BAAR, Switzerland, Feb. 11 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its financial results for the 2010 fourth quarter and
fiscal year end. Katanga's Financial Statements and Management's
Discussion and Analysis will be filed on SEDAR, www.sedar.com.
Highlights for the fourth quarter ended December 31, 2010
For the fourth quarter of 2010, the Company had a net income of US$214.3
million. This amount includes a non-cash future income tax recovery of
Total sales for the fourth quarter of 2010, were US$150.7 million,
comprised of US$111.7 million (12,036 tonnes) for copper cathode,
US$26.4 million (842 tonnes) for cobalt metal and US$12.6 million
(2,124 tonnes of contained copper) for copper concentrate.
Production data for the fourth quarter:
372,093 tonnes of ore were mined at KTO Underground, a 13% increase on
the third quarter of 2010, at an average copper grade of 3.65%.
518,531 tonnes of ore were mined at KOV Open Pit at an average copper
grade of 5.29%.
Kamoto Concentrator produced 87,046 tonnes of concentrate which was an
11% increase on the third quarter of 2010.
Copper cathode production was 14,345 tonnes which was a 12% increase on
the third quarter of 2010.
Cobalt production was 809 tonnes.
Concentrate production for sale as a finished product was 19,252 tonnes
(3,859 tonnes of contained copper).
Highlights for the year ended December 31, 2010
For 2010, the Company earned a net income of $265.0 million.
Total sales for the year ended December 31, 2010, were $535.9 million,
comprising $381.0 million (52,048 tonnes) for copper cathode, $126.7
million (3,445 tonnes) for cobalt metal and $28.2 million (4,724 tonnes
of contained copper) for copper concentrate.
C1 cash cost* for the year was $1.69 per pound of copper (C1 cash costs
per pound of copper are cash costs including mining, processing,
administration and refining, net of cobalt).
Production data for the year:
1,309,735 tonnes of ore were mined at KTO Underground at an average
copper grade of 3.82%.
1,944,742 tonnes of ore were mined at T17 Open Pit at an average copper
grade of 2.35%.
722,324 tonnes of ore were mined at KOV Open Pit at an average copper
grade of 4.43%.
Kamoto Concentrator produced 303,073 tonnes of concentrate.
Copper production was 58,238 tonnes (including 6,054 tonnes of contained
metal in concentrate).
Cobalt production was 3,437 tonnes.
The works associated with the Accelerated Development Plan continued:
KOV Open Pit started commercial production in July 2010 and is now
Following the commissioning of the CM6 mill the KTC Concentrator now has
an annual milling capacity of 5.6 million tonnes of ore.
Luilu Refinery capacity was increased from 70,000 to 110,000 copper
tonnes per annum.
The refurbishment works associated with the Accelerated Development
Plan, as detailed in the Company's latest Technical Report, will be
fully implemented in the second quarter of 2011 increasing production
capacity to 150,000 tonnes per annum of copper and 8,000 tonnes of
cobalt per annum.
The initial work on the scoping and engineering study was completed as
planned. The scoping study reviewed options for a more efficient
expansion of the project to 310,000 tonnes per annum copper production
and 8,000 tonnes per annum cobalt metal production, with an additional
22,000 tonnes per annum contained cobalt in cobalt hydroxide, by 2015.
The Company is currently completing a front end engineering and early
works project to further define technical and financial detail
associated with this expansion. The front end engineering and early
works project will be completed in the second quarter of 2011.
To utilize additional capacity at the Kamoto Concentrator, the Company
expects to increase the production of oxide concentrate for sale as a
finished product and is currently constructing a 120,000 tonnes per
annum copper concentrate filtration and bagging facility.
Exploration drilling at T17 Open Pit confirmed the continuation of the
T17 resource at depth with mineralization extending down dip to a depth
of 180 meters below the current pit design floor. Further evaluation of
the drilling data will be completed in 2011 to continue to develop the
conceptual underground mine plan to a level of detail which will
potentially allow for this resource to be converted to reserves.
Results will be discussed this morning during an analyst and investor
conference call with John Ross, CEO and Executive Director, and
Nicholas Brodie, Chief Financial Officer, at 8:30 a.m. EST. A question
and answer session will follow management's presentation.
Participants may join the call by dialling toll free 1-888-231-8191 or
647-427-7450 for calls from outside Canada and the US. A recorded
playback of the call can be accessed after the event until Thursday,
February 17, 2011 by dialling 1-800-642-1687 or 416-849-0833 for calls
outside Canada and the US. Pass-code: 36491631. A live and archived
audio webcast will also be available at www.katangamining.com.
About Katanga Mining Limited
Katanga Mining Limited operates a major mine complex in the Democratic
Republic of Congo producing refined copper and cobalt. The Company has
the potential to become Africa's largest copper producer and the
world's largest cobalt producer. Katanga is listed on the Toronto Stock
Exchange under the symbol KAT.
The Company has included a non-GAAP performance measure, C1 cash costs,
net of by-product credits, per pound of copper. The Company reports C1
cash costs on a production basis. In the copper mining industry, this
is a common performance measure but does not have any standardized
meaning. The Company believes that, in addition to conventional
measures prepared in accordance with GAAP, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. C1 cash costs inclusive of by-product credits are calculated by
deducting by-product cobalt sales revenues from operating cash costs.
This press release contains "forward-looking information" within the
meaning of Canadian securities legislation under the heading "Outlook"
with respect to the Company's business, operations and financial
performance and condition, including the Company's refurbishment works
associated with the Accelerated Development Program, anticipated future
capacities, project expansion opportunities and exploration,
development and production. Generally, forward-looking information can
be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled estimates", "forecasts", "outlook", "intends",
"anticipates", "does not anticipate", or "believes", or variations of
such words and phrases or statements that certain actions, events or
results "may", "could", "would", "might", "will" or "will be taken",
"occur", or "be achieved". Statements containing forward-looking
information are based on the opinions and estimates of management as of
the date such statements are made, and they are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Katanga to be materially different from those expressed or implied by
such statements, including but not limited to: risks relating to the
refurbishment of existing facilities; unexpected events during
construction, start-up, expansion or production; variations in ore
grade or tonnes mined; future prices of copper and cobalt; futures
prices of oxide concentrate; possible variations in ore reserves, grade
or recovery rates; failure of plant, equipment or processes to operate
as anticipated; political unrest and insurrection; acts of terrorism;
accidents, labor disputes and other risks of the mining industry;
delays in the completion of development or construction activities, as
well as those factors discussed herein or referred to in the current
annual information form of the Company filed with the securities
regulatory authorities in Canada and available at www.sedar.com. Although management of Katanga has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that statements containing forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
statements containing forward-looking information. Katanga does not
undertake to update any forward-looking information or statement that
is incorporated herein, except in accordance with applicable securities
SOURCE Katanga Mining Limited
For further information:
|John Ross |
Tel: +41 (041) 766 71 10
| || || || || ||Nick Brodie|
Tel:+41 (041) 766 71 12