Katanga Mining Announces 2012 Second Quarter Results
August 11 2012 - 8:26PM
PR Newswire (Canada)
ZUG, SWITZERLAND, Aug. 14, 2012 /CNW/ - Katanga Mining Limited
("Katanga" or the "Company") today announces its financial results
for the second quarter of 2012. Katanga's Financial Statements and
Management's Discussion and Analysis will be filed on SEDAR,
www.sedar.com. Highlights during the three and six months ended
June 30, 2012, and Outlook Mining -- During the three months ended
June 30, 2012 ("Q2 2012"), the Company mined 1,300,388 tonnes of
ore (0.3% higher than the three months ended June 30, 2011 ("Q2
2011")) at a grade of 4.18% resulting in contained copper in ore
mined of 54,348 tonnes. During the six months ended June 30, 2012
("H1 2012"), the Company mined 2,531,461 tonnes of ore (8% higher
than the six months ended June 30, 2011 ("H1 2011")) at a grade of
3.88% resulting in contained copper in ore mined of 98,146 tonnes.
-- Ore mined and hoisted at KTO Underground Mine for Q2 2012 was a
record 456,440 tonnes, and a 10% increase over Q2 2011. The average
copper grade for Q2 2012 was 3.71%. For H1 2012, ore mined and
hoisted was 872,885 tonnes, a 9% increase over H1 2011. The average
copper grade for H1 2012 was 3.65%. -- A record 843,948 tonnes of
ore were mined at KOV Open Pit during Q2 2012, 40% above Q2 2011.
The copper grade of ore mined from KOV Open Pit for Q2 2012
averaged 4.43%. For H1 2012 1,658,576 tonnes of ore were mined, 44%
above H1 2011. The copper grade of ore mined averaged 4.00%. Higher
grade ore has become available during the three months ending
September 30, 2012, ("Q3 2012") in Cut 1D as mud has been removed
from the bottom of KOV Open Pit. -- The Kamoto East Pit is
effectively dewatered with 6.6 million cubic metres of water having
been removed. The Kamoto East Pit dewatering allows for more
efficient and cost effective waste management and the potential
development of the Kamoto East mineral resource using underground
mining methods. Processing -- Ore milled at the Kamoto Concentrator
("KTC") for Q2 2012 was 1,232,440 tonnes, an increase of 14% from
Q2 2011 and a production record. For H1 2012, 2,236,717 tonnes were
milled, an increase of 13%. -- Copper produced in metal and
concentrate for Q2 2012 totalled 24,313 tonnes, with copper metal
produced increasing by 2% compared to Q2 2011. For H1 2012, 43,062
tonnes were produced, with copper metal produced increasing by 12%.
-- Cobalt produced totalled 477 tonnes for Q2 2012. In H1 2012,
1,071 tonnes were produced. -- Copper and cobalt production
continued to be adversely affected by recurrent general power
disruptions in the DRC. During Q2 2012, lost production hours
across the operation amounted to approximately 387 hours due to
power disruptions. This amounts to approximately 17 days of lost
production and includes the time from the power disruption until
equipment is operating at pre power disruption capacity. The lost
production hours across the operation for H1 2012 amounted to
approximately 671 hours or 28 days which equates to a month of lost
production time. The lost production time excludes the adverse
impact on equipment availability due to the unplanned shut downs
and subsequent start ups of the equipment due to the power
disruptions. The Company expects power disruptions to decrease
during the second half of 2012 due to a new convertor that is
expected to be commissioned by the end of August 2012 as part of
the World Bank power project and a new synchronous condenser that
is expected to be commissioned at the end of Q3 2012 as part of
Katanga's agreements with Société Nationale d'Électricité
("SNEL"),the DRC's national electricity company, and engineering
contractors to refurbish DRC power generating, transmission and
distribution systems (the "Power Project") (as previously announced
on March 29, 2012). In the medium to long term, improvements in
infrastructure as a result of the Power Project are expected to
improve the reliability and stability of electricity supplies
generally. Financial -- Total sales for Q2 2012, were $102.5
million and for H1 2012 were $237.2 million. -- The sales value of
oxide concentrate available to be shipped but not invoiced as at
June 30, 2012, amounted to approximately $62.6 million and the
sales value of copper nodules available to be shipped as at June
30, 2012, amounted to approximately $78.3 million. -- For Q2 2012,
the Company generated a net loss attributable to shareholders of
$0.9 million and for H1 2012, the Company generated a net income of
$16.7 million. -- Cash and cash equivalents as at June 30, 2012,
amounted to $38.1 million. Outlook -- The Company expects the first
copper cathode production through the new Solvent Extraction "SX"
plants and converted copper electro-winning facility during Q3
2012. Mechanical completion of the Updated Phase 4 Expansion is
expected in the third quarter of 2013. -- The Company expects to
commence exporting copper nodules during Q3 2012. -- The
feasibility study for the potential T17 underground mine is
expected to be completed during Q3 2012. This will potentially
allow for the exploitation of additional T17 mineral resources
below the bottom of the current open pit through underground mining
techniques. About Katanga Mining Limited Katanga Mining Limited
operates a major mine complex in the Democratic Republic of Congo
producing refined copper and cobalt. The Company has the potential
to become Africa's largest copper producer and the world's largest
cobalt producer. Katanga is listed on the Toronto Stock Exchange
under the symbol KAT. Forward Looking Statements This press release
may contain forward-looking statements, including, but not limited
to, the value of oxide concentrate available to be shipped but not
invoiced, the sales value of copper nodules available to be
shipped, the increase in copper and cobalt production levels, the
first copper cathode production through the new SX plants, the
mechanical completion of the Updated Phase IV expansion, the
commencement of the export of copper nodules, the anticipated
decrease in power disruption relating to the upgrade in power
infrastructure and the completion of the feasibility study for the
potential T17 underground mine. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or describes
a "goal", or variation of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, future events,
conditions, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, prediction, projection,
forecast, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
actual results of current exploration activities; actual results
and interpretation of current reclamation activities; conclusions
of economic evaluations; changes in project parameters as plans
continue to be refined; future prices of copper and cobalt;
possible variations in ore grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of exploration, development or construction activities, as well as
those factors disclosed in the Company's current annual information
form and other publicly filed documents. Although Katanga has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events, or otherwise, except in accordance with applicable
securities laws. Qualified Person Tim Henderson, Technical
Consultant, Katanga and a "qualified person" as such term is
defined in NI 43-101 has reviewed and approved the scientific and
technical disclosure in this press release. Katanga Mining
Limited CONTACT: Jeff BestCEOTel: +41 (041) 766 71 10Nico
ParaskevasCFOTel:+41 (041) 766 71 10
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