ZUG, SWITZERLAND, Nov. 14, 2013 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its financial results for the third quarter of 2013
and a management change. Katanga's Financial Statements and
Management's Discussion and Analysis will be filed on SEDAR, www.sedar.com.
Highlights during the three and nine months ended September 30, 2013,
As announced previously by Katanga:
During the three months ended September 30, 2013 ("Q3 2013"), the
Company mined 1,571,617 tonnes of ore (a 2% decrease over the three
months ended September 30, 2012 ("Q3 2012")) at a grade of 3.69%
resulting in contained copper in ore mined of 57,919 tonnes (a 16%
decrease over Q3 2012). During the nine months ended September 30,
2013 ("Q3 YTD 2013"), the Company mined a record 4,664,273 tonnes of
ore (a 13% increase over the nine months ended September 30, 2012 ("Q3
YTD 2012")) at a grade of 4.21% resulting in contained copper in ore
mined of 196,404 tonnes (an 18% increase over Q3 YTD 2012).
Ore mined at KOV Open Pit during Q3 2013 was 1,102,207 tonnes, a 1%
increase over Q3 2012. The average copper grade of ore mined from KOV
Open Pit during Q3 2013 was 3.83%, resulting in contained copper in ore
mined of 42,214 tonnes (a 16% decrease over Q3 2012). This decrease
was in line with management's expectation as part of its focus on waste
stripping during the quarter. Ore mined at KOV Open Pit during Q3 YTD
2013 was a record 3,360,466 tonnes, a 22% increase over Q3 YTD 2012.
The average copper grade of ore mined from KOV Open Pit during Q3 YTD
2013 was 4.54%, resulting in contained copper in ore mined of 152,430
tonnes (a 31% increase over Q3 YTD 2012).
Waste mined at KOV Open Pit during Q3 2013 was a record 10,646,705
tonnes, a 133% increase over Q3 2012. Waste mined at KOV Open Pit
during Q3 YTD 2013 was a record 22,228,863 tonnes, a 33% increase over
Q3 YTD 2012.
Ore mined and hoisted at KTO Underground Mine during Q3 2013 was 448,206
tonnes, an 11% decrease over Q3 2012. The average copper grade of ore
mined from KTO Underground Mine during Q3 2013 was 3.30%, resulting in
contained copper in ore mined of 14,801 tonnes (a 20% decrease over Q3
2012). Ore mined and hoisted at KTO Underground Mine during Q3 YTD
2013 was 1,282,602 tonnes, a 7% decrease over Q3 YTD 2012. The average
copper grade of ore mined from KTO Underground Mine during Q3 YTD 2013
was 3.36%, resulting in contained copper in ore mined of 43,070 tonnes
(a 14% decrease over Q3 YTD 2012). Lower mined volumes and grades are
a result of near-term chamber availability issues. Management expects
mined volumes and grades to improve by Q4 2013 due to the increased
backfill tonnes achieved in Q3 2013 and the acceleration of primary and
Dewatering of T17 Open Pit was completed during Q3 2013 and mining of
T17 Open Pit Cut 3 and 4 recommenced. 40,612 tonnes of waste and
21,204 tonnes of ore were mined. An average copper grade of 4.26% and
an average cobalt grade of 0.61% were achieved. This will facilitate
the start of infrastructure works related to the potential T17
As announced previously:
Ore milled at KTC during Q3 2013 was a record 1,478,387 tonnes, a 16%
increase over Q3 2012. Ore milled at KTC during Q3 YTD 2013 was a
record 4,107,823 tonnes, a 17% increase over Q3 YTD 2012.
Copper produced in concentrate and metal for Q3 2013 totalled 34,512
tonnes, a 33% increase over Q3 2012. Copper produced in concentrate
and metal for Q3 YTD 2013 totalled 94,786 tonnes, a 38% increase over
Q3 YTD 2012.
As a result of the continued commissioning of various elements of the
Updated Phase 4 Project and notwithstanding the residual power
availability issues, copper metal production for Q3 2013 totalled a
record 24,511 tonnes, a 51% increase over Q3 2012. Copper metal
production for Q3 YTD 2013 totalled a record of 59,064 tonnes, a 25%
increase over Q3 YTD 2012.
In Q3 2013, a record 172,862 tonnes of concentrate containing 41,370
tonnes of copper were produced (Q3 2012 - 134,539 tonnes containing
34,117 tonnes of copper). In Q3 YTD 2013, a record 485,297 tonnes of
concentrate containing 113,146 tonnes of copper were produced (Q3 YTD
2012 - 373,847 tonnes containing 94,022 tonnes of copper).
Cobalt produced totalled 741 tonnes for Q3 2013, a 42% increase over Q3
2012 and the highest amount of cobalt produced in a quarter since Q4
2010. Cobalt produced totalled 1,766 tonnes for Q3 YTD 2013, an 11%
increase over Q3 YTD 2012.
As announced previously, the Updated Phase 4 Expansion Project
commissioning highlights for Q3 2013 include new floatation circuit at
KTC and the oxide receiving, leaching and CCD facilities at Luilu.
The feasibility study for extending the T17 Open Pit mine into an
underground mining operation was completed during Q3 2013. Management
is continuing to advance the project with a view to making a decision
to proceed to production.
Total sales for Q3 2013 were $211.2 million, a 58% increase over Q3
2012. Total sales for Q3 YTD 2013 were $604.0 million, a 63% increase
over Q3 YTD 2012.
The realised copper price for Q3 2013 was $3.29/lb, a 6% decrease over
Q3 2012, while the realised cobalt price was $9.58/lb, a 6% decrease
over Q3 2012.
For Q3 2013, the Company earned a net income attributable to
shareholders of $42.6 million, an increase of $27.8 million from Q3
2012. For Q3 YTD 2013, the Company earned a net income attributable to
shareholders of $87.3 million, an increase of $55.7 million from Q3 YTD
Cash and cash equivalents as at September 30, 2013, amounted to $17.1
million (December 31, 2012 - $57.0 million).
As previously announced:
The third and final train of SX plant (taking overall SX facility to
300,000 tonnes per annum capacity), the new roaster, and the new lime
loading and storage plant (all part of the Updated Phase 4 Expansion
Project) are expected to be completed during Q4 2013. Total expected
project cost remains $769 million as previously announced.
Construction has commenced on Phase 5, which includes EW3 (2 x 30,000
tonnes per annum capacity Electro-Winning "EW" tankhouse units) and CM5
(mill of 11,700 tonnes per day nameplate capacity), and is expected to
be completed in Q4 2014.
The 3rd RH340 shovel was commissioned during October 2013.
The Company further announces that Mr. Paul Inbona, Chief Financial
Officer of the Company, tendered his resignation, effective November
18, 2013, to pursue other opportunities within the Glencore Xstrata
Group. Mr. Inbona will remain available to ensure a smooth transition
Mr. Jacques Lubbe has been appointed as the new Chief Financial Officer
of the Company, effective November 18, 2013. Mr. Lubbe, CA (SA), has
more than 5 years of experience in the mining industry in the
Democratic Republic of Congo. Mr. Lubbe joins the Company from Mutanda
Mining SARL, another subsidiary of the Glencore Xstrata Group, where he
currently is the Chief Financial Officer.
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.
Forward Looking Statements
This press release may contain forward-looking statements, including,
but not limited to, improved volumes and grades to be mined at KTO
Underground Mine, completion of the third train of the SX plant, the
new roaster and the new lime loading and storage plant being completed
in Q4 2013 and Phase 5 being completed in Q4 2014, the ongoing
development of the T17 underground mine and the expected change in
management. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs and
assumptions based on information available at the time the statements
were made. Actual results or events may differ from those predicted in
these forward-looking statements. All of the Company's forward-looking
statements are qualified by the assumptions that are stated or inherent
in such forward-looking statements, including the assumptions listed
below. Although the Company believes that these assumptions are
reasonable, this list is not exhaustive of factors that may affect any
of the forward-looking statements. The key assumptions that have been
made in connection with the forward-looking statements include that the
increased development of development metres and backfill tonnes in Q3
2013 will provide access to higher grade zones at KTO Underground Mine,
the successful resolution of the near-term underground chamber
availability issues, all necessary equipment and parts will be
delivered and installed on schedule for Updated Phase 4 and Phase 5
and the change in management will occur as anticipated.
Forward-looking statements involve known and unknown risks, future
events, conditions, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different
from any future results, prediction, projection, forecast, performance
or achievements expressed or implied by the forward-looking statements.
Such factors include, among others, the actual results of current
exploration activities; actual results and interpretation of current
reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of
copper and cobalt; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the
completion of exploration, development or construction activities,
delays due to strikes or other work stoppage, both internal and
external to the Company as well as those factors disclosed in the
Company's current annual information form and other publicly filed
documents. Although Katanga has attempted to identify important factors
that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements 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
The Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information,
future events, or otherwise, except in accordance with applicable
This press release and the information forming the basis hereof was
prepared under the supervision of Tim Henderson, Technical Consultant,
Katanga and a 'Qualified Person' as such term is defined in National
Instrument 43-101. Mr. Henderson has reviewed and approved the contents
of this press release.
SOURCE: Katanga Mining Limited
For further information:
Tel: +41 (041) 766 71 10
Tel:+41 (041) 766 71 10