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Record monthly copper production at Phu Kham
Financing update
Production record
PanAust Limited is pleased to announce that in July the Company�fs Phu Kham Copper�]Gold
Operation in Laos will produce approximately 5,000t of copper in concentrate, a record for
the Operation.
The record production resulted largely from an increased copper recovery rate following the
successful implementation of a number of recovery improvement initiatives. Process plant
throughput for July was at an annualised rate of over 12Mt with an average copper recovery
rate of approximately 62% compared to 56% in the June quarter. PanAust anticipates that
recoveries will continue to improve as the Operation implements further measures to
improve recovery from processing the complex transitional mineralisation and as the
proportion of primary mineralisation increases. The target recovery rates for the remainder
of 2009 are expected to range between 65% and 70%.
Production at Phu Kham for 2009 is expected to be approximately 60,000t (�}5%) of copper,
50,000oz to 60,000oz of gold1 and 300,000oz to 400,000oz of silver. Cash costs in 2009 are
expected to average approximately US$0.85/lb of copper after precious metal credits2 which
positions Phu Kham as a competitive copper producer in global terms.
Finance update
The Company has advised the Agent, acting for the syndicate of banks to the finance
facilities, that the requisite number of banks have voted to accept the Company�fs proposal
to deem satisfaction of the completion test and amend the commercial terms of the
facilities.
As part of the agreement with the banks, PanAust has agreed to an increase in interest
margins and to reduce Project debt by US$100 million upon receipt of the investment funds
from the placement agreement the Company has entered into with Guangdong Rising Assets
Management (GRAM).