Anvil Mining Reports First Quarter 2009 Financial Results

    Common shares outstanding 101.3 million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, May 15 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM),
("Anvil" or the "Company"), today announced a net loss for the first quarter
ended March 31, 2009, of $ 18.8 million (-$0.27 per share on a weighted
average number of shares basis), compared to net income of $21.6 million
($0.30 per share) for the first quarter of 2008. Net sales for the first
quarter of 2009 totalled $1.6 million, compared to $75.3 million for the
corresponding quarter in 2008. Negative cash flows from operating activities,
before working capital movements, of $11.9 million (-$0.17 per share),
compared to a positive cash flow of $35.3 million ($0.50 per share) in the
first quarter of 2008.
    The Company's results were negatively affected by a number of factors
including: significantly lower production and sales resulting from Dikulushi
being placed on care and maintenance, the cessation of Heavy Media Separation
("HMS") processing at Mutoshi, the suspension of HMS operations and open pit
mining at Kinsevere during the fourth quarter of 2008 and lower realized
copper prices and one-off charges of $7.1 million for the first quarter of
    Bill Turner, President and CEO of Anvil, commented, "Although copper
prices have shown some signs of improvement since the beginning of the year,
the Company continues to focus on cost minimization and cash preservation, in
accordance with the strategy put in place during the fourth quarter of 2008.
With the recommencement of the Kinsevere HMS plant in late March 2009, the
Company expects to be able to maintain a positive operating cash flow from the
HMS operations for the remainder of 2009 and be better positioned to secure
the funding required for completion of the Kinsevere Stage II SX-EW processing
plant. The Kinsevere HMS plant has performed well since its restart and is on
target to produce 8,900 tonnes of copper through to the third quarter of 2009.
As at April 30, 2009 it had produced 7,381 tonnes of concentrate at an average
grade of 27.4% copper, for 2,022 tonnes of copper metal."
    The complete first quarter 2009 unaudited financial statements together
with the related Management's Discussion and Analysis (MD&A) are available on
Anvil's website at under the heading "Financial Reports"
within the Investor Relations section.

    Cash and Liquidity

    As at May 14, 2009, Anvil had approximately $54.0 million in cash
(including the net proceeds from the recent C$34.5 million Common Share
offering), $7.8 million in available-for-sale investments and $6.2 million of
receivables, approximately $2.7 million of which it expects to realize during
May 2009. During the next 12 months the Company's commitments include $15.0
million for pas de porte (entry premium) payments due to Gécamines and $22.0
million that relate to the Kinsevere Stage II development.
    On May 4, 2009 the Company completed an offering of Common Shares that
raised gross proceeds of approximately C$34.5 million, which will be used to
make entry premium payments of $15 million due to Gécamines in respect of the
Kinsevere property and for general corporate purposes.
    The Company remains committed to the development of its Kinsevere Stage
II 60,000 tonnes per year SX-EW plant, the completion of which requires
additional funding of approximately $200 million. The Company is continuing to
make progress in obtaining the funding required to complete Kinsevere Stage
II. Work on the technical due diligence report being prepared by SRK
Consulting for the syndicate of banks is progressing, and when completed, will
allow for credit approval to be sought during the second half of 2009.

    Kinsevere HMS Production

    The Kinsevere HMS plant was restarted on March 27, 2009, with feed to the
plant sourced from the Run of Mine ("ROM") stockpile comprising 259,000 tonnes
of ore grading 5.7% copper. The HMS plant is expected to produce approximately
8,900 tonnes of copper contained in concentrates through to Q3 2009, at an
operating cash cost at the mine gate of less than $0.50/lb Cu (inclusive of
sunk costs). Table 1 below sets out the details of the performance of the HMS
plant for the year to date.
    Work is being carried out to investigate options available to extend
operation of the Kinsevere HMS plant beyond the third quarter of 2009.
Additional feed is potentially available from the Stage II stockpiled ore,
which currently amounts to more than one million tonnes at an average grade of
2.9% copper and there is potential to resume mining in the central pit where
there are available ore faces and broken stocks with an inventory of
approximately 780,000 tonnes at an average grade of 6.6%.

    Table 1. Performance of Kinsevere HMS Plant
                                                                     to Date
                                                                       as at
                                                           Month    April 30,
                                                        of April        2009
    Crusher Circuit
    - Feed Processed (dmt)                                56,953      63,878
    - Feed Grade (% Cu)                                     5.13        5.13
    HMS Plant
    - Feed Processed (dmt)                                24,416      27,091
    - Feed Grade (% Cu)                                     9.79        9.83
    - Recovery Cu (%)                                       65.6        66.2
    - Concentrate Produced (dmt)                           5,498       6,207
    - Concentrate Grade (% Cu)                             28.51       28.41
    - Copper Produced (mt)                                 1,568       1,764
    Spirals Circuit
    - Feed Grade (% Cu)                                     3.31        3.30
    - Copper Produced (mt)                                   234         258
    Total Plant
    - Concentrate Produced (dmt)                           6,561       7,381
    - Concentrate Grade (% Cu)                              27.5        27.4
    - Copper Produced (mt)                                 1,802       2,022
    - Recovery Cu (%)                                       61.7        52.2
    Operating cash cost ($/lb Cu)                           0.41        0.41
    Note: the HMS plant restarted on March 27, 2009.
    Note: Operating cash cost: cost at mine gate, inclusive of sunk costs on
          available ROM feed of $0.11/lbCu.

    Status of Kinsevere Stage II

    During the fourth quarter of 2008, the Company placed the remaining
engineering design, fabrication, construction works and procurement for the
Kinsevere Stage II SX-EW development on hold until adequate funding has been
secured. As at May 14, 2009 approximately $190 million ($168 million spent,
$22 million committed) of the budgeted cost of $380 million had been invested.
    The Company is in discussions with contractors regarding completion of
the outstanding engineering design work relating mainly to electrical, piping
and instrumentation which is expected to take two to three months to complete.
The Company remains well positioned to readily recommence the Stage II
development and is reviewing suitable arrangements under which works could be
recommenced as quickly as possible, should the Company obtain the necessary
funding. The Company estimates that the timeframe for completion of
construction, dry commissioning, and hydraulic testing for readiness to
receive ore is approximately twelve months from award of contract.

    Reminder - Q1 Conference Call and Webcast

    A conference call will be held at 8:30 a.m. (Canada, Toronto time) today,
Friday May 15, 2009 coinciding with 8:30 p.m. (AWST - Australia, Perth time)
on the same day, to discuss the results announced in this News Release.

    The details to access the conference call and the live audio webcast are 
as follows:

    Conference call: 1-416-915-5761

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

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

    - CNW Group website at:

    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 1-416-640-1917, Reservation
      number 21305477 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 Securities Exchange (as CDIs) under the symbol AVM.

    Caution Regarding Forward Looking Statements: This news release contains
"forward-looking statements" and "forward-looking information", based on
assumptions and judgements of management regarding future events and results.
Such "forward-looking statements" and "forward-looking information which may
include, but is not limited to the intended use of proceeds from the common
share offering, the operation of the Kinsevere HMS plant, the liquidation of
the Company's available-for-sale investments, the Company's plans for
expansions of the Kinsevere copper mine and negotiations with the DRC
Government regarding the Mutoshi Joint Venture Agreement. Often, but not
always, forward-looking information can be identified by the use of words such
as "plans", "expects", "is expected", "is expecting", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes", or
variations (including negative variations) 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. The purpose of forward-looking
information is to provide the reader with information about management's
expectations and plans for 2009. Readers are cautioned that forward-looking
information involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Anvil
and/or its subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
information. Such factors include, among others, the actual market prices of
the available-for-sale investments, the actual market price 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 funding to provide for the
recommencement of construction of Kinsevere Stage II will be available or 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. In addition,
there can be no assurance that the final outcome of the DRC Government review
of the Mutoshi Joint Venture agreement will not have an adverse effect on the

                Key Financial and Production Data (unaudited)

                                                      Quarter ended March 31
                                                            2009        2008
    Revenues: ($ millions)                                   1.6        75.3
    Operating (loss) / profit : ($ millions)               (14.5)       33.7
    Provision for impairment: ($ millions)                  (4.7)          -
    Net (loss)/ Income: ($ millions)                       (18.8)       21.4

    Consolidated Group
    Copper produced in concentrates (tonnes)                 199      12,027
    Silver produced in concentrates (ounces)                   -     482,655

    Per Mine
    Kinsevere mine
    Ore mined (tonnes)                                         -     388,958
    Ore processed (tonnes)(2)                              2,695      91,990
    Copper grade (% Cu)                                     10.2         9.1
    Contained copper in ore (tonnes)                         275       8,399
    Recovery Cu (%)                                         72.2        57.8
    Copper produced in concentrates (tonnes)                 199       4,855
    Copper produced in blister (tonnes)                      461           -
    Costs of production ($)

    Operating cash costs per tonne (ex mine gate) cost         -         374
    Dikulushi mine
    Ore mined (tonnes)                                         -      32,864
    Ore processed (tonnes)(3)                                  -      99,533
    Feed grade (% Cu)                                          -         5.3
    Contained Copper in Ore (tonnes)                           -       5,303
    Recovery Cu (%)                                            -        92.1
    Copper produced in concentrates (tonnes)                   -       4,885
    Silver produced in concentrates (ounces)                   -     482,655
    Operating cash cost (ex mine gate)
     (after silver credits) ($/lb)                             -        0.21
    Total cash costs from operations ($/lb)                    -        0.70
    Mutoshi mine
    Ore mined (tonnes)                                         -      87,956
    Ore processed (tonnes)(4)                                  -     106,734
    Copper grade (% Cu)                                        -         4.3
    Contained copper in ore (tonnes)                           -       4,599
    Recovery Cu (%)                                            -        49.7
    Copper produced in concentrates (tonnes)                   -       2,287
    Costs of production: ($)
    Operating cash costs per tonne of concentrate
     (ex mine gate)                                            -         561
    1. Includes provisional and final pricing adjustments and treatment and
       refining charges.
    2. Kinsevere commenced production in June 2007 as an HMS processing
    3. Ore processed at Dikulushi relates to ore processed through the ball
       mill and flotation plant.
    4. Ore processed at Mutoshi and Kinsevere relates to ore processed
       through the HMS plants.

                   Consolidated Balance Sheets (unaudited)
              (Expressed in thousands of United States dollars)

                                                        March 31 December 31
                                                            2008        2009
                                                               $           $
    Current assets
    Cash and cash equivalents                             25,617      45,033
    Restricted cash                                          885         871
    Accounts receivable                                   12,813      24,243
    Inventories                                           28,993      31,064
    Available-for-sale investments                        20,663      24,032
    Prepaid expenses and deposits                         44,731      51,258
                                                         133,702     176,501
    Equity accounted investment                                -       1,320
    Long-term inventory                                   10,651      10,651
    Long-term receivable                                  13,192      12,464
    Exploration and acquisition expenditure               52,418      51,352
    Property, plant and equipment                        304,685     280,334
                                                         514,648     532,622
    Current liabilities
    Accounts payable and accrued liabilities              38,163      34,731
    Income taxes payable                                     415         463
    Other liabilities                                      1,951       2,460
    Current portion of long-term debt                        412         362
                                                          40,941      38,016
    Future income tax liability                           20,886      24,431
    Long-term debt                                           272         321
    Asset retirement obligations                          13,195      12,980
                                                          75,294      75,748
    Non-controlling interest                               1,862       1,909
                                                          77,156      77,657
    Shareholders' equity
    Equity accounts                                      384,779     383,419
    Retained earnings                                     52,154      70,987
    Accumulated other comprehensive income                   559         559
    Total shareholders' equity                           437,492     454,965
                                                         514,648     532,622

         Consolidated Statements of Income and Comprehensive Income
               (Expressed in thousands of United States dollars
                          except per share amounts)

                                                      Quarter Ended March 31
                                                            2009        2008
                                                               $           $

    Concentrate sales                                      1,645      75,267
    Operating expenses                                   (12,452)    (34,058)
    Amortization                                          (3,664)     (7,493)
                                                         (14,471)     33,716

    Other income                                             321       2,732
    Share of loss in associates                                -        (336)

    Provision for impairment of assets                    (4,677)          -
    General, administrative and  marketing                (2,635)     (5,305)
    Foreign exchange gains                                   641          48
    Stock based compensation                              (1,360)       (567)
    Interest and financing fees                             (238)     (1,605)
    (Loss) / earnings before income tax
     and non-controlling interest                        (22,419)     28,683

    Income tax recovery / (expense)                        3,542      (5,597)
    Non-controlling interest share of (gain) / loss           44      (1,647)
    Net (loss) / income                                  (18,833)     21,439

    Other comprehensive income, net of  taxes
    Net unrealized gain on available-
     for-sale investments                                      -         142
    Total comprehensive (loss) / income                  (18,833)     21,581
    Basic (loss) / earnings per share ($)                  (0.27)       0.30
    Diluted (loss) / earnings per share ($)                (0.27)       0.30

               Consolidated Statement of Cash Flows (unaudited)
              (Expressed in thousands of United States dollars)

                                                      Quarter ended March 31
                                                            2009        2008
                                                               $           $

    Cash flows from operating activities
    Net earnings for the period                          (18,833)     21,439
    Items not affecting cash
      Amortization                                         3,664       7,493
      Loss on derivative instruments                           -         960
      Share of loss in associates                              -         336
      (Profit) / Loss on sale of assets                      (10)        288
      Provision for impairment of assets                   4,677           -
      Accretion expense                                      215           -
      Non-controlling interest share of income / (loss)      (44)      1,647
      Unrealized foreign exchange losses                     612          82
      Future tax                                          (3,546)      2,533
      Stock based compensation                             1,360         567
    Changes in non-cash working capital                   10,781     (16,354)
                                                          (1,124)     18,991
    Cash flows from investing activities
    Payments for property, plant and equipment           (17,648)    (39,242)
    Proceeds from sale of assets                              10         179
    Payments for exploration and evaluation expenditure   (1,066)     (4,767)
    Proceeds of principal repayments from investments        468       1,248
                                                         (18,236)    (42,582)
    Cash flows from financing activities
    Proceeds from issue of shares
     (net of issue expenses)                                   -         216
    Proceeds from borrowings (net of fees incurred)            -         800
    Movement in restricted cash                              (14)         98
    Disbursements on behalf of Dikulushi Trusts               (3)       (795)
                                                             (17)        319

    Net decrease in cash and cash equivalents            (19,377)    (23,272)
    Cash and cash equivalents at beginning
     of the period                                        45,033     215,754
    Effects of exchange rate changes on
     cash held in foreign currencies                         (39)         15
    Cash and cash equivalents at end of the period        25,617     192,498
    %SEDAR: 00020549E

For further information:

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

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