Anvil feels the pinch Claire Svircas Thursday, 13 August 2009 Source: Miningnews.net
ANVIL Mining has posted an $US11.3 million ($A13.4 million) loss for the second quarter of 2009 due to lower production and sales.
Copper concentrate from Anvil Mining's African operations.
The results reflect the $US18.8 million loss the African copper miner posted for the first quarter of 2009.
Net sales for the June quarter were $7.7 million, compared with $59.83 million for the June quarter last year.
Negative cash flows from operating activities were $6.4 million, down significantly from positive cash flow of $24.6 million last year.
The figures were blamed on the termination of mining at the Dikulushi and Mutoshi mines, lower realised copper prices and one-off charges of $6.1 million.
During the quarter the company reduced its interest in the Mutoshi joint venture from 80% to 70%.
Despite the results, chief executive officer Bill Turner said the company was “now in a better position to move forward”.
Copper production for the second quarter totalled 5372 tonnes.
The Kinsevere HMS plant, which restarted operations in late March, is on target to produce 8900t of copper during the third quarter.
To date, about 50% of the Stage 2 capital cost has already been incurred with $199 million of the budgeted $394 million invested.
The company has reached an agreement with metals trader Trafigura for a combined debt and equity financing arrangement for $200 million to offer a fully financed solution for the development of Kinsevere Stage 2.
This financing package will enable the commissioning of Kinsevere Stage 2 in late 2010 for commercial production in 2011.
Annual production from Kinsevere is expected to be 60,000t of copper cathode.
At June 30, Anvil had a cash balance of $48.7 million.
Shares in Anvil were marginally higher, up A1c to $3 at close of trade.
AVM Price at posting:
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