Anvil Mining Reports Record Net Income of $35.4 Million ($0.58 per share) for the Second Quarter 2007 and an Operating Profit of $43.1 Million on Concentrates Sales of $65.7 Million



    TSX, ASX: AVM
    Common shares outstanding 70.4 million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, Aug. 9 /CNW/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil"
or "the Company") and including its subsidiaries ("the Group") is pleased to
announce record consolidated net income of $35.4 million ($0.58 per share on a
weighted average number of shares basis) for the second quarter of 2007,
compared to $22.5 million ($0.42 per share) for the second quarter of 2006.
Concentrate sales also reached a quarterly record of $65.7 million, compared
to $43.0 million for the corresponding quarter of 2006. Operating cash flow
before working capital movements was a record $43.3 million ($0.71 per share),
compared to $27.9 million ($0.50 per share) for the second quarter of 2006.
Consolidated production for the second quarter totalled 8,395 tonnes of copper
and 583,269 ounces of silver contained in concentrates.

    
    Second Quarter Highlights

    -   Quarterly production of 8,395 tonnes of copper and 583,269 ounces of
        silver contained in concentrates.

    -   Record revenues from copper-silver and copper concentrate sales of
        $65.7 million, up 53% compared to the corresponding quarter of 2006.

    -   Record net income of $35.4 million ($0.58 per share), up by 57%
        compared to the corresponding quarter of 2006.

    -   Record operating profit (after depreciation and amortization) of
        $43.1 million up by 56% compared to the corresponding quarter of
        2006.

    -   Record cash flow from operating activities (before working capital
        movements) of $43.3 million ($0.71 per share) up by 55% compared to
        the corresponding quarter of 2006.

    -   Successful commissioning of the Stage I Heavy Media Separation
        ("HMS") plant at Kinsevere with commercial production for the plant
        achieved in late June.

    -   Completion of a bought deal equity financing for gross proceeds of
        C$201.2 million.

    -   Discovery of two new zones of oxide copper mineralization at
        Kinsevere and entering into an option to purchase two exploration
        licences in the Nambulwa region, located approximately 30 km north of
        the Kinsevere mine.

    -   Appointment of Ausenco Limited ("Ausenco") as the provider of
        engineering, procurement and construction management ("EPCM")
        services for the Kinsevere Stage II development.

    -   Cash and cash equivalents, including restricted cash, and investments
        in liquid assets of $284.2 million at the end of the quarter, equal
        to $4.03 per share.
    

    Bill Turner, President and Chief Executive Officer of Anvil, commented,
"We delivered a strong financial performance for the second quarter of 2007
with quarterly records achieved for revenue, operating profit, net income and
cash flow. Our strong financial performance was due to continued above-target
operational performance at the Dikulushi mine and increases in realized copper
and silver prices. We are proud to have produced the first copper concentrate
from the recently completed HMS plant at Kinsevere in June and to have Ausenco
Limited, a well-regarded international engineering firm from Australia, as the
provider of the EPCM services for the Kinsevere Stage II development."

    Outlook

    Above target production is being consistently achieved at the Dikulushi
mine and with the commencement of commercial production at Kinsevere in June,
the Company is still targeting approximately 50,000 tonnes (110 million
pounds) of copper production for 2007.
    While improved production at the Kulu mine is expected in the second half
of the year, the first semester production shortfall at Kulu will not be
recouped by year-end and therefore it is estimated that the revised 2007
copper production target for Kulu will be 9,000 tonnes of copper compared to
the original target of 15,000 tonnes. In order to improve metallurgical
recoveries at Kulu, the Company will table a pre-feasibility study in the
coming months with the aim of identifying the best option for reprocessing the
coarse rejects/tailings and optimizing the value of the deposit, which is
likely to involve Solvent Extraction Electro-winning ("SX-EW") processing.
    The floats and tailings from the HMS operation, which are being stored in
a retention dam for subsequent reprocessing, still average approximately 3%
copper. Furthermore, the Kulu resource is a loose gravel which can be mined
without the need for any waste stripping or drill and blast activities. It
also has low gangue-acid consumption characteristics which support a simple
whole-ore-leach approach and SX-EW processing which is expected to achieve
metallurgical recoveries of over 90%.

    The complete financial statements together with the related Management's
Discussion and Analysis of Financial Conditions and Results of Operations are
available on Anvil's website at www.anvilmining.com under the heading Investor
Relations/Financial Reports.

    
    Second Quarter 2007 Financial Results Conference Call Reminder

    A conference call will be held at 9:00 a.m. (EST - North America, Toronto
time), coinciding with 9:00 pm (AWST - Australia, Perth time) on Friday,
August 10, 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: 1-800-594-3615
        -  For local and overseas calling: 1-416-644-3427

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

        -  CNW Group website at:
    www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1941280

    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 21241326 followed by the
           pound (No.) 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 Kulu copper tailings operation in the Katanga
Province of the Democratic Republic of Congo.

    Additional Notes: The information in this news release that relates to
in-situ Mineral Resources is based on information compiled by Gerry Fahey of
FinOre Pty Ltd. Gerry Fahey is a Chartered Professional and a member of the
Australasian Institute of Mining and Metallurgy, and a member of the
Australian Institute of Geoscientists, and has sufficient experience, which is
relevant to the style of mineralization and type of deposit under
consideration, and to the activity he is undertaking, to qualify as a
Qualified Person in terms of the Canadian National Instrument 43-101. Gerry
Fahey consents to the inclusion of such information in this news release in
the form and context in which it appears. The information in this news release
that relates to engineering and construction works at Kinsevere has been
reviewed by Mike Newman, Anvil's Vice President Project Development. Mike
Newman is a Chartered Engineer and a member of the Institute of Mechanical
Engineers. Mike Newman has consented to the inclusion of such information in
this news release in the form and context in which it appears.

    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, Kulu 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.


    
                                   Appendix
                      Key Financial and Production Data

    -------------------------------------------------------------------------
                                          3 Months              6 Months
                                        ended June 30         ended June 30
                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    Revenues: ($ millions)
    Copper-silver and copper
     concentrate sales                 65.7       43.0      107.7       76.2
    -------------------------------------------------------------------------
    Operating profit after
     depreciation and
     amortization: ($ millions)        43.1       27.7       70.3       43.2

    Net Income : ($ millions)          35.4       22.5       56.4       30.8
    -------------------------------------------------------------------------
    Realized price: ($) Dikulushi mine
    -------------------------------------------------------------------------
    Copper per pound                   3.43       3.64       3.24       2.93
    -------------------------------------------------------------------------
    Silver per ounce                  12.52      11.26      12.94      10.32
    -------------------------------------------------------------------------
    Realized price: ($) Kulu mine:
    -------------------------------------------------------------------------
    Copper concentrate per tonne
     (ex mine gate)                     883        627        726        536
    -------------------------------------------------------------------------

    PRODUCTION STATISTICS:

    Dikulushi mine
    Ore processed (tonnes)(1)        85,480    135,234    172,742    263,493
    Copper grade (%)                   7.68       4.64       7.35       4.80
    Contained Copper in Ore
     (tonnes)                         6,564      6,278     12,702     12,630
    Recovery (%)                       90.7       89.1       89.9       87.9
    Copper produced in
     concentrates (tonnes)            5,951      5,601     11,420     11,106
    Silver produced in
     concentrates (ounces)          583,269    526,513  1,121,127  1,059,355
    Ore mined (tonnes)                    -    172,321          -    323,185
    Waste mined (bcm)                     -    435,797          -    981,671
    -------------------------------------------------------------------------
    Costs of production: ($)
    Operating cash costs per pound
     (after silver credits)
     (ex mine gate)                    0.14       0.29       0.11       0.38
    Total cash costs (after silver
     credits)(2)                       0.51       1.01       0.55       1.03
    -------------------------------------------------------------------------


                  Key Financial and Production Data (cont.)

                                          3 Months              6 Months
                                        ended June 30         ended June 30
    PRODUCTION STATISTICS:             2007       2006       2007       2006

    Kulu mine
    Ore processed (tonnes)(3)        74,987     80,848    155,232    132,656
    Copper grade (%)                   4.59       8.54       5.33       8.32
    Contained copper in ore (tonnes)  3,446      6,920      8,293     11,038
    Recovery (%)                       44.5       72.6       49.3       67.0
    -------------------------------------------------------------------------
    Copper produced in
     concentrates (tonnes)            1,964      5,497      4,536      8,129
    Ore mined (tonnes)              132,813     89,081    150,036    114,113
    -------------------------------------------------------------------------
    Costs of production: ($)
    Operating cash costs per tonne
     (ex mine gate)                     494        242        494        242
    Kinsevere mine(4)
    Ore processed (tonnes)(3)         8,367                 8,367
    Copper grade (%)                   9.02                  9.02
    Contained copper in ore (tonnes)    754                   754
    Recovery (%)                       63.7                  63.7
    Copper produced in
     concentrates (tonnes)              480                   480
    -------------------------------------------------------------------------

    1.  No mining costs were incurred at Dikulushi because all feed to the
        plant is sourced from the Run-of-Mine stockpiles of blended high-
        grade and low-grade ore during the transition to underground mining
        which is expected to commence during the fourth quarter of 2007.
    2.  Ore processed at Dikulushi relates to ore processed through the ball
        mill and flotation plant.
    3.  Ore processed at Kulu and Kinsevere relates to ore processed through
        the HMS plant.
    4.  The Kinsevere mine commenced production in June 2007.


                   Consolidated Balance Sheets (unaudited)


                                                        June 30  December 31
                                                           2007         2006
                                                              $            $
    ASSETS
    Current assets
    Cash and cash equivalents                           202,997       59,302
    Restricted cash                                         396          219
    Accounts receivable                                  52,315       29,594
    Inventories                                          18,130       18,020
    Investments                                          81,158       95,819
    Prepaid expenses and deposits                        10,421        6,936
                                                       ----------------------
                                                        365,417      209,890

    Deferred financing fees                                   -          791
    Prepayments                                             524            -
    Investments                                           4,788            -
    Deferred mining costs                                 6,914            -
    Exploration and acquisition expenditure             133,195      127,138
    Property, plant and equipment                       101,132       63,930
    Future income tax asset                                 737          737
                                                       ----------------------
                                                        612,707      402,486
                                                       ----------------------
                                                       ----------------------
    LIABILITIES
    Current liabilities
    Accounts payable and accrued liabilities             14,442       14,285
    Current income taxes                                  1,118        3,281
    Other liabilities                                       911          676
    Current portion of long-term debt                     7,677        8,000
    Purchase consideration payable                        1,250       46,250
                                                       ----------------------
                                                         25,398       72,492

    Long term debt                                            -        4,000
    Future income tax liability                          36,453       36,505
    Asset retirement obligations                         10,535        1,402
                                                       ----------------------
                                                         72,386      114,399
    Non controlling interest                             12,928        8,291
                                                       ----------------------
                                                         85,314      122,690
                                                       ----------------------
    Shareholders' equity
    Equity accounts                                     377,030      186,523
    Retained earnings                                   148,964       92,714
    Accumulated other comprehensive income                1,399          559
                                                       ----------------------
    Total shareholders' equity                          527,393      279,796
                                                       ----------------------
                                                        612,707      402,486
                                                       ----------------------
                                                       ----------------------


    Consolidated Statements of Income and Comprehensive Income (unaudited)

                                        3 Months ended        6 Months ended

                                           June 30               June 30
                                       2007       2006       2007       2006
                                          $          $          $          $

    Concentrate sales                65,696     42,965    107,732     76,178
    Operating expenses              (20,338)   (13,479)   (33,369)   (29,312)
    Amortization                     (2,212)    (1,817)    (4,032)    (3,624)
                                   ------------------------------------------
    Operating profit                 43,146     27,669     70,331     43,242

    Other income                      2,195      1,396      3,346      1,765

    General, administrative and
     marketing                       (3,049)    (2,123)    (5,455)    (3,805)
    Exploration expenditure written
     off                             (1,063)         -     (1,063)         -
    Foreign exchange gains/(losses)     (88)       174        (38)      (271)
    Social development                 (537)         -     (1,043)         -
    Stock based compensation           (645)      (355)    (1,204)      (598)
    Interest and financing fees        (418)      (193)      (819)    (4,048)
                                   ------------------------------------------
    Earnings before income tax and
     non-controlling interest        39,541     26,568     64,055     36,285

    Income tax                         (237)      (834)    (1,048)      (830)
    Non-controlling interest         (3,942)    (3,235)    (6,567)    (4,705)
                                   ------------------------------------------
    Net Income                       35,362     22,499     56,440     30,750

    Other comprehensive income,
     net of taxes:

    Net unrealized gains/(losses)
     on available-for-sale
     securities                         784          -        713          -
                                   ------------------------------------------

    Total comprehensive income       36,146     22,499     57,153     30,750
                                   ------------------------------------------
                                   ------------------------------------------

    Basic earnings per share           0.58       0.42       0.96       0.71
    Diluted earnings per share         0.57       0.41       0.94       0.69


                       Cash Flow Statement (unaudited)

                                        3 Months ended        6 Months ended

                                           June 30               June 30
                                       2007       2006       2007       2006
                                          $          $          $          $
    Cash flows from operating
     activities
    Net earnings for the period      35,362     22,499     56,440     30,750
    Items not affecting cash
      Amortization                    2,212      1,817      4,032      3,624
      Exploration expenditure
       written off                    1,063          -      1,063          -
      Non-controlling interest        3,942      3,235      6,567      4,705
      Borrowing costs - amortized       312          -        463      1,553
      Unrealized foreign exchange
       (gains)/losses                  (221)       (36)      (227)        (2)
      Future tax                          -          -        (52)         -
      Stock based compensation          645        355      1,204        598
    Changes in non-cash working
     capital                        (24,733)   (13,476)   (35,090)   (26,132)
                                   ------------------------------------------
                                     18,582     14,394     34,400     15,096
                                   ------------------------------------------
    Cash flows from investing
     activities
    Payments for property, plant
     and equipment                   (8,094)    (4,501)   (30,175)    (7,100)
    Proceeds from sale of assets          -         73         13         73
    Payments for exploration and
     evaluation expenditure          (4,910)    (2,688)    (8,940)    (4,009)
    Payment for acquisition               -          -    (36,000)         -
    Payment for investment in
     Sub-Sahara                      (3,972)         -     (3,972)         -
    Payments for deferred acqui-
     sitions costs                        -       (328)         -     (4,078)
    Payments for investments              -   (109,060)         -   (109,060)
    Proceeds of principal
     repayments from investments      8,694      9,095     14,686      9,095
                                   ------------------------------------------
                                     (8,282)  (107,409)   (64,388)  (115,079)
                                   ------------------------------------------
    Cash flows from financing
     activities
    Proceeds from issue of shares
     (net of issue expenses)        179,787     14,639    179,869    136,575
    Payment for borrowing fees          (80)         -        (80)         -
    Movement in restricted cash        (177)         -       (177)         -
    Repayment of borrowings          (2,000)         -     (4,000)   (10,652)
    Advances on behalf of Anvil
     Mining Congo trusts (10%
     owner of the Dikulushi mine)    (1,411)         -     (1,929)
                                   ------------------------------------------
                                    176,119     14,639    173,683    125,923
                                   ------------------------------------------
    Net increase/ (decrease) in
     cash and cash equivalents      186,419    (78,376)   143,695     25,940
    Cash and cash equivalents at
     beginning of the period         16,578    112,261     59,302      7,945
    Effects of exchange rate
     changes on cash held in
     foreign currencies                   -         (1)         -         (1)
                                   ------------------------------------------
    Cash and cash equivalents at
     end of the period              202,997     33,884    202,997     33,884
                                   ------------------------------------------
    

    %SEDAR: 00020549E




For further information:

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

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