Anvil Mining Provides Update on Cash and Investments

    Common shares outstanding 71.1 million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, Jan. 29 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil"
or the "Company") today provided an update on the status of its portfolio of
cash and short-term investments. All currency amounts in this news release are
in United States Dollars. As a result of the Company's on-going review of its
portfolio and recent events experienced by certain of its investments, the
Company now anticipates that it will increase the provision for impairment of
income from its investments to approximately $9.4 million in its 2007 year-end
financial statements. This compares to a provision of $0.8 million that was
included in the Company's financial statements for the quarter ended
September 30, 2007.

    As at January 28, 2008, Anvil had cash, short-term investments and other
investments totalling $273.3 million, held as follows:

                                                        Percentage of cash,
                                                      short-term investments
    Description                             Value $    and other investments
    Cash and short-term investments
      Short-term bank deposits(1)            165.0            60.4%
      Call accounts with transactional
       bankers(1)                             36.0            13.2%
    Total cash and short-term investments    201.0            75.0%
    Other investments
    (weighted average life between one
     and four years)
      Medium-term U.S. floating rate notes    48.6            17.8%
      Single-name commercial paper            10.0             3.7%
      U.S. sub-prime mortgage-backed
       securities                              7.2             2.6%
      Australian prime mortgage-backed
       securities                              4.5             1.6%
      Singaporean prime mortgage-backed
       securities                              2.0             0.7%
    Total other investments                   72.3            25.0%
     OTHER INVESTMENTS                       273.3           100.0%
    (1) Held with major international banks rated AA or higher.

    In its financial statements for the period ending September 30, 2007, the
Company included a provision of $0.8 million, for impairment of income from
its investments. This provision related to a $5 million medium-term floating
rate investment. The Company's financial risk management advisors, Oakvale
Capital Limited ("Oakvale"), last week notified the Company that the position
of this investment has significantly deteriorated. As a result, the Company
expects to increase its provision for impairment in respect of this investment
by an additional $4.2 million, to equal the total amount of the investment.
    The Company was also notified by Oakvale that two further investments,
(totalling $7.2 million of U.S. sub-prime mortgage-backed securities
investments) were at increased risk. One investment, in the amount of
$5 million, has experienced a material ratings downgrade from AA to CCC. After
consultation with Oakvale, the Company plans to provide $3.8 million for
possible loss on this investment. Finally, a third investment, in the amount
of $2 million, has experienced a ratings downgrade from AA to A as a
consequence of failing to meet its asset collateralization test, although it
has continued to meet its interest coverage test. Based on advice from
Oakvale, the Company will provide $0.6 million against this investment.
    Oakvale further advised the Company that to date there has been no
impairment, and there is no current risk of impairment, on its remaining
investments, with interest income and principal repayments occurring as
expected, and that based on currently available information, Oakvale does not
see further risk of impairment. It also notes that since the original
investment of these funds in the second quarter of 2006, the interest received
to December 31, 2007 exceeds the $9.4 million provision by almost
$2.4 million.
    Standard and Poors ("S&P") credit ratings of the Company's $72.3 million
of other investments itemised above is as follows; $23.6 million AAA,
$16.7 million AA, $10 million A+, $2 million A, $10 million BBB+, $5 million
CCC and $5 million D. Of the additional provision of $8.6 million, $8 million
relates to the two investments rated CCC and D respectively.
    Based on anticipated cash flow from its 2008 targeted production and in
conjunction with the Company's cash, cash equivalents, investments, and debt
capacity (currently no borrowing), the Company expects that it will have
sufficient financial resources to meet its 2008 and 2009 exploration and
development plans, including the completion of its 60,000 tonnes per annum
SX-EW Stage II development at the Kinsevere mine in the Democratic Republic of

    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
portfolio of short-term investments and its 2008and 2009 development plans,
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 condition of financial markets.

    %SEDAR: 00020549E

For further information:

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

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