panaust posts profit

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PERTH (miningweekly.com) ? Australian gold- and copper-miner PanAust has swung back to profitability, reporting a net profit after tax of A$47,5-million for the six months to June, compared with a loss of A$15,8-million in the previous corresponding period.

Revenue from operations almost doubled to A$223,9-million during the first six months of the year, compared with the A$137,7-million reported in the corresponding period of 2009.

PanAust MD Gary Stafford attributed its strong financial performance to improved operating performances at the flagship Phu Kham copper/gold project, in Laos, which led to increased sales of copper/gold concentrate, along with the higher average metal prices.

?For each of the past three quarters, Phu Kham has produced over 16 000 t of copper and strong production performances are set to continue.?

Stafford noted that concentrate sales for the period under review totalled around 120 000 t, compared with the 107 000 t recorded in the first half of 2009, with the pay-metal content of 28 579 t of copper, 23 488 oz of gold and 192 240 oz of silver.

A further 4 953 oz of gold was contained in sales of gold dore from the now depleted Phu Kham heap-leach operation.

Stafford said that the market for copper concentrate would remain tight, as the company entered into sales agreements for most of its planned concentrate production to the end of 2012.

Group earnings before interest, tax, depreciation and amortisation for the 2010 financial year is expected to be between $220-million and $240-million, based on the expected 2010 production figures.

The Phu Kham operation was expected to deliver around 63 000 t of copper for the full year, as well as 50 000 oz of gold and a further 400 000 oz of silver.

Meanwhile, Stafford reported that the company was advancing a number of its projects, including the Ban Houayxai gold/silver project, in Laos, which was currently under construction. The project would be completed by early 2012.

The Phu Kham operation was also likely to see an increase in copper production as the ore processing rate was upgraded. This would coincide with a scheduled decline in ore grades.

PanAust would also look to submit a mine plan for its Puthep copper project, in Thailand, through the second half of 2010/11 financial year, and would apply for mining leases and complete the environmental and social impact studies.

The Puthep project could reach annual production rates of between 250 000 t and 30 000 t of cathode copper, over an eight year life-of-mine.

In Chile, PanAust was planning to acquire a controlling interest in the Inca De Oro copper/gold project, which could support a production of around 50 000 t/y of copper and 40 000 oz/y gold in concentrate, over a ten year life-of-mine.

Stafford said that the acquisition of this project would fit well with the company?s corporate strategy for growth and represented an ?excellent opportunity? to establish a business in one of the world?s most attractive copper-mining regions.

Through the Ban Houayxai, Phu Kham upgrade and the Inca de Oro acquisition, PanAust could double its metal production from 2010 levels, by 2014.