AVM 11.5% 2.9¢ advance metals limited

well on track

  1. KKR
    1,203 Posts.
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    Good evening folks.

    We have an answer regarding the statement that came out last week. For all of the professional "analysts" and "market commentators" (NOT Hot Copper posters)that predicted that Anvil would either take over Tiger Resources or that Trafigura would take over Anvil have got it completely wrong. We are on the market!


    Anvil Mining Reports Second Quarter 2011 Results =
    Construction of the Kinsevere Stage II SX-EWPlant Now Complete

    Montr�al, Canada: Anvil Mining Limited (TSX, ASX: AVM), (�Anvil� or the �Company�), today announced construction of the Kinsevere Stage II Solvent Extraction Electrowinning (�SX-EW�) plant is essentially complete, with commissioning and ramp-up progressing in accordance with the Company�s expectations. For the June quarter, start-up production of copper cathode totalled 3,376 tonnes.

    The revenue and costs related to the production of cathode during the testing and commissioning phase were capitalized against the construction costs of the SX-EW plant in accordance with accounting standards. The Company anticipates that commercial production will be declared in the third quarter of 2011, at which time revenue, costs and depreciation of the Stage II SX-EW plant will be recognized in the income statement.

    Importantly, provisional copper cathode assays received during the testing and commissioning phase, from a third party independent laboratory, confirm that the majority of
    cathode produced during the quarter conforms to LME Grade A chemical specifications.

    Group copper production for the June quarter amounted to 5,999 tonnes, comprised of 2,623 tonnes of copper in concentrate and 3,376 tonnes of copper cathode. For the six months ended June 30, 2011, Group copper production totalled 9,315 tonnes, comprised of 5,939 tonnes of
    copper in concentrate and 3,376 tonnes of copper cathode.
    The Kinsevere Stage I Heavy Media Separation (�HMS�) plant operated until June 24, 2011, at which time it was placed on care and maintenance, allowing resources to focus on the
    commissioning and ramp-up of the SX-EW plant.

    The Company generated revenues of $10.4 million from the sale of copper in concentrates and incurred an operating loss of $1.9 million for the June quarter due to lower volume and continued high mining costs in relation to the cutback program in the central pit at Kinsevere in order to prepare for Stage II processing and to provide waste material for the raising of the embankments at the Stage II tailings storage facility. The Company�s net loss after tax for the June quarter was $0.8 million, equivalent to loss per share of $0.01 (basic).

    Key operating highlights for the second quarter
     Net sales of copper in concentrate of $10.4 million compared to $14.5 million for the second quarter of 2010.

     Production of 2,623 tonnes of copper in concentrate, compared to 4,412 tonnes in the second quarter of 2010.
     Operating loss of $1.9 million, compared to $2.5 million for the second quarter of 2010.

     Net loss from continuing operations of $0.8 million (-$0.01 per share), compared to net profit of $15.1 million ($0.10 per share) for the second quarter of 2010.

     Average realized copper price of $4.09 per pound, compared to $2.95 per pound for the second quarter of 2010.

     Production of 3,376 tonnes of copper cathode.

     Copper cathode sales of 2,975 tonnes for revenue of $26.8 million.

     Commencement of drilling program at the Kinsevere sulphide deposit.

    Darryll Castle, President and CEO of Anvil, commented, �The construction of the Kinsevere Stage II 60,000 tonnes per year SX-EW plant is essentially complete. Our focus remains
    firmly on the commissioning and ramp-up of the Kinsevere Stage II SX-EW plant, which continues to progress well, with 2,023 and 3,173 tonnes of copper cathode for the months of June and July respectively, the majority of which has been independently assayed as LME Grade A quality.

    Given the current rate of progress with ramp-up and commissioning, it is anticipated that the 5,000 tonnes per month design capacity will be achieved during the fourth
    quarter of 2011. With the performance of the Stage II SX-EW plant, along with the commencement of sulphide drilling at Kinsevere and the regional exploration effort, the Company is well placed for organic growth.�

    Strategic Review Process

    Anvil has been informed by its largest shareholder, Trafigura Beheer B.V., that it considers its
    39% ownership interest (fully diluted) in Anvil to be non-core and is considering alternatives to maximize the value thereof. In light of Trafigura�s decision, the Board of Directors of Anvil has formed a Special Committee to review alternatives in order to maximize value for
    all shareholders. BMO Capital Markets has been retained by the Company to assist in this regard.
 
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