
zinc 10,400 8,500 +22% 36,700 28,800 +27%
-------------------------------------------------------------------------
Operating earnings
(millions) $66.0 $60.3 +9% $190.4 $149.6 +27%
-------------------------------------------------------------------------
Operating cash flows
(millions) $41.6 $64.0 -35% $163.9 $149.2 +10%
-------------------------------------------------------------------------

...mainly because of higher metal prices, and higher zinc sales volumes
year to date

-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Higher (lower) metal prices, denominated
in Canadian dollars $(14) $7
Higher sales volumes 10 27
Lower smelter processing charges 11 14
Higher operating costs (1) (6)
Other - (1)
-------------------------------------------------------------------------
Increase in operating earnings, compared to 2006 6 41
Higher tax expense from higher rates (3) (9)
Changes in working capital (21) (14)
Other (4) (3)
-------------------------------------------------------------------------
Increase (decrease) in operating cash flow,
compared to 2006 $(22) $15
-------------------------------------------------------------------------

The change in working capital this quarter and year to date is from higher
accounts receivable because of higher sales.


PYHASALMI

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Tonnes of ore
milled (000's) 348 353 -1% 1,019 1,026 -1% 1,370
Tonnes of ore
milled per day 3,780 3,800 -1% 3,730 3,800 -1% 3,750
-------------------------------------------------------------------------
Grades (percent)
copper 1.0 1.2 -17% 1.1 1.0 +10% 1.1
zinc 2.6 2.2 +18% 2.9 2.8 +4% 3.1
sulphur 40.7 40.4 +1% 40.3 39.6 +2% 41
-------------------------------------------------------------------------
Mill recoveries
(percent)
copper 95 95 - 95 95 - 95
zinc 89 88 +1% 91 93 -2% 92
-------------------------------------------------------------------------
Production
(tonnes)
copper 3,400 3,900 -13% 10,300 9,800 +5% 14,000
zinc 8,100 6,800 +19% 26,600 26,500 - 38,400
pyrite 45,100 56,900 -21% 304,000 334,800 -9% 537,000
-------------------------------------------------------------------------

Pyhasalmi increases its annual copper production objective

Mill throughput is consistent with 2006.
As expected, higher zinc grades in the third quarter led to increased
production compared to the same period last year. The mine decreased pyrite
production in the third quarter of 2007 and 2006 to reduce stockpile levels.

2007 outlook for production

We expect Pyhasalmi to meet its production objectives for 2007. Because
copper grades should be higher for the year as a whole, we expect 2007 copper
production to be nine percent higher than originally anticipated. We also
expect an incremental increase in zinc production for the year because we plan
to mine zinc rich stopes in the fourth quarter.

Cash costs were lower

Zinc production increased considerably in the third quarter, which
increased metal credits and reduced cash costs. Improved terms for copper
treatment charges also contributed to lower cash costs overall.

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(US $) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Cash cost per
pound of copper
Direct production
costs $1.38 $1.11 +24% $1.47 $1.43 +3% $1.34
Smelter
processing
charges and
freight 1.46 1.46 - 1.59 1.85 -14% 1.69
Metal
credits(1) (3.71) (3.13) +19% (4.48) (4.48) - (4.64)
-------------------------------------------------------------------------
Cash costs $(0.87) $(0.56) +55% $(1.42) $(1.20) +18% $(1.61)
Depreciation
and other
non-cash costs 0.25 0.26 -4% 0.28 0.28 - 0.28
-------------------------------------------------------------------------
Total costs $(0.62) $(0.30) +107% $(1.14) $(0.92) +24% $(1.33)
-------------------------------------------------------------------------
(1) We used a zinc price of US $1.47 per pound to estimate the metal
credit in our 2007 objective for cash costs per pound of copper, and
a euro to US dollar exchange rate of US $1.30. For every US $0.05 per
pound change in the price of zinc, cash costs would change by
US $0.11 per pound.


Lower copper production this quarter increased unit direct production
costs

Operating costs in euros for the quarter were consistent with 2006, but US
dollar unit production costs were higher because copper production was lower
compared to last year, as was the value of the US dollar.

-------------------------------------------------------------------------
three months nine months
ended ended
(US $ per pound) September 30 September 30
-------------------------------------------------------------------------
Weakened US dollar compared to the euro $0.11 $0.11
Change in costs due to change in copper
production 0.17 (0.07)
Other (0.01) -
-------------------------------------------------------------------------
Increase in direct production costs,
compared to 2006 $0.27 $0.04
-------------------------------------------------------------------------


2007 outlook for costs

Our annual cash cost objective for Pyhasalmi is consistent with our
initial objective of US ($1.61) per pound. We expect the impact of the weaker
US dollar relative to the euro to be offset by higher copper production.

Minimal capital spending in 2007, as expected

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(thousands) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
(euro) (euro) (euro) (euro) (euro)
Capital spending 900 1,200 -25% 1,400 2,400 -42% 2,500
-------------------------------------------------------------------------


2007 outlook for capital spending

We expect to spend (euro) 2.5 million to replace mine mobile equipment and
for other sustaining capital.

Operating cash flows higher than last year

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Sales (tonnes)
copper 3,900 3,800 +3% 10,700 9,800 +9%
zinc 7,500 6,300 +19% 26,100 25,000 +4%
pyrite 118,100 113,600 +4% 376,400 363,500 +4%
-------------------------------------------------------------------------
Operating earnings
(millions) $34.1 $35.9 -5% $110.4 $94.1 +17%
-------------------------------------------------------------------------
Operating cash
flows (millions) $52.7 $29.5 +79% $103.7 $70.8 +46%
-------------------------------------------------------------------------

...mainly because of working capital changes

-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Higher (lower) metal prices, denominated
in Canadian dollars $(9) $5
Higher sales volumes 3 7
Lower smelter processing charges and freight 4 6
Other - (2)
-------------------------------------------------------------------------
Increase (decrease) in operating earnings,
compared to 2006 $(2) $16
Change in tax expense because of change
in earnings 1 (3)
Changes in working capital 25 21
Other (1) (1)
---------------------------
Increase in operating cash flow,
compared to 2006 $23 $33
-------------------------------------------------------------------------

The change in working capital is mainly because accounts receivable
balances are lower this year because of lower zinc prices and volumes.


TROILUS

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Tonnes of ore
milled (000's) 1,475 1,645 -10% 4,600 4,880 -6% 6,100
Tonnes of ore
milled per
day 16,000 17,900 -10% 16,800 17,900 -6% 16,700
-------------------------------------------------------------------------
Strip ratio 1.1 1.3 -15% 1.0 1.6 -38% 1.1
-------------------------------------------------------------------------
Grades
gold (grams/
tonne) 0.93 0.79 +18% 0.87 0.84 +4% 0.87
copper
(percent) 0.06 0.05 +20% 0.05 0.05 - 0.05
-------------------------------------------------------------------------
Mill recoveries
(percent)
gold 83 83 - 82 82 - 81
copper 89 88 +1% 87 87 - 87
-------------------------------------------------------------------------
Production
gold
(ounces) 36,400 34,600 +5% 104,700 108,600 -4% 139,000
copper
(tonnes) 800 800 - 2,100 2,200 -5% 2,900
-------------------------------------------------------------------------

Mill throughput affected by harder ores during the third quarter

While mill throughput was below expectations this quarter, higher gold
grades increased gold production compared to the same period last year. Hard
ore from the 87 pit lowered throughput, and we expect this to continue until
we can access the lower levels of the pit in September 2008.
We continue to look at alternatives in our grinding circuit to optimize
performance. We made some changes in the SAG mill at the end of the quarter
and this appears to have been successful in improving performance and
utilizing the power available.

2007 outlook for production

We expect gold production for 2007 to be 139,000 ounces, compared to our
original objective of 157,900 ounces. This is the result of the ball mill
capacity restrictions we experienced this year, and a three-day unplanned mill
shut down in October to replace the ball mill pinion. We have adjusted our ore
throughput target to 6.1 million tonnes for the year.

Cash cost per ounce in the quarter consistent to last year's unit cost

Troilus pays for its production costs in Canadian dollars, but reports its
cash costs in US dollars. The weaker US dollar has increased US dollar cash
costs this year, but higher gold production offset most of that increase this
quarter.

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(US $) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Cash cost
per ounce
of gold
Direct
production
costs $489 $478 +2% $488 $465 +5% $486
Smelter
processing
charges and
freight 43 73 -41% 53 69 -23% 48
Metal
credits(1) (165) (185) -11% (157) (184) -15% (164)
-------------------------------------------------------------------------
Cash cost $367 $366 - $384 $350 +10% $370
Depreciation
and other
non-cash
costs 81 75 +8% 64 70 -9% 69
-------------------------------------------------------------------------
Total cost $448 $441 +2% $448 $420 +7% $439
-------------------------------------------------------------------------
(1) We used a copper price of US $3.30 per pound to estimate the metal
credit in the 2007 objective for cash costs per ounce of gold and a
US dollar to Canadian dollar exchange rate of $1.10.


Direct production costs this quarter were US $11 per ounce higher than
2006

-------------------------------------------------------------------------
three months nine months
ended ended
(US $ per ounce) September 30 September 30
-------------------------------------------------------------------------
Stronger Canadian dollar $34 $12
Change in costs due to change in production (26) 18
Lower consumable costs - (8)
Other 3 1
-------------------------------------------------------------------------
Increase in direct production costs, compared
to 2006 $11 $23
-------------------------------------------------------------------------

2007 outlook for unit costs

We have adjusted our unit cost objective to US $370 per ounce, from our
original objective of US $348 per ounce, because we expect gold production to
be lower for the year as a whole.

Modest capital spending

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(thousands) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Capital
spending $1,100 $1,300 -15% $1,500 $1,900 -21% $2,000
-------------------------------------------------------------------------

2007 outlook for capital spending

The mine will spend approximately $2 million on copper cleaner cells in
the mill, on a tailings dam lift and embankment enforcements, and on other
sustaining capital.

Operating earnings higher because of higher gold prices

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Sales
gold (ounces) 33,900 38,400 -12% 106,100 105,400 +1%
copper (tonnes) 700 900 -22% 2,100 2,200 -5%
-------------------------------------------------------------------------
Operating earnings
(millions) $3.0 $2.1 +43% $9.5 $4.8 +98%
-------------------------------------------------------------------------
Operating cash flows
(millions) $4.8 $13.3 -64% $9.5 $12.0 -21%
-------------------------------------------------------------------------



-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Higher metal prices denominated in
Canadian dollars $- $4
Lower smelter processing charges 1 1
-------------------------------------------------------------------------
Increase in operating earnings, compared
to 2006 1 5
Changes in working capital (8) (4)
Other (2) (3)
-------------------------------------------------------------------------
Decrease in operating cash flow, compared
to 2006 $(9) $(2)
-------------------------------------------------------------------------

The change in working capital results from an increase in accounts
receivable. The increase is because of new payment terms for the smelter,
which began in 2007.


OK TEDI

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(100 percent) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Tonnes of ore
milled (000's) 6,500 6,700 -3% 19,500 20,800 -6% 26,000
Tonnes of ore
milled per
day 70,700 72,800 -3% 71,500 76,200 -6% 71,000
-------------------------------------------------------------------------
Strip ratio 1.1 1.8 -39% 1.2 1.7 -29% 1.1
-------------------------------------------------------------------------
Grades
copper
(percent) 0.7 0.8 -13% 0.7 0.8 -13% 0.7
gold (grams/
tonne) 0.8 0.8 - 0.8 0.9 -11% 0.8
-------------------------------------------------------------------------
Mill recoveries
(percent)
copper 86 86 - 86 86 - 87
gold 64 73 -12% 71 71 - 72
-------------------------------------------------------------------------
Production
copper
(tonnes) 38,200 45,500 -16% 120,800 145,300 -17% 174,000
gold
(ounces) 105,400 129,500 -19% 341,400 412,100 -17% 490,000
-------------------------------------------------------------------------

High fluorine ore continued to impact production as expected

Ok Tedi continued to mine skarn ores in the pit that contained high levels
of fluorine. To reduce the fluorine to levels acceptable by smelters, Ok Tedi
also mined lower grade ore from other areas of the pit. However, this had the
effect of reducing copper and gold head grades, lowering copper and gold
production to well below last year's levels.
Ok Tedi has developed a fluorine management plan to improve concentrate
quality and increase the sale of concentrates containing elevated fluorine
levels. The mine is currently opening additional working faces in the pit,
including areas that are expected to contain lower levels of fluorine. We
expect these areas will be in production in early 2008. At that time, Ok Tedi
should be in a position to blend the ore to bring down fluorine levels in the
concentrate.

2007 outlook for production

We expect Ok Tedi's 2007 production to be affected by fluorine content in
the ore and have reflected this in the mine's production objectives:

- copper production is expected to be 174,000 tonnes compared to our
original objective of 188,000 tonnes

- gold production is expected to be 490,000 ounces compared to our
original objective of 507,000 ounces.

Costs higher mainly due to lower production

-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(US $) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Cash cost
per pound
of copper
Direct
production
costs $1.23 $0.92 +34% $1.08 $0.84 +29% $1.02
Variable
compensation - 0.12 -100% 0.06 0.11 -45% 0.07
Smelter
processing
charges and
freight 0.57 0.69 -17% 0.58 0.66 -12% 0.53
Metal
credits(1) (0.86) (0.80) +8% (0.86) (0.78) +10% (0.85)
-------------------------------------------------------------------------
Cash cost $0.94 $0.93 +1% $0.86 $0.83 +4% $0.77
Depreciation
and other
non-cash
costs 0.14 0.08 +75% 0.13 0.07 +86% 0.11
-------------------------------------------------------------------------
Total costs $1.08 $1.01 +7% $0.99 $0.90 +10% $0.88
-------------------------------------------------------------------------
(1) We used a gold price of US $650 per ounce to estimate the metal
credit in the 2007 objective for cash costs per pound of copper.

Direct production costs in the quarter were US $0.31 per pound higher
than 2006

-------------------------------------------------------------------------
three months nine months
ended ended
(US $ per pound) September 30 September 30
-------------------------------------------------------------------------
Increase in costs from lower production $0.20 $0.18
Higher labour costs 0.02 0.01
Higher consumables cost 0.01 0.02
Higher payments to the community 0.05 0.03
Other 0.03 -
-------------------------------------------------------------------------
Increase in direct production costs,
compared to 2006 $0.31 $0.24
-------------------------------------------------------------------------

2007 outlook for costs

We revised our annual cash cost objective from our original objective of
US $0.61 per pound, to US $0.77 per pound of copper, mainly because we now
expect copper production to be lower.

Capital spending was higher because of the mine waste management program

Ok Tedi's capital spending this quarter was mainly for the mine waste
management program.

-------------------------------------------------------------------------
(100 percent) three months ended nine months ended
(thousands September 30 September 30 objective
of US$) 2007 2006 change 2007 2006 change 2007
-------------------------------------------------------------------------
Capital
spending $45,000 $15,600 +188% $107,700 $32,400 +232% $209,000
-------------------------------------------------------------------------

2007 outlook for capital spending

Most of the capital spending at Ok Tedi for the rest of the year will be
related to the mine waste management program. The remaining amount will be
spent on capital required for pit drainage, mine equipment and other
sustaining capital.

Operating earnings lower this quarter from lower sales volumes

Sales volumes were lower mainly because production was lower. Concentrate
inventory was reduced by 13,000 tonnes this quarter, to 70,000 tonnes as at
September 30, 2007.

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(18 percent) 2007 2006 change 2007 2006 change
-------------------------------------------------------------------------
Sales
copper (tonnes) 7,600 9,400 -19% 24,900 27,200 -8%
gold (ounces) 21,600 24,600 -12% 70,300 77,000 -9%
Operating earnings
(millions) $48.9 $60.0 -19% $154.3 $163.7 -6%
Operating cash flows
(millions) $5.8 $46.9 -88% $75.8 $138.7 -45%
-------------------------------------------------------------------------



-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Lower metal prices, denominated in
Canadian dollars $(3) $(1)
Lower sales volumes (13) (14)
Lower smelter processing charges 4 8
Lower variable compensation 3 4
Higher operating costs (2) (6)
-------------------------------------------------------------------------
Decrease in operating earnings, compared
to 2006 (11) (9)
Decreased tax expense because of lower
earnings 8 6
Changes in net working capital (38) (59)
Other - (1)
-------------------------------------------------------------------------
Decrease in operating cash flow, compared
to 2006 $(41) $(63)
-------------------------------------------------------------------------

The change in working capital is mainly because of higher accounts
receivable from timing of receipts and the payment of taxes.

Status of our development projects

Las Cruces

Quarterly development update - delay in plant construction

Construction of the hydrometallurgical process plant has been delayed and
is now scheduled to be completed in the fourth quarter of 2008. It is
approximately 50 percent complete and is behind schedule mainly because of
delays in finalizing engineering drawings and the disappointing performance of
a major contractor. Detailed engineering is now fully completed and all
construction drawings have been issued. Las Cruces has also replaced one of
its prime contractors and re-tendered several parts of the project. It
anticipates meeting the milestones for completing the remaining 50 percent of
construction. Although the delay is disappointing, it also provides Las Cruces
with the opportunity to prepare for a smooth commissioning and allows it to
use the ore stockpile to prepare an optimal blend for start-up.
We anticipate that the estimated project capital cost of
(euro)463 million will be increased by (euro)4 million per month from April
2008 until production begins to cover owners and construction management
costs.
Overburden removal in the pit is proceeding as planned and we expect that
the first ore will be mined by May 2008. Aomsa, Las Cruces' mining contractor,
has been performing very well over the past year and a half, ensuring that ore
production should be available. During the first four months of mining, Las
Cruces anticipates it will selectively mine and crush between 100,000 and
150,000 tonnes of high grade chalcocite ore at an estimated average grade of
14 percent copper, which is equivalent to between 13,000 and 20,000 tonnes of
contained copper and is part of Las Cruces' mineral reserves. To manage the
impact of the delay in plant construction, Las Cruces plans to sell some or
all of this material as direct feed to copper smelters.
Under its mining plan Las Cruces will mine approximately 300,000 tonnes
of gossan in 2008. The gossan is the weathered zone overlying the main
chalcocite orebody and contains lead, gold and silver. It is currently not
part of Las Cruces' mineral reserve. The original plan was to stockpile the
gossan during the initial mining phase and consider processing it at a later
time. Metallurgical test work has indicated that the gossan can be processed
into a lead concentrate with about 50 percent of the gold and 65 percent of
the silver reporting to the concentrate. Lead recoveries would be around
50 percent. Because of the current high price of lead, Las Cruces is
evaluating options to enter into a toll milling arrangement to produce a
saleable concentrate from the gossan.

CERATTEPE

Quarterly development update - making encouraging progress

Construction work has begun

All the necessary permits are in place and to begin construction on the
site, three critical components of the project are now underway:

Underground rehabilitation and development
Work on the decline has begun and is proceeding as expected. We expect to
reach the orebody in the first quarter of 2009.

Aerial tramway
We have selected the contractor to design, supply and install the
ropeway. Engineering has begun and the tramway should be installed by the end
of 2008.

Cayeli mill expansion
This is the single largest cost related to the project. The mill needs to
increase its capacity from 1.2 million tonnes per year to 1.5 million tonnes
per year. This requires a new grinding and flotation section as well as a
small SAG mill and a ball mill.
We completed geotechnical investigations at the mine site and we continue
to maintain an active campaign of community dialogue and engagement to
reinforce support for the project.
Subject to the outcome of current legal proceedings (see Managing Risk -
Cerattepe legal proceedings), we will continue to move the project forward and
hope to start production by the end of the first quarter of 2009.

PETAQUILLA

Quarterly development update

Front-end engineering and design (FEED) program is advancing

The FEED program continued this quarter, focusing on process engineering
and infrastructure. A number of technical changes to the original 1998
feasibility study have been suggested related to alternatives for
transportation and power supply. We will continue to do work in this area, get
up to date capital costs, identify and draft specifications for long lead time
equipment and build an effective project execution plan.

Work on the social environmental impact assessment is progressing

Work in this area accelerated during the quarter. This work includes
interacting with local communities to ensure that their needs are addressed in
the social and environmental impact assessment required by regulatory
authorities.

2007 drill program has begun

The program includes more than 30,000 metres of condemnation, infill,
metallurgical, geotechnical and hydrogeological drilling. The emphasis is on
condemnation and geotechnical drilling because the results of these can
directly affect the project design. Some drilling has begun, but we need
approval for two additional permits from the Panamanian mining and
environmental authorities to begin full-scale drilling. We expect these
approvals in November 2007.

Managing our liquidity

-------------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(millions) 2007 2006 2007 2006
-------------------------------------------------------------------------
CASH FROM OPERATING ACTIVITIES
Cayeli $42 $64 $164 $149
Pyhasalmi 53 30 104 71
Troilus 5 13 10 12
Ok Tedi 6 47 76 139
Corporate development and
exploration not included in
operation's cash flow (1) (1) (3) (2)
General and administration (3) (3) (8) (8)
Other 6 1 8 (4)
-------------------------------------------------------------------------
108 151 351 357
-------------------------------------------------------------------------
CASH FROM INVESTING AND FINANCING
Capital spending (118) (50) (252) (87)
Long-term borrowings, less
repayments 27 10 65 37
Funding from non-controlling
shareholder 13 - 40 9
Acquisition (disposition) of
investments (1) 2 50 4
Foreign exchange on cash held in
foreign currency (23) - (57) (2)
Other 6 (7) (22) (14)
-------------------------------------------------------------------------
(96) (45) (176) (53)
-------------------------------------------------------------------------
Increase in cash 12 106 175 304
Cash and short-term investments
Beginning of period 803 450 640 252
-------------------------------------------------------------------------
End of period $815 $556 $815 $556
-------------------------------------------------------------------------



CASH FROM OPERATING ACTIVITIES

-------------------------------------------------------------------------
three months nine months
ended ended
(millions) September 30 September 30
-------------------------------------------------------------------------
Increased (decreased) earnings from
operations (see page 5) $(7) $52
Non-cash changes in operating earnings:
Decreased (increased) tax expense 5 (1)
Changes in working capital (43) (58)
Other 2 1
-------------------------------------------------------------------------
Decrease in operating cash flow, compared
to 2006 $(43) $(6)
-------------------------------------------------------------------------

Operating cash flows are lower compared to 2006 because of an increase in
working capital, mostly at Ok Tedi.

2007 outlook for operating activities

We expect high metal prices and increased production to continue to
increase earnings and operating cash flows. The level of operating cash flows
will depend on earnings and the accumulation or reduction of working capital.

CASH FROM INVESTING AND FINANCING

Capital spending
-------------------------------------------------------------------------
three months ended nine months ended revised
September 30 September 30 objective
(millions) 2007 2006 2007 2006 2007
-------------------------------------------------------------------------
Cayeli $6 $4 $16 $11 $21
Pyhasalmi 1 1 2 3 3
Troilus 1 1 1 2 2
Ok Tedi 9 4 21 7 41
Las Cruces 100 39 207 61 435
Cerattepe 1 - 4 1 8
Accruals and other - 1 1 2 -
-------------------------------------------------------------------------
$118 $50 $252 $87 $510
-------------------------------------------------------------------------

Refer to Results of our operations and Status of our development projects
for a discussion of actual results and our 2007 objective.
Las Cruces borrowed an additional (euro)19 million this quarter, bringing
the total amount borrowed under its credit facility to (euro)94 million.

2007 outlook for investing and financing

We expect capital spending to be $510 million in 2007. Of that amount, we
expect to spend $435 million for the continuing development of the Las Cruces
mine, and $28 million for the mine waste management program at Ok Tedi. The
remaining spending will be mostly on sustaining capital.

Financial condition

CASH

Our cash and equivalents balance of $815 million is mostly held in crown
corporation investments and bank term deposits. At September 30, 2007 we held
$26 million of our investments (3 percent of our portfolio) in asset-backed
commercial paper funds sponsored by a Canadian chartered bank, with maturity
dates of less than 90 days. These funds meet the global liquidity standards of
a recognized international rating agency and are backed by global liquidity
line agreements with the bank.

Our restricted cash balance of $46 million at September 30, 2007
includes:

- $12 million in trust for future rehabilitation at Ok Tedi
- $14 million of cash collateralized letters of credit for Inmet
- $20 million related to issuing letters of credit to suppliers at
Las Cruces.

COMMON SHARES

-------------------------------------------------------------------------
Common shares outstanding as of September 30, 2007
and October 30, 2007 48,281,759
-------------------------------------------------------------------------
Deferred share units outstanding as of September 30, 2007
(redeemable on a one-for-one basis for common shares) 74,274
-------------------------------------------------------------------------

OFF BALANCE SHEET TRANSACTIONS

As at September 30, 2007, we had no off balance sheet transactions.

The following table shows gold hedging transactions at Troilus, gold and
copper hedging transactions at Ok Tedi, the currency and interest rate hedges
related to Las Cruces, and their respective marked-to-market valuations
recorded on our consolidated balance sheet as at September 30, 2007.

-------------------------------------------------------------------------
C$ marked-to-
Type of market gain (loss)
contract Expiry Quantity Price at September 30 2007
-------------------------------------------------------------------------
Copper
forward
sales
Ok Tedi 2007 1.0 million lbs US $3.03 per lb
2008 3.2 million lbs US $2.78 per lb
2009 3.2 million lbs US $2.41 per lb
-------------------------------------------------------------
7.4 million lbs US $2.66 per lb $(5.2 million)(1)
Gold forward
sales
Troilus 2007 14,600 ounces US $352 per oz.
2008 58,200 ounces US $352 per oz.
-------------------------------------------------------------
72,800 ounces US $352 per oz. $(27.7 million)(2)

Ok Tedi 2007 6,700 ounces US $372 per oz.
2008 6,800 ounces US $372 per oz.
-------------------------------------------------------------
13,500 ounces US $372 per oz. $(4.9 million)(2)

Ok Tedi 2010 3,600 ounces US $748 per oz.
2011 3,600 ounces US $775 per oz.
2012 3,600 ounces US $803 per oz.
2013 1,800 ounces US $825 per oz.
-------------------------------------------------------------
12,600 ounces US $783 per oz. $(1.5 million)(2)

Currency
forward
sales
Las Cruces 2008 US $215 million (euro)171.80 million $28.5 million
-------------------------------------------------------------

Interest
rate swaps
Las Cruces 2008 US $179 million 5.2 percent $(3.2 million)
to (reducing in con-
2014 junction with debt
repayment schedule)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) At a copper price of US $3.64 per pound.
(2) At a gold price of US $743 per ounce.

Accounting changes

We adopted several new CICA - Handbook sections.

Section 3855 - Financial instruments - recognition and measurement

This section establishes standards for recognizing and measuring
financial assets, financial liabilities and non-financial derivatives. It
requires that financial assets and liabilities including derivatives be
recognized on the balance sheet when we become a party to the contractual
provisions of the financial instrument or a non-financial derivative contract.
All financial instruments should be measured at fair value on initial
recognition except for certain related party transactions. Measurement in
subsequent periods depends on whether the financial instruments have been
classified as held-for-trading, available-for-sale, held-to-maturity, loans
and receivables, or other liabilities.
Effective January 1, 2007, we classify cash and short-term investments,
accounts receivable, investments, restricted cash, accounts payable and
accrued liabilities as held-for-trading and record them on the balance sheet
at fair value. We record long-term debt at amortized cost.

3865 - Hedges

This section specifies when and how we can use hedge accounting for
hedging strategies: fair value hedges, cash flow hedges and hedges of a
foreign currency exposure of a net investment in a self-sustaining foreign
operation.
All of our hedges at January 1, 2007 qualified for cash flow hedge
accounting. The contracts are reflected at fair value on the balance sheet.

1530 - Comprehensive income

This section calls for a statement of comprehensive income and its
components. Other comprehensive income includes unrealized gains and losses on
financial assets classified as available-for-sale, unrealized foreign currency
translation amounts arising from self-sustaining foreign operations, and
changes in the fair value of the effective portion of cash flow hedging
instruments.
Effective January 1, 2007, we include unrealized fair value of our cash
flow hedges, investments and foreign currency translation adjustment in
accumulated other comprehensive income, net of tax. The change in fair value
this quarter of the effective portion of our cash flow hedges, investments and
foreign currency translation adjustments is included in other comprehensive
income for the period, net of tax.
Turn to note 2 on page 42 in the Interim consolidated financial
statements for more details about the transitional adjustments.

The CICA has also recently issued new accounting pronouncements:

In December 2006, the CICA issued Handbook Section 3862, Financial
Instruments - Disclosure and Section 3863, Financial Instruments -
Presentation. Section 3862 replaces the disclosure portion of Section 3861. It
places increased emphasis on disclosing the nature and extent of risks arising
from both recognized and unrecognized financial instruments, and how these
risks are managed. Section 3863 carries forward the presentation requirements
from Section 3861.
Additionally in December 2006, the CICA issued Handbook Section 1535,
Capital Disclosures. This Section establishes standards for disclosing
qualitative and quantitative information about an entity's capital and how it
is managed in order to enable users of its financial statements to evaluate
the entity's objectives, policies and processes for managing capital.
In June 2007, the CICA issued Handbook Section 3031, Inventories. This
Section requires inventory to be recorded at the lower of cost or net
realizable value, which is our current accounting policy. The section also
clarifies the allocation of fixed production overhead, requires consistent use
of either first-in, first-out or weighted average to measure inventories, and
requires that any previous write-downs be reversed when the value of
inventories increases. The amount of the reversal is limited to the amount of
the original write-down.
The above standards will become effective for us beginning on January 1,
2008. We are reviewing these standards, and have not yet determined the
impact, if any, on our consolidated financial statements.

Managing risk

The following is an update to the discussion, only where required, of the
key risks associated with our business and the strategies we use to manage
them. You can find the full discussion in the annual Management's discussion
and analysis in Inmet's 2006 annual report.

Development at Las Cruces

Las Cruces is a development project, and while we are confident that the
project will add value as planned, there is still significant uncertainty,
particularly in Las Cruces' contractors ability to meet critical construction
milestones. While there are rigorous controls on the contractors' performance,
progress depends highly on the abilities of Las Cruces' owner's team and
construction manager to hire the necessary resources and effectively manage
them.
A local non-governmental group has initiated several legal proceedings
claiming that various governmental approvals for the project were not granted
according to regulatory requirements. We believe these claims are without
merit and are vigourously defending against them. Two of these proceedings
were dismissed in 2006. The other two proceedings are outstanding.

Development at Cerattepe

While recent court decisions have confirmed the validity of the project's
operating licences, the local non-governmental group plaintiff has re-filed
its applications to cancel the operating licenses and filed new applications
with a view to stopping the project. Since the recent court decisions, we have
resumed permitting and on-site work, but an adverse ruling in the future could
have an impact on or stop our progress.

Cerattepe legal proceedings

Prior to April of this year, Cerattepe was affected by a local
administrative court decision that governmental authorities had incorrectly
exempted the project operating licences from environmental assessment
regulations. In April, the Danistay (Turkish Administrative Supreme Court)
directed the lower court to review its decision and re-instated the validity
of the licences on procedural grounds. In June, the local court confirmed its
agreement with the Danistay's decision. The plaintiff in the prior proceedings
has since re-filed its applications to have the licences cancelled, and has
also made applications to stop work on the property and to cancel a lease of
the land on which the bottom ropeway terminus will be located. While the
recent court decisions do not finally resolve the status of the operating
licences, they remain valid pending new decisions from the local
administrative court. At this time, neither we nor the relevant government
authorities, who are defendants in the proceedings, have received the
particulars of the applications filed by the plaintiff after the Danistay
ruling. We intend to join in the proceedings and respond to these applications
as we believe they are without merit.

Sensitivity analysis

The table below shows you the effect of key variables on our net income,
based on our revised objectives for 2007.

-------------------------------------------------------------------------
Would change
Would change our 2007
our 2007 net net income per
A change of: income by: share by:
-------------------------------------------------------------------------
Metal prices
Copper (per pound) US $0.10 $13 million $0.28
Zinc (per pound) US $0.05 $5 million $0.11
Gold (per ounce)(1) US $10 $2 million $0.03
-------------------------------------------------------------------------
Exchange rates
Canadian dollar
per US dollar C$0.05 $21 million $0.43
Canadian dollar
per euro C$0.05 $5 million $0.09
-------------------------------------------------------------------------
Treatment and
refining charges
Copper treatment
charge per tonne US $10
and copper
refining charge
per pound US $0.10 $4 million $0.08
Zinc treatment
charge per tonne US $10 $1 million $0.03
-------------------------------------------------------------------------
Freight and energy
costs
Concentrate freight
per tonne 10% $3 million $0.06
Fuel price per
litre $0.10 $3 million $0.07
Electricity per
kilowatt hour $0.01 $2 million $0.05
-------------------------------------------------------------------------
(1) Calculations include hedging in place at December 31, 2006.

About Inmet

Inmet is a Canadian-based global mining company that produces copper,
zinc and gold. We have interests in four mining operations in locations around
the world: Cayeli, Pyhasalmi, Troilus and Ok Tedi. We also have interests in
two development properties, Las Cruces and Cerattepe, and one pre-development
property, Petaquilla.

This press release is also available at www.inmetmining.com

Third quarter conference call

Will be held on
- Wednesday, October 31, 2007
- 11:30 a.m. (ET)
webcast available at
www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2029280 or
www.inmetmining.com.

You can also dial in by calling
- Local or international: +1.416.644.3421
- Toll-free within North America: +1.800.732.6179

Forward looking information

Securities regulators encourage companies to disclose forward-looking
information to help investors understand a company's future prospects. This
press release contains statements about our future financial condition,
results of operations and business.
These are "forward-looking" because we have used what we know and expect
today to make a statement about the future. Forward-looking statements usually
include words such as may, expect, anticipate, believe or other similar words.
We believe the expectations reflected in these forward-looking statements are
reasonable. However, actual events and results could be substantially
different because of the risks and uncertainties associated with our business
or events that happen after the date of this press release. You should not
place undue reliance on forward-looking statements. As a general policy, we do
not update forward-looking statements except as required by securities laws
and regulations.

INMET MINING CORPORATION
Non-GAAP measures

Reconciliation of copper cash costs to statements of earnings

-------------------------------------------------------------------------
(millions of Canadian three months nine months
dollars, except where ended September 30 ended September 30
otherwise noted) 2007 2006 2007 2006
-------------------------------------------------------------------------
Cost of sales per
financial statements $51 $52 $168 $160
Smelter processing charges
and freight per financial
statements 41 57 156 167
Zinc, gold and other sales (78) (84) (308) (261)
Inventory and receivable
changes (3) (5) 15 (10)
Less - non-cash items 1 (1) (5) (3)
-------------------------------------------------------------------------
Operating costs net of
metal credits $12 $19 $26 $53
-------------------------------------------------------------------------
US $ to C$ exchange rate $1.04 $1.12 $1.11 $1.13
Inmet's share of copper
production
(000's pounds) 40,200 44,000 122,300 129,500
-------------------------------------------------------------------------
Copper cash cost
(per pound) US $0.28 US $0.38 US $0.19 US $0.36
-------------------------------------------------------------------------

Reconciliation of gold cash costs to statements of earnings

-------------------------------------------------------------------------
(millions of Canadian three months nine months
dollars, except where ended September 30 ended September 30
otherwise noted) 2007 2006 2007 2006
-------------------------------------------------------------------------
Cost of sales per
financial statements $18 $20 $58 $56
Smelter processing
charges and freight
per financial statements 1 3 6 8
Copper and other sales (6) (8) (18) (22)
Inventory and receivable
changes 1 (1) (1) 1
-------------------------------------------------------------------------
Operating costs net of
metal credits $14 $14 $45 $43
-------------------------------------------------------------------------
US $ to C$ exchange rate $1.04 $1.12 $1.11 $1.13
Inmet's share of gold
production (ounces) 36,400 34,600 104,700 108,600
-------------------------------------------------------------------------
Gold cash cost
(per ounce) US $367 US $366 US $384 US $350
-------------------------------------------------------------------------

Reconciliation of net income to adjusted net income

-------------------------------------------------------------------------
(thousands of Canadian three months nine months
dollars, except where ended September 30 ended September 30
otherwise noted) 2007 2006 2007 2006
-------------------------------------------------------------------------
Net income per
financial statements $114,836 $111,582 $353,964 $323,233
Deduct gain on sale
of Wolfden in 2007
and Izok in 2006 - - 11,730 23,905
-------------------------------------------------------------------------
Adjusted net income $114,836 $111,582 $342,234 $299,328
-------------------------------------------------------------------------
Weighted average
shares outstanding 48,278 48,274 48,278 48,190
-------------------------------------------------------------------------
Adjusted net income
per share $2.38 $2.31 $7.09 $6.21
-------------------------------------------------------------------------

Reconciliation of operating cash flow to operating cash flow before
working capital

-------------------------------------------------------------------------
(thousands of Canadian three months nine months
dollars, except where ended September 30 ended September 30
otherwise noted) 2007 2006 2007 2006
-------------------------------------------------------------------------
Operating cash flow per
financial statements $108,315 $150,885 $351,026 $356,769
Deduct: Net change in
non-cash working
capital per financial
statements (21,221) 21,399 (21,847) 36,306
-------------------------------------------------------------------------
Operating cash flow
before working capital $129,536 $129,486 $372,873 $320,463
-------------------------------------------------------------------------
Weighted average shares
outstanding 48,278 48,274 48,278 48,190
-------------------------------------------------------------------------
Operating cash flow
before working
capital per share $2.68 $2.68 $7.72 $6.65
-------------------------------------------------------------------------



INMET MINING CORPORATION
Quarterly review
(unaudited)

Latest Four Quarters
-------------------------------------------------------------------------
(thousands of Canadian 2007 2007 2007 2006
dollars, except per Third Second First Fourth
share amounts) quarter quarter quarter quarter
-------------------------------------------------------------------------
STATEMENTS OF EARNINGS
Gross sales $ 272,293 $ 320,018 $ 286,614 $ 258,911
Smelter processing
charges and freight (42,557) (55,413) (64,606) (65,005)
Cost of sales (69,617) (78,068) (79,240) (66,593)
Depreciation (8,739) (8,039) (9,415) (9,057)
-------------------------------------------------
151,380 178,498 133,353 118,256
Corporate development
and exploration (2,475) (1,836) (842) (4,136)
General and
administration (2,674) (2,162) (2,840) (6,128)
Investment and other
income 6,784 13,302 7,290 16,697
Interest expense (424) (424) (438) (425)
Capital tax expense (273) (274) (274) -
Income tax expense (37,649) (48,509) (35,376) (26,679)
Non-controlling interest 167 (545) 205 (165)
-------------------------------------------------
Net income $ 114,836 $ 138,050 $ 101,078 $ 97,420
-------------------------------------------------
Net income per common
share $ 2.38 $ 2.86 $ 2.09 $ 2.02
-------------------------------------------------
Diluted net income
per common share $ 2.37 $ 2.86 $ 2.09 $ 2.02
-------------------------------------------------

Previous Four Quarters
-------------------------------------------------------------------------
(thousands of Canadian 2006 2006 2006 2005
dollars, except per Third Second First Fourth
share amounts) quarter quarter quarter quarter
-------------------------------------------------------------------------
STATEMENTS OF EARNINGS
Gross sales $ 301,100 $ 317,624 $ 210,234 $ 190,901
Smelter processing
charges and freight (60,270) (63,668) (51,662) (46,131)
Cost of sales (73,892) (78,425) (65,788) (67,305)
Depreciation (9,025) (8,225) (7,265) (7,879)
-------------------------------------------------
157,913 167,306 85,519 69,586
Corporate development
and exploration (2,708) (1,456) (1,454) (2,893)
General and
administration (2,618) (2,624) (2,370) (2,119)
Investment and other
income 2,257 2,587 25,698 985
Interest expense (412) (391) (391) (392)
Capital tax (expense)
recovery 41 (246) (245) (499)
Income tax expense (42,902) (33,240) (27,196) (19,022)
Non-controlling interest 11 154 - -
-------------------------------------------------
Net income $ 111,582 $ 132,090 $ 79,561 $ 45,646
-------------------------------------------------
Net income per common
share $ 2.31 $ 2.74 $ 1.65 $ 0.95
-------------------------------------------------
Diluted net income
per common share $ 2.31 $ 2.74 $ 1.64 $ 0.95
-------------------------------------------------



INMET MINING CORPORATION
Consolidated balance sheets

September 30 December 31
(thousands of Canadian dollars) 2007 2006
-------------------------------------------------------------------------
(unaudited)
Assets

Current assets:
Cash and short-term investments $814,584 $640,186
Restricted cash (note 5) 9,668 -
Accounts receivable 136,530 122,645
Inventories 53,123 58,323
Future income tax asset 6,150 7,567
------------------------
1,020,055 828,721

Restricted cash (note 5) 36,699 35,759

Property, plant and equipment 758,041 548,637

Investments (note 6) 28,628 53,002

Future income tax asset 13,952 21,750

Deferred charges - 2,408

Derivatives (note 7) 28,485 -

Other assets 25,658 42,663
------------------------
$1,911,518 $1,532,940
-------------------------------------------------------------------------


Liabilities

Current liabilities:
Accounts payable and accrued liabilities $165,868 $163,106


Long-term debt (note 8) 204,703 109,080

Reclamation liabilities 72,142 65,812

Derivatives (note 7) 42,549 -

Other liabilities 19,869 30,617

Future income tax liabilities 36,303 42,366

Non-controlling interest 50,675 49,125
------------------------
592,109 460,106
------------------------

Commitments (note 9)

Shareholders' equity

Share capital 337,464 337,338

Contributed surplus 64,592 66,999

Stock based compensation 1,009 915

Retained earnings 1,018,141 669,385

Accumulated other comprehensive loss (note 10) (101,797) (1,803)
------------------------

1,319,409 1,072,834
------------------------

$1,911,518 $1,532,940
-------------------------------------------------------------------------
(see accompanying notes)



INMET MINING CORPORATION
Segmented balance sheets

2007 As at September 30

(unaudited) CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Assets
Cash and short-term
investments $372,026 $285,733 $108,951 $ -
Other current assets 12,445 44,791 46,837 24,788
Restricted cash 14,661 - - 27,426
Property, plant and
equipment 661 112,235 64,707 -
Investments 28,628 - - -
Derivatives - - - -
Other assets 26,834 431 - 6,288
-----------------------------------------------
$455,255 $443,190 $220,495 $58,502
-----------------------------------------------
-----------------------------------------------

Liabilities
Current liabilities $6,581 $37,856 $27,761 $12,112
Long-term debt 15,839 - - -
Reclamation liabilities 25,354 3,095 12,701 4,426
Derivatives - - - 27,740
Other liabilities 6,311 4,398 - -
Future income tax
liabilities - 17,918 6,642 -
Non-controlling interest - - - -
-----------------------------------------------
$54,085 $63,267 $47,104 $44,278
-----------------------------------------------
-----------------------------------------------


(unaudited) OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Assets
Cash and short-term $36,183 $11,691 $814,584
investments 43,342 33,268 205,471
Other current assets 11,569 10,469 64,125
Restricted cash
Property, plant and 50,549 502,463 730,615
equipment - - 28,628
Investments - 28,485 28,485
Derivatives 3,703 2,354 39,610
----------------------- -----------
Other assets $145,346 $588,730 $1,911,518
----------------------- -----------
----------------------- -----------


Liabilities $27,339 $54,219 $165,868
Current liabilities - 188,864 204,703
Long-term debt 15,334 11,232 72,142
Reclamation liabilities 11,576 3,233 42,549
Derivatives 1,348 7,812 19,869
Other liabilities
Future income tax - 11,743 36,303
liabilities - 50,675 50,675
----------------------- -----------
Non-controlling interest $55,597 $327,778 $592,109
----------------------- -----------
----------------------- -----------

2006 As at December 31

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Assets
Cash and short-term
investments $267,277 $176,676 $119,260 $ -
Other current assets 9,690 55,776 68,897 18,104
Restricted cash 14,300 - - -
Property, plant and
equipment 570 117,464 74,873 33,277
Investments 53,002 - - -
Deferred charges - - - 2,408
Other assets 32,052 486 - 6,245
-----------------------------------------------
$376,891 $350,402 $263,030 $60,034
-----------------------------------------------
-----------------------------------------------

Liabilities
Current liabilities $11,698 $37,879 $35,130 $19,780
Long-term debt 16,786 - - -
Reclamation liabilities 25,507 3,467 13,175 4,268
Other liabilities 8,035 3,891 - 8,657
Future income tax
liabilities - 20,433 7,025 -
Non-controlling interest - - - -
-----------------------------------------------
$62,026 $65,670 $55,330 $32,705
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Assets
Cash and short-term $44,689 $32,284 $640,186
investments 26,157 9,911 188,535
Other current assets 10,982 10,477 35,759
Restricted cash
Property, plant and 42,489 279,964 548,637
equipment - - 53,002
Investments - - 2,408
Deferred charges 805 24,825 64,413
----------------------- -----------
Other assets $125,122 $357,461 $1,532,940
----------------------- -----------
----------------------- -----------


Liabilities $37,391 $21,228 $163,106
Current liabilities - 92,294 109,080
Long-term debt 17,568 1,827 65,812
Reclamation liabilities 1,572 8,462 30,617
Other liabilities
Future income tax 2,186 12,722 42,366
liabilities - 49,125 49,125
----------------------- -----------
Non-controlling interest $58,717 $185,658 $460,106
----------------------- -----------
----------------------- -----------


INMET MINING CORPORATION
Consolidated statements of earnings
(unaudited)

(thousands of Canadian Three Months Ended Nine Months Ended
dollars except per September 30 September 30
share amounts) 2007 2006 2007 2006
--------------------------------------------------- ---------------------

Gross sales $272,293 $301,100 $878,925 $828,958

Smelter processing
charges and freight (42,557) (60,270) (162,576) (175,600)

Cost of sales (69,617) (73,892) (226,925) (218,105)

Depreciation (8,739) (9,025) (26,193) (24,515)

--------------------------------------------------- ---------------------
151,380 157,913 463,231 410,738


Corporate development
and exploration (2,475) (2,708) (5,573) (5,618)

General and
administration (2,674) (2,618) (7,676) (7,612)

Investment and other
income (note 11) 6,784 2,257 27,796 30,542

Interest expense (424) (412) (1,286) (1,194)

Capital tax expense (273) 41 (821) (450)

Income tax expense
(note 12) (37,649) (42,902) (121,534) (103,338)

Non-controlling
interest 167 11 (173) 165

--------------------------------------------------- ---------------------

Net income $114,836 $111,582 $353,964 $323,233
--------------------------------------------------- ---------------------

Basic net income per
common share (note 13) $2.38 $2.31 $7.33 $6.71
--------------------------------------------------- ---------------------

Diluted net income
per common share
(note 13) $2.37 $2.31 $7.32 $6.70
--------------------------------------------------- ---------------------

Weighted average shares
outstanding (000's) 48,278 48,274 48,278 48,190
--------------------------------------------------- ---------------------
(see accompanying notes)



INMET MINING CORPORATION
Segmented statements of earnings
(Unaudited)

2007 For the nine months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Gross sales $ - $337,606 $201,574 $81,061
Smelter processing
charges and freight - (74,944) (46,697) (6,191)
Cost of sales (1,462) (65,996) (37,886) (57,887)
Depreciation - (6,222) (6,558) (7,500)
-----------------------------------------------
(1,462) 190,444 110,433 9,483

Corporate development
and exploration (3,152) (1,160) (1,571) 310
General and
administration (7,676) - - -
Investment and other
income 28,360 (4,107) - 4,188
Interest expense (1,286) - - -
Capital tax expense (821) - - -
Income tax expense (1,157) (40,489) (24,711) -
Non-controlling interest - - - -
-----------------------------------------------

Net income $12,806 $144,688 $84,151 $13,981
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)


Gross sales $258,684 $ - $878,925
Smelter processing
charges and freight (34,744) - (162,576)
Cost of sales (63,694) - (226,925)
Depreciation (5,913) - (26,193)
----------------------- -----------
154,333 - 463,231

Corporate development
and exploration - - (5,573)
General and
administration - - (7,676)
Investment and other
income (1,492) 847 27,796
Interest expense - - (1,286)
Capital tax expense - - (821)
Income tax expense (54,923) (254) (121,534)
Non-controlling interest - (173) (173)
----------------------- -----------

Net income $97,918 $420 $353,964
----------------------- -----------
----------------------- -----------


2006 For the nine months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Gross sales $ - $282,694 $185,678 $77,515
Smelter processing
charges and freight - (72,503) (49,307) (8,214)
Cost of sales (1,368) (55,092) (35,999) (56,422)
Depreciation - (5,546) (6,284) (8,074)
-----------------------------------------------
(1,368) 149,553 94,088 4,805

Corporate development
and exploration (1,687) (844) (1,593) (944)
General and
administration (7,612) - - -
Investment and other
income 28,380 2,162 - -
Interest expense (1,194) - - -
Capital tax expense (450) - - -
Income tax expense - (21,810) (21,215) -
Non-controlling interest - - - -
-----------------------------------------------

Net income (loss) $16,069 $129,061 $71,280 $3,861
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)


Gross sales $283,071 $ - $828,958
Smelter processing
charges and freight (45,576) - (175,600)
Cost of sales (69,224) - (218,105)
Depreciation (4,611) - (24,515)
----------------------- -----------
163,660 - 410,738

Corporate development
and exploration - (550) (5,618)
General and
administration - - (7,612)
Investment and other
income - - 30,542
Interest expense - - (1,194)
Capital tax expense - - (450)
Income tax expense (60,313) - (103,338)
Non-controlling interest - 165 165
----------------------- -----------

Net income (loss) $103,347 ($385) $323,233
----------------------- -----------
----------------------- -----------

2007 For the three months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Gross sales $ - $107,664 $60,427 $24,970
Smelter processing
charges and freight - (19,474) (12,983) (1,478)
Cost of sales (619) (20,518) (11,579) (17,755)
Depreciation - (1,654) (1,764) (2,784)
-----------------------------------------------
(619) 66,018 34,101 2,953

Corporate development
and exploration (1,464) (300) (552) (159)
General and
administration (2,674) - - -
Investment and other
income (expense) 7,927 (2,276) - 3,397
Interest expense (424) - - -
Capital tax expense (273) - - -
Income tax expense (386) (13,055) (7,425) -
Non-controlling interest - - - -
-----------------------------------------------

Net income (loss) $2,087 $50,387 $26,124 $6,191
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Gross sales $79,232 $ - $272,293
Smelter processing
charges and freight (8,622) - (42,557)
Cost of sales (19,146) - (69,617)
Depreciation (2,537) - (8,739)
----------------------- -----------
48,927 - 151,380

Corporate development
and exploration - - (2,475)
General and
administration - - (2,674)
Investment and other
income (expense) (1,492) (772) 6,784
Interest expense - - (424)
Capital tax expense - - (273)
Income tax expense (17,015) 232 (37,649)
Non-controlling interest - 167 167
----------------------- -----------

Net income (loss) $30,420 ($373) $114,836
----------------------- -----------
----------------------- -----------


2006 For the three months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Gross sales $ - $105,916 $64,436 $29,274
Smelter processing
charges and freight - (25,713) (15,111) (3,127)
Cost of sales (414) (18,034) (11,135) (20,909)
Depreciation - (1,822) (2,336) (3,123)
-----------------------------------------------
(414) 60,347 35,854 2,115

Corporate development
and exploration (830) (472) (593) (775)
General and
administration (2,618) - - -
Investment and other
income (expense) 3,201 (944) - -
Interest expense (412) - - -
Capital tax expense 41 - - -
Income tax expense - (12,508) (8,186) -
Non-controlling interest - - - -
-----------------------------------------------

Net income (loss) ($1,032) $46,423 $27,075 $1,340
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Gross sales $101,474 $ - $301,100
Smelter processing
charges and freight (16,319) - (60,270)
Cost of sales (23,400) - (73,892)
Depreciation (1,744) - (9,025)
----------------------- -----------
60,011 - 157,913

Corporate development
and exploration - (38) (2,708)
General and
administration - - (2,618)
Investment and other
income (expense) - - 2,257
Interest expense - - (412)
Capital tax expense - - 41
Income tax expense (22,208) - (42,902)
Non-controlling interest - 11 11
----------------------- -----------

Net income (loss) $37,803 ($27) $111,582
----------------------- -----------
----------------------- -----------



INMET MINING CORPORATION
Consolidated statements of cash flows
(unaudited)

Three Months Ended Nine Months Ended
(thousands of Canadian September 30 September 30
dollars) 2007 2006 2007 2006
--------------------------------------------------- ---------------------

Cash provided by (used in)
operating activities (1)

Net income $114,836 $111,582 $353,964 $323,233
Add (deduct) items not
affecting cash:
Gain on disposition of
investments (note 11) - - (11,730) (24,291)
Depreciation 8,739 9,025 26,193 24,515
Future income tax 2,873 4,828 (1,507) (9,443)
Accretion expense on
reclamation liabilities 907 824 2,710 2,575
Non-controlling interest (167) (11) 173 (165)
Other 3,294 3,666 5,020 5,509
Reclamation costs (946) (428) (1,950) (1,470)
Net change in non-cash
working capital (note 4) (21,221) 21,399 (21,847) 36,306
---------------------- ---------------------
108,315 150,885 351,026 356,769
---------------------- ---------------------

Cash provided by (used in)
investing activities

Capital spending (117,989) (49,936) (252,003) (87,040)
Acquisition and disposition
of investments, net (553) 2,105 50,170 3,734
Purchase of short-term
investments (173,117) (152,432) (35,586) (233,627)
Other - (67) (43) (262)
---------------------- ---------------------
(291,659) (200,330) (237,462) (317,195)
---------------------- ---------------------

Cash provided by (used in)
financing activities

Long-term debt:
Borrowings (note 8) 35,929 9,927 73,938 37,051
Repayment (note 8) (8,604) - (8,604) -
Funding by non-controlling
shareholder 13,418 - 39,528 9,246
Financial assurance deposits 4,764 (4,737) (12,651) (6,904)
Dividends paid on common
shares - - (4,827) (4,827)
Other (1,514) (307) (4,085) (340)
---------------------- ---------------------
43,993 4,883 83,299 34,226
---------------------- ---------------------


Foreign exchange loss on
cash held in foreign
currency (22,541) (207) (56,590) (2,058)
---------------------- ---------------------

Increase (decrease) in cash (161,892) (44,769) 140,273 71,742

Cash:
Beginning of period 686,775 368,406 384,610 251,895
---------------------- ---------------------
End of period 524,883 323,637 524,883 323,637

Short-term investments 289,701 232,194 289,701 232,194
---------------------- ---------------------

Cash and short-term
investments $814,584 $555,831 $814,584 $555,831
--------------------------------------------------- ---------------------
(see accompanying notes)

(1) Cash used in operations
includes the following
payments:
Interest $3,187 $605 $5,568 $1,184
Taxes $50,830 $41,822 $115,569 $78,339
--------------------------------------------------- ---------------------



INMET MINING CORPORATION
Segmented statements of cash flows
(unaudited)

2007 For the nine months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital $5,584 $158,070 $91,006 $16,324
Net change in non-cash
working capital (7,444) 5,863 12,673 (6,801)
-----------------------------------------------
(1,860) 163,933 103,679 9,523
-----------------------------------------------
Cash provided by (used in)
investing activities
Capital spending (145) (20,259) (2,071) (1,457)
Acquisition and
disposition of
investment, net 50,170 - - -
Sale (purchase) of
short-term investments (62,323) 16,575 - -
Other - - - (43)
-----------------------------------------------
(12,298) (3,684) (2,071) (1,500)
-----------------------------------------------
Cash provided by (used in)
financing activities (6,472) - - (3,000)
-----------------------------------------------

Foreign exchange change
on cash held in foreign
currency - (39,914) (7,268) -

Intergroup funding
(distributions) 63,056 6,203 (104,649) (5,023)
-----------------------------------------------

Increase (decrease)
in cash 42,426 126,538 (10,309) -
Cash:
Beginning of period 39,899 159,195 119,260 -
-----------------------------------------------
End of period 82,325 285,733 108,951 -
Short-term investments 289,701 - - -
-----------------------------------------------

Cash and short-term
investments $372,026 $285,733 $108,951 $ -
-----------------------------------------------
-----------------------------------------------



OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)


Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital $101,889 $ - $372,873
Net change in non-cash
working capital (26,138) $ - (21,847)
----------------------- -----------
75,751 - 351,026
----------------------- -----------
Cash provided by (used in)
investing activities
Capital spending (21,414) (206,657) (252,003)
Acquisition and
disposition of
investment, net - - 50,170
Sale (purchase) of
short-term investments 10,162 - (35,586)
Other - - (43)
----------------------- -----------
(11,252) (206,657) (237,462)
----------------------- -----------
Cash provided by (used in)
financing activities (1,659) 94,430 83,299
----------------------- -----------

Foreign exchange change
on cash held in foreign
currency (8,348) (1,060) (56,590)
----------------------- -----------

Intergroup funding
(distributions) (52,281) 92,694 -
----------------------- -----------

Increase (decrease)
in cash 2,211 (20,593) 140,273
Cash:
Beginning of period 33,972 32,284 384,610
----------------------- -----------
End of period 36,183 11,691 524,883
Short-term investments - - 289,701
----------------------- -----------

Cash and short-term
investments $36,183 $11,691 $814,584
----------------------- -----------
----------------------- -----------


2006 For the nine months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)


Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital ($8,352) $129,503 $79,036 $14,756
Net change in non-cash
working capital (5,611) 19,684 (8,219) (2,763)
-----------------------------------------------
(13,963) 149,187 70,817 11,993
-----------------------------------------------
Cash provided by (used in)
investing activities
Capital spending (85) (14,105) (2,569) (2,425)
Acquisition and
disposition of
investments, net 1,629 - 2,105 -
Purchase of short-term
investments (125,454) (108,173) - -
Other - - - (262)
-----------------------------------------------
(123,910) (122,278) (464) (2,687)
-----------------------------------------------
Cash used in financing
activities (4,494) - - -
-----------------------------------------------

Foreign exchange change
on cash held in foreign
currency - (1,891) 2,116 -
-----------------------------------------------

Intergroup funding
(distributions) 111,716 (14,581) (13,143) (9,306)
-----------------------------------------------

Increase (decrease)
in cash (30,651) 10,437 59,326 -
Cash:
Beginning of period 123,843 36,578 58,138 -
-----------------------------------------------
End of period 93,192 47,015 117,464 -
Short-term investments 125,454 106,740 - -
-----------------------------------------------

Cash and short-term
investments $218,646 $153,755 $117,464 $ -
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital $106,070 ($550) $320,463
Net change in non-cash
working capital 32,665 550 36,306
----------------------- -----------
138,735 - 356,769
----------------------- -----------
Cash provided by (used in)
investing activities
Capital spending (6,605) (61,251) (87,040)
Acquisition and
disposition of
investments, net - - 3,734
Purchase of short-term
investments - - (233,627)
Other - - (262)
----------------------- -----------
(6,605) (61,251) (317,195)
----------------------- -----------
Cash used in financing
activities (1,712) 40,432 34,226
----------------------- -----------

Foreign exchange change
on cash held in foreign
currency (2,523) 240 (2,058)
----------------------- -----------

Intergroup funding
(distributions) (99,560) 24,874 -
----------------------- -----------

Increase (decrease)
in cash 28,335 4,295 71,742
Cash:
Beginning of period 16,031 17,305 251,895
----------------------- -----------
End of period 44,366 21,600 323,637
Short-term investments - - 232,194
----------------------- -----------

Cash and short-term
investments $44,366 $21,600 $555,831
----------------------- -----------
----------------------- -----------


2007 For the three months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)

Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital $4,192 $53,713 $28,053 $5,775
Net change in non-cash
working capital (748) (12,111) 24,633 (967)
-----------------------------------------------
3,444 41,602 52,686 4,808
-----------------------------------------------
Cash provided by (used in)
investing activities
Capital spending (14) (7,109) (1,347) (1,050)
Acquisition of
investments (553) - - -
Sale (purchase) of
short-term investments (190,024) (452) - -
-----------------------------------------------
(190,591) (7,561) (1,347) (1,050)
-----------------------------------------------
Cash provided by (used in)
financing activities (673) - - (1,000)
-----------------------------------------------

Foreign exchange change
on cash held in foreign
currency - (18,399) (2,338) -
-----------------------------------------------

Intergroup funding
(distributions) (1,946) 4,560 (5,077) (2,758)
-----------------------------------------------

Increase (decrease)
in cash (189,766) 20,202 43,924 -
Cash:
Beginning of period 272,091 265,531 65,027 -
-----------------------------------------------
End of period 82,325 285,733 108,951 -
Short-term investments 289,701 - - -
-----------------------------------------------

Cash and short-term
investments $372,026 $285,733 $108,951 $ -
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital $37,803 $ - $129,536
Net change in non-cash
working capital (32,028) - (21,221)
----------------------- -----------
5,775 - 108,315
----------------------- -----------
Cash provided by (used in)
investing activities
Capital spending (8,603) (99,866) (117,989)
Acquisition of investments - - (553)
Sale (purchase) of
short-term investments 17,359 - (173,117)
----------------------- -----------
8,756 (99,866) (291,659)
----------------------- -----------
Cash provided by (used in)
financing activities (809) 46,475 43,993
----------------------- -----------

Foreign exchange change
on cash held in foreign
currency (2,212) 408 (22,541)
----------------------- -----------

Intergroup funding
(distributions) (26,107) 31,328 -
----------------------- -----------

Increase (decrease)
in cash (14,597) (21,655) (161,892)
Cash:
Beginning of period 50,780 33,346 686,775
----------------------- -----------
End of period 36,183 11,691 524,883
Short-term investments - - 289,701
----------------------- -----------

Cash and short-term
investments $36,183 $11,691 $814,584
----------------------- -----------
----------------------- -----------


2006 For the three months ended September 30

CORPORATE CAYELI PYHASALMI TROILUS
-------------------------------------------------------------------------
(thousands of Canadian
dollars) (Turkey) (Finland) (Canada)


Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital ($2,658) $55,449 $29,490 $6,194
Net change in non-cash
working capital (236) 8,575 24 7,144
-----------------------------------------------
(2,894) 64,024 29,514 13,338
-----------------------------------------------
Cash provided by (used in)
investing activities
Capital spending (12) (5,081) (700) (1,299)
Acquisition and
disposition of
investments, net - - 2,105 -
Purchase of short-term
investments (44,259) (108,173) - -
Other - - - (67)
-----------------------------------------------
(44,271) (113,254) 1,405 (1,366)
-----------------------------------------------
Cash used in financing
activities - - - -
-----------------------------------------------

Foreign exchange change
on cash held in foreign
currency - 1,099 (763) -
-----------------------------------------------

Intergroup funding
(distributions) 81,406 (15,298) (9,560) (11,972)
-----------------------------------------------

Increase (decrease)
in cash 34,241 (63,429) 20,596 -
Cash:
Beginning of period 58,951 110,444 96,868 -
-----------------------------------------------
End of period 93,192 47,015 117,464 -
Short-term investments 125,454 106,740 - -
-----------------------------------------------

Cash and short-term
investments $218,646 $153,755 $117,464 $ -
-----------------------------------------------
-----------------------------------------------


OK TEDI LAS CRUCES TOTAL
------------------------------------------------- -----------
(thousands of Canadian (Papua New
dollars) Guinea) (Spain)

Cash provided by (used in)
operating activities
Before net change in
non-cash working
capital $41,049 ($38) $129,486
Net change in non-cash
working capital 5,854 38 21,399
----------------------- -----------
46,903 - 150,885
----------------------- -----------
Cash provided by (used in)
investing activities
Capital spending (3,167) (39,677) (49,936)
Acquisition and
disposition of
investments, net - - 2,105
Purchase of short-term
investments - - (152,432)
Other - - (67)
----------------------- -----------
(3,167) (39,677) (200,330)
----------------------- -----------
Cash used in financing
activities (851) 5,734 4,883
----------------------- -----------

Foreign exchange change
on cash held in foreign
currency 32 (575) (207)
----------------------- -----------

Intergroup funding
(distributions) (45,503) 927 -
----------------------- -----------

Increase (decrease)
in cash (2,586) (33,591) (44,769)
Cash:
Beginning of period 46,952 55,191 368,406
----------------------- -----------
End of period 44,366 21,600 323,637
Short-term investments - - 232,194
----------------------- -----------

Cash and short-term
investments $44,366 $21,600 $555,831
----------------------- -----------
----------------------- -----------



INMET MINING CORPORATION
Consolidated statements of retained earnings
(unaudited)

Three Months Ended Nine Months Ended
(thousands of Canadian September 30 September 30
dollars) 2007 2006 2007 2006
--------------------------------------------------- ---------------------


Retained earnings, beginning
of period, as previously
reported $903,305 $465,210 $669,385 $258,386

Adjustment for financial
instruments (note 2) - - (381) -
---------------------- ---------------------

Retained earnings, restated 903,305 465,210 669,004 258,386

Net income 114,836 111,582 353,964 323,233

Dividends on common shares - - (4,827) (4,827)
--------------------------------------------------- ---------------------

Retained earnings, end
of period $1,018,141 $576,792 $1,018,141 $576,792
--------------------------------------------------- ---------------------
(see accompanying notes)


Consolidated statements of comprehensive income
(unaudited)

Three Months Ended Nine Months Ended
(thousands of Canadian September 30 September 30
dollars) 2007 2006 2007 2006
--------------------------------------------------- ---------------------


Net income $114,836 $111,582 $353,964 $323,233

Other comprehensive income
(loss) for the period(1):
Changes in fair value of
gold and copper forward
sales contracts (3,411) - (2,559) -

Changes in fair value of
interest rate swap
contracts (1,417) - (1,537) -

Changes in fair value of
foreign exchange forward
contracts 5,780 - 6,071 -

Changes in fair value of
investments 1,074 - 20,382 -

Currency translation
adjustments (39,269) (968) (99,203) 2,381

Less; reclassification to
net income of gains/losses
realized on:
Gain on sale of investment
(note 11) - - (11,730) -

Troilus gold hedges loss 4,963 - 15,005 -

Amortization of deferred
Troilus gold hedges (4,188) - (4,188) -

Foreign exchange loss on
reduction of investment
in Ok Tedi 1,580 - 3,311 -
---------------------- ---------------------
(34,888) (968) (74,448) 2,381
---------------------- ---------------------

Comprehensive income $79,948 $110,614 $279,516 $325,614
--------------------------------------------------- ---------------------
(see accompanying notes)

(1) Net of applicable income tax and non-controlling interest.



INMET MINING CORPORATION
Notes to the consolidated financial statements

1. Significant accounting policies

Our interim consolidated financial statements do not include all of
the disclosure required for annual financial statements under
generally accepted accounting principles (GAAP), and they have not
been reviewed by our external auditors. These statements do, however,
follow the same accounting policies and methods of application used
in our most recent annual consolidated financial statements, except
for the differences explained in note 2. You should read our interim
statements in conjunction with our annual statements, which you can
find in our 2006 annual report.

2. Changes in accounting policies

Effective January 1, 2007, we adopted the following new CICA Handbook
sections:

Section 1506 - Accounting changes

This section specifies that a voluntary change in accounting
principles:

(a) can only be made if the change results in more reliable and
relevant information
(b) must be accompanied by restated amounts for prior periods and the
reasons for the change
(c) must describe the nature and amount of the change, if it is a
change to an estimate.

We have not made any voluntary change in accounting principles since
we adopted these standards.

The following three sections do not permit us to restate prior
periods.

Section 3855 - Financial instruments - recognition and measurement

This section establishes standards for recognizing and measuring
financial assets, financial liabilities and non-financial
derivatives. It requires companies to recognize financial assets and
liabilities, including derivatives, on the balance sheet when we
become a party to the contractual provisions of a financial
instrument or a non-financial derivative contract. All financial
instruments should be measured at fair value on initial recognition
except for certain related party transactions. Fair value is the
amount at which an item could be exchanged between willing parties.

Measurement in subsequent periods depends on whether the financial
instruments have been classified as held-for-trading, available-for-
sale, held-to-maturity, loans and receivables, or other liabilities.
We have classified our financial instruments as follows, and applied
the following accounting principles:

Cash and short-term investments, accounts receivable, restricted cash
and accounts payable and accrued liabilities

These are classified as held-for-trading and recorded at fair value.
We record any changes in their fair value in net income. We calculate
fair value using published price quotations in an active market,
where there is one. Our December 31, 2006 carrying values for these
assets and liabilities already approximated fair value, because of
their short terms to maturity, and we did not make any adjustments to
the opening values.

Most of our sales contracts set prices on a specified future date
based upon market commodity prices. Variations between the prices
recorded on the date of revenue recognition and the actual final
price due to changes in market prices result in the existence of an
embedded derivative in accounts receivable. We adjust accounts
receivable every period to reflect the change in the value of the
contract based on the market price in the period, and then record the
change in fair value in revenue once the contract has settled.

Investments

These are classified as available-for-sale and recorded at fair
value. We record changes in their fair value net of tax in other
comprehensive income. The change in fair value of an investment
appears in net income only when it is sold or impaired. We calculate
fair value using the bid price of the investment as quoted in an
active market. We capitalize transaction costs related to purchasing
investments and include these costs in the initial carrying value. We
have made adjustments to the opening values of our investments
(note 6).

Long-term debt

All of our long-term debt is classified as other than held-for-
trading and is accounted for at amortized cost. At December 31, 2006
our long-term debt approximated amortized cost, and we did not make
any adjustments to the opening values (note 8).

We previously capitalized any costs spent to issue debt to Other
assets. Effective January 1, 2007, we will record transaction costs
related to issuing debt in net income or, for development properties,
capitalize them to Property, plant and equipment.

Derivative and other contracts

Non-financial derivative contracts are recorded at fair value on the
balance sheet. We include marked-to-market adjustments on these
instruments in net income, unless the instruments are designated as
part of a cash flow hedge relationship. We identify and separately
account for embedded derivatives in contracts that were entered into
or substantively modified on or after January 1, 2003. We use
settlement date accounting for all contracts to buy or sell financial
assets.

3865 - Hedges

This section specifies when and how we can use hedge accounting for
the following hedging strategies: fair value hedges, cash flow hedges
and hedges of a foreign currency exposure of a net investment in a
self-sustaining foreign operation.

We only have cash flow hedging relationships. We recognize the
effective portion of a change in fair value in Other comprehensive
income, and then classify the accumulated amount to net income as the
gains or losses are realized. We recognize the ineffective portion of
a change in fair value in net income.

On January 1, 2007, we designated our existing derivative contracts
related to gold forward sales contracts at Troilus and Ok Tedi, the
foreign exchange forward contract and the interest rate swap contract
at Las Cruces, as part of a cash flow hedge relationship. The fair
values of these contracts are recorded on the balance sheet (note 7).

1530 - Comprehensive income

This section calls for a statement of comprehensive income and its
components. Other comprehensive income (OCI) includes unrealized
gains and losses on our investments, unrealized foreign currency
translation arising from self-sustaining foreign operations, and
changes in the fair value of the effective portion of cash flow
hedging instruments.

The table below shows you the effect of adopting these standards on
our balance sheet as at January 1. We have not restated prior
periods.


(thousands of December 31 January 1 January 1
Canadian dollars) 2006 2007 2007
---------------------------------------------------------------------
Adjustments
on adoption Restated
of new opening
As reported standards Ref balances
Assets
Current assets:
Cash and short-term
investments $ 640,186 $ - $ 640,186
Accounts receivable 122,645 - 122,645
Inventories 58,323 - 58,323
Future income tax asset 7,567 - 7,567
--------------------------------------------
828,721 - 828,721
Restricted cash 35,759 - 35,759
Property, plant and
equipment 548,637 13,795 a 562,432
Investments (note 6) 53,002 3,677 b 56,679
Future income tax asset 21,750 (5,696) d 16,054
Deferred charges 2,408 (2,408) c -
Derivatives (note 7) - 17,965 c 17,965
Other assets 42,663 (13,795) a 28,868
--------------------------------------------
$ 1,532,940 $ 13,538 $ 1,546,478
---------------------------------------------------------------------
Liabilities
Accounts payable and
accrued liabilities $ 163,106 (5,444) c $ 157,662
Long-term debt 109,080 - 109,080
Reclamation liabilities 65,812 - 65,812
Derivatives (note 7) - 51,494 c 51,494
Other liabilities 30,617 (7,958) c 22,659
Future income tax
liabilities 42,366 (2,166) d 40,200
Non-controlling interest 49,125 3,539 d 52,664
--------------------------------------------
460,106 39,465 499,571
--------------------------------------------
Shareholders' equity
Share capital 337,338 - 337,338
Contributed surplus 66,999 - 66,999
Stock based compensation 915 - 915
Retained earnings 669,385 (381) d 669,004
Accumulated other
comprehensive loss
(note 10) - (27,349) d (27,349)
Foreign currency
translation account (1,803) 1,803 e -
--------------------------------------------
1,072,834 (25,927) 1,046,907
--------------------------------------------
$ 1,532,940 $ 13,538 $ 1,546,478
---------------------------------------------------------------------

(a) We have reclassified the cost of issuing debt for the Las Cruces
credit facility to Property, plant and equipment. These costs
were previously capitalized.
(b) We have designated investments we previously accounted for at
cost as available for sale, and recorded them at fair value.
(c) We have reflected derivatives that were previously off balance
sheet at fair value. We have recorded the accumulated ineffective
portion of the hedges in opening retained earnings.
(d) All adjustments are net of tax and non-controlling interest.
(e) We have reclassified the foreign currency translation account to
AOCL.

3. Recently issued accounting pronouncements

(a) In December 2006, the CICA issued Handbook Section 3862, Financial
Instruments - Disclosure and Section 3863, Financial Instruments -
Presentation. Section 3862 replaces the disclosure portion of
Section 3861. It places increased emphasis on disclosing the nature
and extent of risks arising from both recognized and unrecognized
financial instruments, and how these risks are managed. Section 3863
carries forward the presentation requirements from Section 3861.

(b) Additionally in December 2006, the CICA issued Handbook Section 1535,
Capital Disclosures. This Section establishes standards for
disclosing qualitative and quantitative information about an entity's
capital and how it is managed in order to enable users of its
financial statements to evaluate the entity's objectives, policies
and processes for managing capital.

(c) In June 2007, the CICA issued Handbook Section 3031, Inventories.
This Section requires inventory to be recorded at the lower of cost
or net realizable value, which is our current accounting policy. The
section also clarifies the allocation of fixed production overhead,
requires consistent use of either first-in, first-out or weighted
average to measure inventories, and requires that any previous write-
downs be reversed when the value of inventories increases. The amount
of the reversal is limited to the amount of the original write-down.

The above standards will become effective for us beginning on January 1,
2008. We are reviewing these standards, and have not yet determined the
impact, if any, on our consolidated financial statements.

4. Statement of cash flows

The tables below show the components of our net change in non-cash
working capital by segment.

For the nine months ended September 30, 2007
---------------------------------------------------------------------

(thousands) Corporate Cayeli Pyhasalmi Troilus
---------------------------------------------------------------------

Accounts receivable $(2,753) $255 $17,819 $(5,072)
Inventories - 1,247 (704) (1,805)
Accounts payable and
accrued liabilities (1,125) (6,324) (186) 76
Taxes payable (3,548) 10,703 (4,256) -
Other (18) (18) - -
---------------------------------------------------------------------
$(7,444) $5,863 $12,673 $(6,801)
---------------------------------------------------------------------


For the nine months ended September 30, 2007
----------------------------------------------------------
Las
(thousands) Ok Tedi Cruces Total
----------------------------------------------------------
Accounts receivable $(22,800) - $(12,551)
Inventories 483 - (779)
Accounts payable and
accrued liabilities (2,789) - (10,288)
Taxes payable 421 - 3,320
Other (1,453) - (1,549)
----------------------------------------------------------
$(26,138) - $(21,847)
----------------------------------------------------------



For the nine months ended September 30, 2006
---------------------------------------------------------------------

(thousands) Corporate Cayeli Pyhasalmi Troilus
---------------------------------------------------------------------

Accounts receivable $103 $6,794 $(17,319) $912
Inventories - 77 (93) (2,439)
Accounts payable and
accrued liabilities (2,703) 7,862 2,321 (1,236)
Taxes payable (2,248) 4,944 6,872 -
Other (763) 7 - -
---------------------------------------------------------------------
$(5,611) $19,684 $(8,219) $(2,763)
---------------------------------------------------------------------


For the nine months ended September 30, 2006
----------------------------------------------------------
Las
(thousands) Ok Tedi Cruces Total
----------------------------------------------------------

Accounts receivable $4,395 - $(5,115)
Inventories 3,606 - 1,151
Accounts payable and
accrued liabilities 2,140 550 8,934
Taxes payable 22,978 - 32,546
Other (454) - (1,210)
----------------------------------------------------------
$32,665 $550 $36,306
----------------------------------------------------------



For the three months ended September 30, 2007
---------------------------------------------------------------------

(thousands) Corporate Cayeli Pyhasalmi Troilus
---------------------------------------------------------------------

Accounts receivable $(1,040) $(18,705) $23,421 $301
Inventories - 362 (445) (2,045)
Accounts payable and
accrued liabilities 771 3,881 (2,531) 777
Taxes payable (458) 2,346 4,188 -
Other (21) 5 - -
---------------------------------------------------------------------
$(748) $(12,111) $24,633 $(967)
---------------------------------------------------------------------


For the three months ended September 30, 2007
----------------------------------------------------------
Las
(thousands) Ok Tedi Cruces Total

Accounts receivable $(7,884) $ - $(3,907)
Inventories (1,128) - (3,256)
Accounts payable and
accrued liabilities 2,896 - 5,854
Taxes payable (24,983) - (18,907)
Other (929) - (1,005)
----------------------------------------------------------
$(32,028) $ - $(21,221)
----------------------------------------------------------



For the three months ended September 30, 2006
---------------------------------------------------------------------

(thousands) Corporate Cayeli Pyhasalmi Troilus

Accounts receivable $89 $8,847 $(5,261) $5,025
Inventories - (793) (719) 2,242
Accounts payable and
accrued liabilities (441) 4,494 2,273 (123)
Taxes payable (181) (3,968) 3,731 -
Other 297 (5) - -
---------------------------------------------------------------------
$(236) $8,575 $24 $7,144
---------------------------------------------------------------------


For the three months ended September 30, 2006
----------------------------------------------------------
Las
(thousands) Ok Tedi Cruces Total

Accounts receivable $6,001 $ - $14,701
Inventories 1,150 - 1,880
Accounts payable and
accrued liabilities 2,399 38 8,640
Taxes payable (3,070) - (3,488)
Other (626) - (334)
----------------------------------------------------------
$5,854 $38 $21,399
----------------------------------------------------------

5. Restricted cash

The table below shows our restricted cash balances.

---------------------------------------------------------------------
September 30 December 31
(thousands) 2007 2006
---------------------------------------------------------------------
Cash collateralized for letters of credit
- Las Cruces - current $9,668 -
Collateralized cash for letter of credit
facility 14,661 14,300
In trust for Ok Tedi rehabilitation 11,569 10,982
Cash collateralized for letters of credit
- Las Cruces - long-term 10,469 10,477
---------------------------------------------------------------------
$46,367 $35,759
---------------------------------------------------------------------

Cash collateralized letters of credit for Las Cruces are for the
following:

- (euro)6.5 million to secure payments that will ultimately be
used for the construction of the plant
- (euro)3.1 million to secure payments that will ultimately be for
the use of an electrical substation
- (euro)2.5 million to secure payments to local townships that it
will owe once certain licences are granted
- (euro)2.2 million for dewatering and other purposes.

6. Investments

The table below shows our investments.

---------------------------------------------------------------------
(thousands) September 30 January 1 December 31
2007 2007 2006
(fair value) (fair value (historical
- adjusted) cost - as
reported)
---------------------------------------------------------------------
Wolfden Resources Inc.
(note 11) - $39,690 $39,705
Premier Gold Mines Ltd. 22,019 13,041 10,920
Other 6,609 3,948 2,377
---------------------------------------------------------------------
$28,628 $56,679 $53,002
---------------------------------------------------------------------

7. Derivatives

The table below shows the fair value of our derivatives.

---------------------------------------------------------------------
(thousands) September 30 January 1 December 31
2007 2007 2006
(fair value) (fair value (historical
- adjusted) cost - as
reported)
---------------------------------------------------------------------
Derivative asset:
Las Cruces currency
forward sale $28,485 $17,965 -
--------------------------------------------
Derivative liabilities:
Troilus gold forward
sales 27,740 43,156 -
Ok Tedi gold and copper
forward sales 11,576 7,220 -
Las Cruces interest
rate swaps 3,233 1,118 -
---------------------------------------------------------------------
$42,549 $51,494 -
---------------------------------------------------------------------

8. Long-term debt

---------------------------------------------------------------------
September 30 December 31
(thousands) 2007 2006
---------------------------------------------------------------------
Credit facility - Tranche A $104,976 $53,792
- Tranche B 28,332 23,054
Promissory note 15,839 16,786
Loans from non-controlling shareholder 55,556 15,448
---------------------------------------------------------------------
$204,703 $109,080
---------------------------------------------------------------------

Credit facility

This quarter, Las Cruces borrowed an additional (euro)19 million
(2007 year to date - (euro)39 million) under Tranche A, the
US $240 million senior secured facility, and an additional
(euro)6 million (2007 year to date - (euro)11 million) under
Tranche B, the (euro)69 million senior secured bridge financing
facility. During this quarter, Las Cruces repaid (euro)6 million
under Tranche B equal to value-added tax refunds received. The credit
facility loans approximate fair value because the loans accrue
interest at prevailing market rates.

Loans from non-controlling shareholder

This quarter, Las Cruces received (euro)31 million (2007 year to date
- (euro)90 million) in intercompany loan advances. These loans bear
interest at EURIBOR plus 8.55 percent and are due to be repaid on
February 25, 2020. The non-controlling portion of these loans,
(euro)39.2 million, is reflected in long-term debt at September 30,
2007. Loans from non-controlling shareholders approximate fair value
because the loans accrue interest at prevailing market rates.

9. Commitments

Capital commitments

Our operations had the following capital commitments as at
September 30, 2007:

- Las Cruces has committed (euro)122.5 million to engineering,
procurement and construction management and additional
construction work related to the pit and plant.
- Ok Tedi has committed approximately US $75.5 million (our
proportionate share is US $13.6 million) to capital expenditures
related to the mine waste management program.

Community mine continuation agreements

On June 29, Ok Tedi concluded the scheduled mid-term review of the
Community Mine Continuation Agreements (CMCAs) and signed a
memorandum of agreement with most of the affected communities.
Ok Tedi has increased direct compensation funds to four times the
previous level, a commitment of US $110 million over the next six and
a half years. Inmet's share of the CMCA payments will be
US $3 million per year (18 percent of Ok Tedi's contribution)
compared to the approximately US $1 million per year under the prior
agreement.

10. Accumulated other comprehensive loss (AOCL)

The table below shows the components of the beginning and ending
balances of AOCL.

---------------------------------------------------------------------
(thousands)
Unrealized losses on gold forward sales contracts
(net of tax of $2,166) $(37,215)
Unrealized gains on foreign exchange forward contract(1) 8,803
Unrealized losses on interest rate swap contracts(2) (168)
Unrealized gains on investments (net of tax of $643) 3,034
Currency translation adjustment (1,803)
----------
AOCL, January 1, 2007 $(27,349)
Other comprehensive loss for the nine months ending
September 30, 2007 (74,448)
---------------------------------------------------------------------
AOCL, September 30, 2007 $(101,797)
---------------------------------------------------------------------

AOCL September 30, 2007 comprises:
Unrealized losses on gold and copper forward sales
contracts (net of tax of $3,438) $(28,957)
Unrealized gains on foreign exchange forward contract(3) 14,874
Unrealized losses on interest rate swap contracts(4) (1,705)
Unrealized gains on investments (net of tax of $2,384) 11,686
Currency translation adjustment (97,695)
---------------------------------------------------------------------
AOCL, September 30, 2007 $(101,797)
---------------------------------------------------------------------

1. Net of tax of $5,389 and non-controlling interest of $3,773.
2. Net of tax of $103 and non-controlling interest of $72.
3. Net of tax of $9,105 and non-controlling interest of $6,374.
4. Net of tax of $1,045 and non-controlling interest of $730.

The table below shows the breakdown of the currency translation
adjustment included in AOCL.

---------------------------------------------------------------------
September 30 December 31
(thousands) 2007 2006
---------------------------------------------------------------------
Pyhasalmi (euro functional currency) $(5,161) $5,637
Las Cruces (euro functional currency) (8,110) 8,095
Cayeli (US dollar functional currency) (66,008) (9,278)
Ok Tedi (US dollar functional currency) (18,416) (6,257)
---------------------------------------------------------------------
$(97,695) $(1,803)
---------------------------------------------------------------------

The Canadian dollar to US dollar exchange rate was $0.99 at
September 30, 2007, and $1.17 at December 31, 2006. The Canadian
dollar to euro exchange rate was $1.42 at September 30, 2007, and
$1.54 at December 31, 2006.


11. Investment and other income

---------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 2007 2006
---------------------------------------------------------------------
Gain on sale of Izok $- $- $- $23,905
Gain on sale of Wolfden - - 11,730 -
Interest and dividend
income 10,451 4,483 27,015 8,720
Foreign exchange loss (4,695) (2,390) (14,240) (2,610)
Other 1,028 164 3,291 527
---------------------------------------------------------------------
$6,784 $2,257 $27,796 $30,542
---------------------------------------------------------------------

Gain on sale of investments

In 2006, we sold our interest in the Izok development property to
Wolfden Resources Inc., and recorded a gain of $23.9 million. In
exchange, we received 13.5 million common shares of Wolfden and
9.5 million common shares of Premier Gold Mines Ltd. In the second
quarter, we sold our shares in Wolfden to Zinifex Canadian
Enterprises Inc. for cash proceeds of $51.4 million or $3.81
per share, and recorded a gain of $11.7 million.

Interest and dividend income

Interest income was higher this quarter and for the nine months ended
September 30, 2007, compared to the same periods in 2006, because of
higher cash balances.

Foreign exchange

We recorded a foreign exchange loss of $4.7 million during the
quarter because of the revaluation of some of our foreign currency
denominated accounts and cash balances, and the recognition of
deferred foreign exchange losses from dividends from Ok Tedi.

12. Income tax expense

The tables below show our current and future income tax expense.

For the nine months ended September 30, 2007
-------------------------------------------------------------------------
Las
(thousands) Corporate Cayeli Pyhasalmi Ok Tedi Cruces Total
-------------------------------------------------------------------------

Current
income taxes $1,157 $40,131 $24,548 $57,205 $- $123,041
Future
income taxes - 358 163 (2,282) 254 (1,507)
-------------------------------------------------------------------------
$1,157 $40,489 $24,711 $54,923 $254 $121,534
-------------------------------------------------------------------------



For the nine months ended September 30, 2006
-------------------------------------------------------------------------
Las
(thousands) Corporate Cayeli Pyhasalmi Ok Tedi Cruces Total
-------------------------------------------------------------------------

Current
income taxes $- $28,858 $21,143 $62,780 $- $112,781
Future
income taxes - (7,048) 72 (2,467) - (9,443)
-------------------------------------------------------------------------
$- $21,810 $21,215 $60,313 $- $103,338
-------------------------------------------------------------------------



For the three months ended September 30, 2007
-------------------------------------------------------------------------
Las
(thousands) Corporate Cayeli Pyhasalmi Ok Tedi Cruces Total
-------------------------------------------------------------------------

Current
income taxes $386 $14,059 $7,302 $13,029 $- $34,776
Future
income taxes - (1,004) 123 3,986 (232) 2,873
-------------------------------------------------------------------------
$386 $13,055 $7,425 $17,015 $(232) $37,649
-------------------------------------------------------------------------



For the three months ended September 30, 2006
-------------------------------------------------------------------------
Las
(thousands) Corporate Cayeli Pyhasalmi Ok Tedi Cruces Total
-------------------------------------------------------------------------

Current
income taxes $- $9,065 $8,222 $20,787 $- $38,074
Future
income taxes - 3,443 (36) 1,421 - 4,828
-------------------------------------------------------------------------
$- $12,508 $8,186 $22,208 $- $42,902
-------------------------------------------------------------------------

In June 2006, the Turkish government enacted tax legislation that
reduced Cayeli's corporate tax rate to 20 percent, effective
January 1, 2006. Cayeli recorded an income tax recovery of
$10 million for the nine months ended September 30, 2006 from a
reduction in its future income tax liability.

13. Net income per share

The following tables show our calculation of basic and diluted net
income per share.

---------------------------------------------------------------------
three months ended nine months ended
September 30 September 30
(thousands) 2007 2006 2007 2006
---------------------------------------------------------------------
Net income available to
common shareholders $114,836 $111,582 $353,964 $323,233
---------------------------------------------------------------------

(thousands)
Weighted average common
shares outstanding 48,278 48,274 48,278 48,190
Plus incremental shares
from assumed conversions
deferred share units 74 74 74 74
---------------------------------------------------------------------
Diluted weighted average
common shares outstanding 48,352 48,348 48,352 48,264
---------------------------------------------------------------------

(Canadian dollars per share)
---------------------------------------------------------------------
Basic net income per common
share $2.38 $2.31 $7.33 $6.71
Dilutive effect from
assumed conversions of
deferred share units per
common share (0.01) - (0.01) (0.01)
---------------------------------------------------------------------
Diluted net income per
common share $2.37 $2.31 $7.32 $6.70
---------------------------------------------------------------------

Contact Information

  • Inmet Mining Corporation
    Richard Ross
    Chairman and Chief Executive Officer
    (416) 860-3974

    Inmet Mining Corporation
    Jochen Tilk
    President and Chief Operating Officer
    (416) 860-3972