Anvil Mining Reports for the Second Quarter Net Income of $8.5 Million or $0.12 per share and Operating Profit of $16.0 Million



    TSX, ASX: AVM
    Common shares outstanding 71.2million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, Aug. 12 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM),
("Anvil" or the "Company"), today announced net income for the second quarter
ended June 30, 2008 of $8.5 million ($0.12 per share on a weighted average
number of shares basis), compared to $35.4 million ($0.58 per share) for the
second quarter of 2007. Concentrate sales for the second quarter of 2008
totalled $59.8 million, down 9% from the second quarter of 2007. Operating
cash flow, before working capital movements, was $24.6 million ($0.35 per
share).

    
    Second Quarter Highlights

    - Quarterly production of 10,521 tonnes of copper and 248,816 ounces of
      silver contained in concentrates;

    - Revenues from copper-silver and copper concentrate sales of
      $59.8 million, down 9% compared to the second quarter of 2007;

    - Net income of $8.5 million ($0.12 per share), down 76% compared to the
      second quarter of 2007;

    - Cash flow from operating activities, before working capital movements,
      of $24.6 million ($0.35 per share), down 43% compared to the second
      quarter of 2007; and

    - Commencement of commissioning of one of the two Electric-Arc Furnaces
      ("EAF") at Kinsevere.

    Bill Turner, President and Chief Executive Officer of Anvil, commented,
"Operational issues at our Dikulushi and Mutoshi mines have adversely impacted
second quarter financial performance. At Dikulushi, modifications to the
underground development to change the mining method to an Avoca cut-and-fill
method are now well underway with Perth based mining contractor, Byrnecut now
established on site. This development work will continue for the remainder of
2008 with full-scale underground mining expected to commence in January 2009.
Although there is additional capital cost involved in modifying the mining
method, ore recovery rates are expected to improve compared with the previous
sub-level caving method."
    "The continuing poor performance of the Mutoshi Stage I HMS operation
because of falling recoveries with the unsuitable HMS plant, together with
high mining costs have led to the decision to suspend mining activities at
Mutoshi, pending the outcome of an alternative mining study due for completion
during the fourth quarter. This decision is not expected to impact 2008
forecast production as there is sufficient stockpiled ore to feed the HMS
processing plant through to the end of the year and achieve 9,000 tonnes of
copper production for 2008."
    Bill Turner continued, "The construction and development of the Kinsevere
Stage II 60,000 tonnes per year SX-EW plant is progressing well and in order
to be in position to deliver the first copper cathodes towards the end of
2009, this project continues to be the focus of our current efforts. The
operational changes and the increased confidence in the construction of
Kinsevere Stage II are the result of the recent senior nominations of Dr. Toby
Bradbury, Vice President Operations, DRC and Paul Chare, Project Director
Kinsevere Stage II SX-EW, both of whom now reside in Lubumbashi, the capital
city of the Katanga Province, DRC. In addition, Paul Chare has also become the
General Manager for the entire Kinsevere operation in preparation for the
start up of the SX-EW in 2009. Also at Kinsevere, an aggressive drilling
program is underway, targeting the sulphide resource down to a depth of
250 metres in the first instance."

    Operations

    Forecast production for 2008 remains unchanged at 47,000 tonnes of copper
and 950,000 ounces of silver. Individual mine site production numbers are as
follows: Dikulushi, 11,000 tonnes of copper and 950,000 ounces of silver,
Mutoshi, 9,000 tonnes of copper and Kinsevere 27,000 tonnes of copper.

    Dikulushi

    During the second quarter of 2008, the Company determined that the
extraction of ore from the underground stopes and the rate of underground
development at the Dikulushi Mine was not proceeding as well as was initially
expected. As a result, in its first quarter disclosures, the Company reduced
its forecast production at Dikulushi to approximately 11,000 tonnes of copper
and 950,000 ounces of silver and remains on track to achieve these production
levels. The Company has carried out a detailed analysis of the situation and
determined that the underground mining method should be modified from a
Sub-level Caving method to an Avoca cut and fill method. While Avoca methods
require additional underground development over and above Sub-level Caving
techniques, its adoption is expected to result in superior metal recovery.
Feed to the plant continues to be sourced primarily from stockpiled low-grade
ore, supplemented with ore from the underground mine.

    Mutoshi

    Owing to the progressively lower metallurgical recovery from processing
finer grained, lower grade material that is being encountered as mining
progresses further downstream, the Company decided in August to suspend mining
operations, pending the outcome of an investigation of alternative mining
methods and ongoing study of the establishment of an SX-EW facility, both of
which are expected to be completed by the end of 2008. The processing plant
will continue to operate with existing stockpiled ore sufficient to provide
feed for the remainder of 2008 and to achieve forecast 2008 production of
9,000 tonnes of copper. The suspension of mining operations is expected to
result in a reduction in operating costs of $3 million over the second half of
the year.

    Kinsevere

    Mining operations continued as expected during the second quarter. During
July, the HMS plant had a spirals plant added in order to capture copper metal
losses from the combined Crusher and HMS deslime tailings streams. The spirals
plant is producing approximately 40 dry metric tonnes of concentrate per day,
grading 25% copper; with plant recovery ranging from 50-60%.
    Commencement of commissioning of the Kinsevere EAFs has been delayed to
the first week of August 2008, due to a combination of design, logistical, and
technical factors. The second EAF is expected to commence commissioning in the
fourth quarter of 2008.

    Kinsevere Stage II

    The development of the Kinsevere Stage II project is progressing and
remains on track for construction to be completed on budget towards the end of
2009. The end of the wet season in April has enabled construction activity to
increase significantly, with shipments of construction materials to site
steady during the second quarter and expected to build up in the coming
months.

    The complete unaudited financial statements together with the related
Management's Discussion and Analysis (MD&A) are available on Anvil's website
at www.anvilmining.com under the heading "Financial Reports".

    Reminder - Second Quarter Financial Results Conference Call

    A conference call will be held at 9:30 a.m. (EDT-North American time) on
Tuesday, August 12, 2008, coinciding with 9:30 p.m. (AWST-Australia, Perth
time) on the same day to discuss the results announced in this News Release.
Details to access the conference call and the live audio webcast are as
follows:

    Conference call:

    (Please call approximately five minutes prior to the scheduled start of
the call)

    - Toll-free within North America: 1-800-732-0232
    - For local and overseas calling: 1-416-644-3419

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

    - CNW Group website at:
    http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2302300

    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 21273480 followed by the pound # key.

    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 Mutoshi Stage I 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, Mutoshi 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 received in February 2008 from the
DRC Minister of Mines, Anvil may be required to enter into discussions or
negotiations with the DRC Government and Gécamines 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

    -------------------------------------------------------------------------
                                     3 months ended          6 months ended
                                        June 30                  June 30

                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
    Revenues: ($ millions)          59.8        65.7       135.1       107.7
    -------------------------------------------------------------------------
    Operating profit: ($ millions)  16.0        42.6        49.7        69.3
    Net Income: ($ millions)         8.5        35.4        30.0        56.4
    -------------------------------------------------------------------------
    Realized price: ($)
    Copper per pound                3.56        3.33        3.57        3.12
    Silver per ounce               14.36       12.12       17.73       12.55
    -------------------------------------------------------------------------

    PRODUCTION STATISTICS:

    Consolidated Group
    Copper produced in
     concentrates (tonnes)        10,521       7,942      22,548      15,983
    Silver produced in
     concentrates (ounces)       248,816     583,269     731,472   1,121,127

    Per Mine

    Dikulushi mine

    Ore processed (tonnes)(1)    110,990      85,480     210,523     172,742
    Copper grade (%)                 3.1         7.7         4.2         7.3
    Contained Copper in
     Ore (tonnes)                  3,399       6,564       8,903      12,702
    Recovery (%)                    76.7        90.7        84.2        89.9
    Copper produced in
     concentrates (tonnes)         2,607       5,951       7,491      11,420
    Silver produced in
     concentrates (ounces)       248,816     583,269     731,472   1,121,127
    Ore mined (tonnes)            33,159       4,980      63,470       9,283
    Operating cash cost
     (ex-mine gate)
     (after silver credits)($/lb)   0.73        0.06        0.39        0.01
    -------------------------------------------------------------------------
    Total cash costs
     from operations                1.24        0.49        0.89        0.45
    -------------------------------------------------------------------------

    Kinsevere mine

    Ore processed (tonnes)(2)     94,403       8,367     186,394       8,367
    Copper grade (%)                10.0         9.0         9.6         9.0
    Contained copper in ore
     (tonnes)                      9,424         754      17,823         754
    Recovery (%)                    68.3        63.7        63.3        63.7
    Copper produced in
     concentrates (tonnes)         6,433         480      11,288         480
    Ore mined (tonnes)           578,350     151,355   1,520,731     151,355
    -------------------------------------------------------------------------
    Costs of production ($)
    Operating cash costs per
     tonne (ex mine gate)            278           -         321           -
    -------------------------------------------------------------------------

    Mutoshi mine

    Ore processed (tonnes)(3)    130,693      74,987     237,427     155,232
    Copper grade (%)                 3.7         4.6         4.0         5.3
    Contained copper in ore
     (tonnes)                      4,872       3,446       9,545       8,293
    Recovery (%)                    30.4        44.5        39.5        49.2
    Copper produced in
     concentrates (tonnes)         1,481       1,511       3,768       4,083
    Ore mined (tonnes)           200,035     134,112     287,991     151,335
    -------------------------------------------------------------------------
    Costs of production: ($)
    Operating cash costs per
     tonne (ex mine gate)          1,164         694         871         494
    -------------------------------------------------------------------------
    1. Ore processed at Dikulushi relates to ore processed through the ball
       mill and flotation plant.
    2. The Kinsevere mine commenced production in June 2007.
    3. Ore processed at Mutoshi and Kinsevere relates to ore processed
       through the HMS plant.


                   Consolidated Balance Sheets (unaudited)

                                                      June 30    December 31
                                                         2008           2007
                                                            $              $
    ASSETS
    Current assets
    Cash and cash equivalents                         146,186        215,754
    Restricted cash                                     1,515            322
    Accounts receivable                                72,497         65,761
    Inventories                                        47,921         32,221
    Investments                                        56,793         63,800
    Prepaid expenses and deposits                      44,282         21,449
                                                  ---------------------------
                                                      369,194        399,307

    Equity accounted investment                         5,430          5,766
    Long-term receivable                                8,528          3,966
    Exploration and acquisition expenditure            64,730         49,680
    Property, plant and equipment                     272,559        228,052
    Future income tax asset                             3,773          1,884
                                                  ---------------------------
                                                      724,214        688,655
                                                  ---------------------------
                                                  ---------------------------

    LIABILITIES
    Current liabilities
    Accounts payable and accrued liabilities           21,687         25,044
    Income taxes payable                                6,998          5,116
    Other liabilities                                   1,606          1,296
    Current portion of long-term debt                     287              -
                                                  ---------------------------
                                                       30,578         31,456

    Future income tax liability                        44,539         39,587
    Long-term debt                                        475              -
    Asset retirement obligations                       12,523         11,668
                                                  ---------------------------
                                                       88,115         82,711
    Non-controlling interest                           12,220         13,880
                                                  ---------------------------
                                                      100,335         96,591
                                                  ---------------------------
    Shareholders' equity
    Equity accounts                                   383,626        382,108
    Retained earnings                                 239,479        209,524
    Accumulated other comprehensive income                774            432
                                                  ---------------------------
    Total shareholders' equity                        623,879        592,064
                                                  ---------------------------
                                                      724,214        688,655
                                                  ---------------------------
                                                  ---------------------------


                    Consolidated Statements of Income and
                       Comprehensive Income (unaudited)


                                     3 months ended          6 months ended
                                        June 30                  June 30

                                    2008        2007        2008        2007
                                       $           $           $           $

    Concentrate sales             59,789      65,696     135,056     107,732
    Operating expenses           (27,928)    (20,875)    (61,986)    (34,412)
    Amortization                 (15,897)     (2,212)    (23,390)     (4,032)
                               ----------------------------------------------
                                  15,964      42,609      49,680      69,288
    Other income                   2,428       2,195       5,247       3,346
    Share of loss in associates        -           -        (336)          -

    General, administrative
     and marketing                (7,021)     (3,049)    (12,413)     (5,455)
    Exploration expenditure
     written off                       -      (1,063)          -      (1,063)
    Foreign exchange gains           334         (88)        382         (38)
    Stock based compensation        (433)       (645)     (1,000)     (1,204)
    Interest and financing fees      748        (418)       (857)       (819)
                               ----------------------------------------------
    Earnings before income tax
     and non-controlling
     interest                     12,020      39,541      40,703      64,055

    Income tax                    (3,712)       (237)     (9,309)     (1,048)
    Non-controlling interest         208      (3,942)     (1,439)     (6,567)
                               ----------------------------------------------
    Net income                     8,516      35,362      29,955      56,440

    Other comprehensive income,
     net of taxes
    Net unrealized gains on
     available-for-sale
     securities                      200         784         342         713
                               ----------------------------------------------
    Total comprehensive income     8,716      36,146      30,297      57,153
                               ----------------------------------------------
                               ----------------------------------------------

    Basic earnings per share ($)    0.12        0.58        0.42        0.96
    Diluted earnings per share ($)  0.12        0.57        0.42        0.94



                       Cash Flow Statement (unaudited)

                                     3 months ended          6 months ended
                                        June 30                  June 30

                                    2008        2007        2008        2007
                                       $           $           $           $
    Cash flows from operating
     activities
    Net income for the period      8,516      35,362      29,955      56,440
    Items not affecting cash:
      - Amortization              15,897       2,212      23,390       4,032
      - Exploration expenditure
         written off                   -       1,063           -       1,063
      - Gain on derivative
         instruments                (960)          -           -           -
      - Share of loss in
         associates                    -           -         336           -
      - (Gain)/ Loss on sale
         of assets                   (31)          -         257           -
      - Non-controlling interest    (208)      3,942       1,439       6,567
      - Borrowing costs -
         amortized                     -         312           -         463
      - Unrealized foreign
         exchange
         gains/(losses)              467        (221)        550        (227)
      - Future tax                   530           -       3,063         (52)
      - Stock based compensation     433         645       1,000       1,204
    Changes in non-cash working
     capital                      (7,008)    (24,733)    (23,362)    (35,090)
                               ----------------------------------------------
                                  17,636      18,582      36,628      34,400
                               ----------------------------------------------
    Cash flows from investing
     activities
    Payments for property,
     plant and equipment         (55,956)     (8,094)    (95,198)    (30,175)
    Proceeds from sale of assets      61           -         240          13
    Payments for exploration
     and evaluation expenditure  (10,592)     (4,910)    (15,359)     (8,940)
    Payment for acquisition or
     additional interest in
     AMCK Mining s.p.r.l.              -           -           -     (36,000)

    Payments for investment in
     Sub-Sahara Resources NL           -      (3,972)          -      (3,972)

    Proceeds of principal
     repayments from investments   6,057       8,694       7,305      14,686
                               ----------------------------------------------
                                 (60,430)     (8,282)   (103,012)    (64,388)
                               ----------------------------------------------

    Cash flows from financing
     activities
    Proceeds from issue of
     shares (net of issue
     expenses)                       302     179,787         518     179,869
    Proceeds from borrowings
     (net of fees incurred)            -         (80)        800         (80)
    Movement in restricted cash   (1,291)       (177)     (1,193)       (177)
    Repayments of borrowings         (38)     (2,000)        (38)     (4,000)
    Disbursements on behalf
     of Dikulushi Trusts          (2,304)     (1,411)     (3,099)     (1,929)
                               ----------------------------------------------
                                  (3,331)    176,119      (3,012)    173,683
                               ----------------------------------------------
    Net decrease in cash and
     cash equivalents            (46,125)    186,419     (69,396)    143,695

    Cash and cash equivalents
     at beginning of the period  192,498      16,578     215,754      59,302
    Effects of exchange rate
     changes on cash held
     in foreign currencies          (187)          -        (172)          -
                               ----------------------------------------------
    Cash and cash equivalents
     at end of the period        146,186     202,997     146,186     202,997
                               ----------------------------------------------
    
    %SEDAR: 00020549E




For further information:

For further information: Craig Munro, Senior Vice President Corporate &
CFO, +61 (8) 9481 4700, craigm@anvilmining.com (Perth); Robert La Vallière,
Vice President Investor Relations, (Office) +1 (514) 448-6664, (Cell) +1 (514)
944-9036, robertl@anvilmining.com (Montréal); www.anvilmining.com

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