Anvil Mining Limited - Record Year for Production, Revenues, Net Income and Cash Flows



    TSX, ASX: AVM

    Common shares outstanding 71.1 million

    MONTREAL, Feb. 26 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil"
or the "Company") and including its subsidiaries is pleased to announce its
unaudited results for the year ended December 31, 2007. The Company recorded
consolidated net income of $117.2 million ($1.81 per share on a weighted
average number of shares basis) for the year ended December 31, 2007, compared
to $82.2 million ($1.65 per share) for 2006. Concentrate sales also reached a
yearly record of $263.2 million, compared to $175.4 million for 2006.
Operating cash flow before working capital movements was a record
$166.3 million ($2.57 per share), compared to $102.0 million ($1.80 per share)
in 2006. Consolidated copper and silver production was also a yearly record of
47,633 tonnes of copper and 2,451,269 ounces of silver contained in
concentrates. Audited results are expected to be released later today.

    
    2007 Highlights- Year ended December 31.

    -   Record annual production of 47,633 tonnes of copper and
        2,451,269 ounces of silver contained in concentrates.

    -   Record annual revenues from copper-silver and copper concentrate
        sales of $263.2 million, up 50% compared to 2006.

    -   Record annual net income of $117.2 million ($1.81 per share), up by
        43% compared to 2006.

    -   Record annual operating profit (after depreciation and amortization)
        of $160.3 million, up by 50% compared to 2006.

    -   Record annual cash flows from operating activities (before working
        capital movements) of $166.3 million ($2.57 per share) up by 63%
        compared to 2006.

    -   Underground ore production at Dikulushi commenced in the fourth
        quarter of 2007

    -   Commissioning of the Kinsevere Stage I Heavy Media Separation plant
        which reached design capacity of 500,000 tonnes of ore per year last
        July.

    -   Increase of 34% in Measured and Indicated Resources and a subsequent
        increase of 32% in Proven and Probable Mineral Reserves at Kinsevere.

    -   Cash and cash equivalents at year end of $279.9 million ($3.94 per
        share).

    Highlights for the fourth quarter ended December 31, 2007

    -   Record quarterly production of 16,878 tonnes of copper and
        717,402 ounces of silver contained in concentrates.

    -   Record quarterly revenues from copper-silver and copper concentrates
        sales of $79.3 million, an increase of 86%, compared to the
        corresponding quarter of 2006.

    -   Net income of $21.7 million ($0.31 per share), an increase of 2%,
        compared to the corresponding quarter of 2006.

    -   Operating profit (after depreciation and amortization) of
        $44.2 million, an increase of 71.3% compared to the corresponding
        quarter of 2006.

    -   Record quarterly cash flows from operating activities (before working
        capital movements) of $47.2 million ($0.67 per share), an increase of
        98% compared to the corresponding quarter of 2006.

    -   Completion of transition to underground mining at Dikulushi.

    -   Completion of Kinsevere Stage II updated feasibility study on
        60,000 tpa Solvent Extraction and Electrowinning ("SX-EW") expansion
        following significant increases in the Mineral Reserves and
        Resources.
    

    Bill Turner, President and Chief Executive Officer of Anvil, commented,
"The year 2007 was another exceptional year with annual records set in
production, sales of our copper and silver concentrates, operating profit, net
income and operating cash flows before working capital movements. Our net
income reached $117.2 million or $1.81 per share, the highest level in the
history of the Company. The increase in copper production is mainly due to the
commissioning of the Kinsevere Stage I in June, our third mine in the DRC. Our
strong financial performance was due to continued above-target operational
performance at the Dikulushi mine and increases in realized copper and silver
prices. Now with three mines in production, the Company expects to produce
more than 55,000 tonnes of copper and 1.3 million ounces of silver in 2008
with a mid-term objective to double this level of production in 2010, at which
time more than 55% of the copper production will be in the form of pure LME
Grade A copper cathodes."

    Progress on Kinsevere Stage I & II

    In early February 2008, the Company announced an updated feasibility
study for the Stage II 60,000 tonnes per annum capacity SX-EW expansion at
Kinsevere, following a 34% increase in Measured and Indicated Resources and a
subsequent 32% increase in Proven and Probable Mineral Reserves. As at
December 31, 2007, the total resource base is estimated at 1.8 million tonnes
of contained copper.
    Following the April 2007 study, several enhancements have been made to
the Stage II SX-EW processing flow-sheet to include "milling in raffinate" and
"direct tailings disposal" resulting in lower acid and lime consumption. While
their combined effects result in an increase in the SX-EW capital cost to
$298 million, overall processing costs are reduced by 4 cents per pound of
copper, which improves the internal rate of return of the project. The results
of the economic analysis are very robust with an internal rate of return of
nearly 40%, reflecting the quality of the Kinsevere deposits. A drilling
program of 25,000 metres is planned in 2008 to further define resources on the
lateral extensions of the oxide deposits and the depth in the sulphide zone. A
new NI-43-101 Technical Report is expected to be lodged on the SEDAR website
at www.sedar.com in the coming weeks.
    The new 27 km 120KV transmission line which connects the Kinsevere mine
to the DRC national hydroelectric grid is now completed and the two Electrical
Arc Furnaces ("EAF") are expected to commence commissioning late in the first
quarter of 2008. The EAFs will produce a "black copper" ingot grading
approximately 93% copper with the copper recovery through the EAFs expected to
be 92%. The 2008 production target for Kinsevere is established at
26,000 tonnes of copper, over 60% of which is expected to be in the form of
black copper ingots.

    Update regarding the DRC Government review of mining agreements

    In February 2008, Anvil received letters from the Minister of Mines for
the DRC notifying Anvil of the Government's position as a consequence of the
review by the DRC Government of the mining rights which Anvil's subsidiaries
hold in respect of Anvil's Dikulushi, Kinsevere and Kulu mining properties.
    The letters from the Minister include a statement of terms upon which the
Government proposes discussions be based to balance the partnership between
the DRC and Anvil. The office of the Minister of Mines has also advised Anvil
that the deadline for responding to the Government's position has been
extended to February 27, 2008.
    Anvil will submit a response to the letters received from the Minister of
Mines in respect of all three of its properties in the DRC within the
Government's timeframe and is seeking further discussions with the Minister of
Mines.

    The complete financial statements together with the related Management's
Discussion and Analysis of Financial Conditions and Results of Operations are
available on Anvil's website at www.anvilmining.com under the heading Investor
Relations/Financial Reports.

    Fourth Quarter and Year-End 2007 Financial Results Conference Call
    Reminder

    A conference call will be held at 4:00 p.m. (EST - North America, Toronto
time) on Thursday 28, 2008 coinciding with 6:00 a.m. (AWST - Australia, Perth
time) on Friday, February 29, 2008, to discuss the results announced in this
news release. Please note that the conference call was originally scheduled
for February 26 at 9:00 a.m. and the Company has changed the date and time.
Details to access the conference call and the live audio webcast with new
calling numbers are as follows:

    
    Conference call:

    (Please call approximately five minutes prior to the scheduled start of
the call)
    -   Toll-free within North America: 1-800-590-1508
    -   For local and overseas calling: 1-416-644-3426

    Live audio webcast of the conference call (listen mode only):

    -   CNW Group website at:   
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2137300

    Replay Information (available for a period of 7 days):

    -   The conference call will be recorded and a playback of the call will
        be available after the event by dialling 1-877-289-8525 or
        1-416-640-1917, Reservation number 21259499 followed by the number
        sign.
    

    Anvil Mining Limited is an unhedged copper and silver producer whose
shares are listed for trading on the Toronto Stock Exchange (as common shares)
and the Australian Stock Exchange (as CDIs) under the symbol AVM. It has
majority interests in and operates the Dikulushi copper-silver mine, the
Kinsevere copper mine, and the Kulu copper tailings operation in the Katanga
Province of the Democratic Republic of Congo.

    Caution Regarding Forward Looking Statements: The forward-looking
statements made in this news release are based on management's assumptions and
judgments regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the Company's
plans for expansions of the Kinsevere copper mine and estimated future
production at the Dikulushi, Kulu and Kinsevere mines, involve known and
unknown risks, uncertainties and other factors which may cause the Company's
actual results, performance or achievements to be materially different from
any anticipated future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among
others, the actual market prices of copper, changes in project parameters as
plans continue to be evaluated, and the possibility of cost overruns, as well
as those factors disclosed in the Company's filed documents. There can be no
assurance that the Stage II expansion of the Kinsevere copper mine will
proceed as planned or be successfully completed within expected time limits
and budgets or that, when completed, the expanded facility will operate as
anticipated.
    As a consequence of the letters Anvil has received from the DRC Minister
of Mines, Anvil may be required to enter into discussions or negotiations with
the DRC Government and Gecamines regarding its rights with respect to its
properties in the DRC. No assurance can be given as to the outcome of any such
discussions or negotiations or that Anvil's security of tenure and its ability
to secure additional financing in the future may not be adversely affected so
as to have a material adverse effect on its business, operating results and
financial position.

    
                                   Appendix

                Key Financial and Production Data (unaudited)

    -------------------------------------------------------------------------
                                     Fourth Quarter             Full year
                                   ended December 31       ended December 31
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Revenues: ($ millions)
    Copper-silver and copper
     concentrate sales              79.3        42.7       263.2       175.4
    -------------------------------------------------------------------------
    Operating profit:
     ($ millions)                   44.2        25.8       160.3       107.0

    Net Income : ($ millions)       21.7        21.3       117.2        82.2
    -------------------------------------------------------------------------
    Realized price: ($)
     Dikulushi mine
    -------------------------------------------------------------------------
    Copper per pound                2.98        2.21        3.14        2.59
    -------------------------------------------------------------------------
    Silver per ounce               15.08       12.32       13.54       11.20
    -------------------------------------------------------------------------
    Realized price: ($)
     Kulu mine:
    -------------------------------------------------------------------------
    Copper concentrate per
     tonne (ex mine gate)            692       1,081         753         756
    -------------------------------------------------------------------------
    Realized price: ($)
     Kinsevere mine:
    -------------------------------------------------------------------------
    Copper concentrate per
     tonne (ex mine gate)            919           -         956           -
    -------------------------------------------------------------------------

    PRODUCTION STATISTICS:

    Dikulushi mine
    Ore processed (tonnes)(1)     92,121      92,755     353,437     470,402
    Copper grade (%)                8.14        6.92         7.7        5.41
    Contained Copper in Ore
     (tonnes)                      7,507       6,417      27,045      25,456
    Recovery (%)                    92.5        89.9        90.8        88.8
    Copper produced in
     concentrates (tonnes)         6,943       5,774      24,561      22,618
    Silver produced in
     concentrates (ounces)       717,402     569,655   2,451,269   2,174,448
    Ore mined (tonnes)            10,530      41,300      24,925     607,132
    Waste mined (bcm)             18,744      33,597      59,429   1,261,963
    -------------------------------------------------------------------------
    Costs of production: ($)
    Operating cash costs per
     pound (after silver
     credits)
    (ex mine gate)                  0.14        0.14        0.14        0.28


    Total cash costs (after
     silver credits)(2)             0.58        1.01        0.57        1.02
    -------------------------------------------------------------------------



                                     Fourth Quarter             Full year
                                   ended December 31       ended December 31
                                    2007        2006        2007        2006

    PRODUCTION STATISTICS:

    Kulu mine Ore processed
     (tonnes)(3)                  98,054      92,509     340,628     307,589
    Copper grade (%)                5.03        7.61         5.2        8.07
    Contained copper in ore
     (tonnes)                      4,918       7,038      17,650      24,833
    Recovery (%)                    72.2        62.6        57.0       66.66
    -------------------------------------------------------------------------
    Copper produced in
     concentrates (tonnes)         3,551       4,749      10,066      19,956
    Ore mined (tonnes)
    -------------------------------------------------------------------------
    Costs of production: ($)

    Operating cash costs per
     tonne (ex mine gate)            669         285         581         237
    Kinsevere mine(3)
    Ore processed (tonnes)(4)     92,155                 173,161
    Copper grade (%)                10.3                    10.5
    Contained copper in ore
     (tonnes)                      9,448                  18,154
    Recovery (%)                    67.6                    71.6
    Copper produced in
     concentrates (tonnes)         6,384                  13,006
    Ore mined (tonnes)

    Costs of production: ($)

    Operating cash costs per
     tonne (ex mine gate)            262                     312
    -------------------------------------------------------------------------

        1. No mining costs were incurred at Dikulushi because all feed to the
           plant is sourced from the Run-of-Mine stockpiles of blended high-
           grade and low-grade ore during the transition to underground
           mining which commenced during the fourth quarter of 2007.
        2. Ore processed at Dikulushi relates to ore processed through the
           ball mill and flotation plant.
        3. The Kinsevere mine commenced production in June 2007.
        4. Ore processed at Kulu and Kinsevere relates to ore processed
           through the HMS plant.



                   Consolidated Balance Sheets (unaudited)

                                                     December 31 December 31
                                                            2007        2006
                                               Notes           $           $

    ASSETS
    Current assets
    Cash and cash equivalents                            215,754      59,302
    Restricted cash                                5         322         219
    Accounts receivable                            6      65,761      29,594
    Inventories                                    7      32,221      18,020
    Investments                                    8      63,800      95,819
    Prepaid expenses and deposits                         21,449       6,936
                                                     ------------------------
                                                         399,307     209,890
    Equity accounted investment                    9       5,766           -
    Long term receivable                                   3,966           -
    Deferred financing fees                       10           -         791
    Deferred mining costs                         11           -           -
    Exploration and acquisition expenditure       12      49,680     127,138
    Property, plant and equipment                 13     228,052      63,930
    Future income tax asset                        4       1,884         737
                                                     ------------------------
                                                         688,655     402,486
                                                     ------------------------
                                                     ------------------------

    LIABILITIES
    Current liabilities
    Accounts payable and accrued liabilities      14      25,044      14,285
    Income taxes payable                                   5,116       3,281
    Other liabilities                                      1,296         676
    Current portion of long term debt             15           -       8,000
    Purchase consideration payable                16           -      46,250
                                                     ------------------------
                                                          31,456      72,492

    Long-term debt                                15           -       4,000
    Future income tax liability                    4      39,587      36,505
    Asset retirement obligations                  17      11,668       1,402
                                                     ------------------------
                                                          82,711     114,399
    Non-controlling interest                      18      13,880       8,291
                                                     ------------------------
                                                          96,591     122,690
    Shareholders' equity
    Equity accounts                                      382,108     186,523
    Retained earnings                                    209,524      92,714
    Accumulated other comprehensive income                   432         559
                                                     ------------------------
    Total shareholders' equity                           592,064     279,796
                                                     ------------------------
                                                         688,655     402,486
                                                     ------------------------
                                                     ------------------------
    Commitments                                   20
    Subsequent events                             21



    Consolidated Statements of Income and Comprehensive Income (unaudited)

                                    3 Months Ended             Year ended
                                      December 31             December 31
                                    2007        2006        2007        2006
                                       $           $           $           $

    Concentrate sales             79,302      42,715     263,234     175,443
    Operating expenses           (26,410)    (15,002)    (85,785)    (60,845)
    Amortization                  (8,634)     (1,869)    (17,163)     (7,561)
                                ---------------------------------------------
    Operating profit              44,258      25,844     160,286     107,037

    Other income                   4,408       2,163      11,852       5,974

    General, administrative
     and marketing                (5,876)     (4,017)    (14,841)    (10,134)
    Exploration expenditure
     written off                  (3,326)        (42)     (4,389)        (42)
    Foreign exchange gains/
     (losses)                        (45)        (28)         95        (370)
    Provision for impairment
     of investments               (8,600)          -      (9,367)          -
    Stock based compensation        (661)       (399)     (2,484)     (1,367)
    Interest and financing fees   (1,097)       (373)     (2,242)     (4,505)
                                ---------------------------------------------
    Earnings before income
    tax and non-controlling
    interest                      29,061      23,148     138,910      96,593

    Income tax                    (4,773)       (226)     (8,537)     (3,830)
    Non-controlling interest      (2,628)     (1,652)    (13,209)    (10,586)
                                ---------------------------------------------
    Net Income                    21,660      21,270     117,164      82,177
                                ---------------------------------------------
                                ---------------------------------------------
    Other comprehensive income,
     net of taxes:

    Net unrealized gains/
     (losses) on available-
     for-sale securities             230           -        (254)          -
                                ---------------------------------------------

    Total comprehensive income    21,890      21,270     116,910      82,177
                                ---------------------------------------------
                                ---------------------------------------------

    Basic earnings per share        0.31        0.38        1.81        1.65
    Diluted earnings per share      0.30        0.37        1.77        1.61



                       Cash Flow Statement (unaudited)

                                    3 Months Ended             Year ended
                                      December 31             December 31
                                    2007        2006        2007        2006
                                       $           $           $           $

    Cash flows from operating
     activities
    Net income for the period     21,660      21,270     117,164      82,177
    Items not affecting cash
      Amortization                 8,634       1,869      17,163       7,561
      Provision for impairment
       of investments              8,600           -       9,367           -
      Exploration expenditure
       written off                 3,326          42       4,389          42
      Non-controlling interest     2,628       1,652      13,209      10,586
      Borrowing costs - amortized    201         124         715       1,770
      Unrealized foreign exchange
       gains                        (531)     (2,053)       (169)     (2,048)
      Future tax                   1,987         549       1,935         549
      Stock based compensation       661         399       2,484       1,367
    Changes in non-cash working
     capital                      (9,230)     19,344     (42,932)    (21,637)
                                ---------------------------------------------
                                  37,936      43,196     123,325      80,367
                                ---------------------------------------------
    Cash flows from investing
     activities
    Payments for property, plant
     and equipment               (27,767)    (18,796)    (91,961)    (39,276)
    Proceeds from sale of assets       -         (13)         11          84
    Payment for acquisition of
     initial interest in Mutoshi
     Project                           -      (6,491)          -      (6,491)
    Payments for exploration and
     evaluation expenditure       (5,223)         74     (20,377)     (4,412)
    Payment for acquisition of
     additional interest in AMCK
     Mining s.p.r.l.                   -           -     (36,000)    (10,000)
    Payment for investment in
     Sub-Sahara                        -           -      (6,090)          -
    Payment for acquisition of
     additional interest in
     Emiko s.p.r.l.                    -      (9,873)          -      (9,873)
    Payments for deferred
     acquisitions costs                        4,078
    Payments for investments           -      (5,000)          -    (132,288)
    Proceeds of principal
     repayments from investments   1,467       7,595      22,996      36,469
                                ---------------------------------------------
                                 (31,523)    (28,426)   (131,421)   (165,787)
                                ---------------------------------------------
    Cash flows from financing
     activities
    Proceeds from issue of shares
     (net of issue expenses)       3,995          73     183,666     139,398
    Proceeds from borrowings
     (net of fees incurred)            -           -           -      14,250
    Payment for borrowing              -           -        (115)          -
    Movement in restricted cash     (232)          -        (103)          -
    Repayment of borrowings       (6,000)     (1,994)    (12,000)    (13,646)
    Disbursements on behalf of
     Dikulushi trusts             (3,847)     (1,207)     (7,620)     (3,224)
                                ---------------------------------------------
                                  (6,084)     (3,128)    163,828     136,778
                                ---------------------------------------------
    Net increase/ (decrease) in
     cash and cash equivalents       329      11,642     155,732      51,358
    Cash and cash equivalents at
     beginning of the period           -           -      59,302       7,945
    Effects of exchange rate
     changes on cash held in
     foreign currencies              220           -         720          (1)
                                ---------------------------------------------
    Cash and cash equivalents at
     end of the period               549      11,642     215,754      59,302
                                ---------------------------------------------
    

    %SEDAR: 00020549E




For further information:

For further information: Craig Munro, Senior Vice President Corporate &
CFO, Tel: +61 (8) 9481 4700, Email: craigm@anvilmining.com (Perth); Robert La
Valliere, Vice President Investor Relations, Tel: (Office) (514) 448-6664,
(Cell) (514) 944-9036, Email: robertl@anvilmining.com (Montréal); Website:
www.anvilmining.com

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