LONDON, United Kingdom, Nov. 13 /CNW/ - Katanga Mining Limited (TSX:KAT) ("Katanga" or the "Company") today announces its financial results for
the calendar quarter and the nine months ended September 30, 2009.
Highlights during and subsequent to the three months ended September 30,
2009 (expressed in US dollars)
Total sales for the quarter were $76.2 million, comprising $58.4 million
for copper cathode (9,623 tonnes), $17.8 million for cobalt metal (620
tonnes) and cobalt concentrate.
A gross profit of $2.1 million and a net loss of $12.6 million have been
recognized in the quarter.
There was a net increase in cash and cash equivalents in the quarter of
$3.1 million leaving the Company with available funds of $152.8 million
at the quarter end.
As stated in the Company's press release dated September 8, 2009, the
Company announced its intention to accelerate the ramp-up of its
project to 150,000 tonnes of copper and 8,000 tonnes of cobalt per
annum (the "Accelerated Development Plan") through the
earlier completion of the construction of Phases III and IV, as
disclosed in the Company's technical report dated March 31, 2009 (refer
to the Company's press release dated March 31, 2009). It is expected
that the Accelerated Development Plan will be substantially funded by
existing cash balances and cash generated by operations.
As stated in the Company's press release dated July 27, 2009, the
Company signed an amended Kamoto Copper Company ("KCC") Joint Venture
Agreement (the "AJVA") with La Generale des Carrieres et des Mines
("Gecamines"). The key areas of the new AJVA are: to release
the Dikuluwe and Mashamba West Deposits; to merge the DRC Copper and
Cobalt Project and KCC joint ventures; and address requirements of the
Government of the Democratic Republic of Congo resulting from the
review of mining partnerships with Gecamines.
Operations and Project Summary for the quarter ended September 30, 2009
During the quarter ended September 30, 2009, 315,879 tonnes of ore were
mined with an average copper grade of 3.78% and cobalt grade of 0.46%.
This represents a 24% increase over the previous quarter.
Open Pit (T17)
398,302 tonnes of ore were produced (a 6% decrease from the previous
quarter) with a copper grade of 1.17% and a cobalt grade of 0.75%. The
decrease in the amount of ore produced is consistent with the expected
production in the mine plan in the Accelerated Development Plan.
539,107 tonnes of ore were processed from both the underground and the
open pit mines from which 50,908 tonnes of concentrate were produced, a
10% increase from the second quarter due to the increase in underground
extraction and the commissioning of the CM1 mill.
Luilu Processing Plant
In the three months ended September 30, 2009 the Company achieved
production of 10,351 tonnes of copper cathode and 628 tonnes of cobalt
metal (a 9% and 6% increase on the previous quarter production
respectively). Production of both finished copper and cobalt in the
quarter has been constrained by process inefficiencies in the
metallurgical plant and refinery which have now been corrected.
During the quarter, phase II of the expansion plan was substantially
completed with the only significant outstanding item being the hot
commissioning of the new roaster. The hot commissioning process has
already started and will be completed in the fourth quarter. The phase
III tendering process has commenced for engineering and procurement
Katanga's Financial Statements and Management's Discussion and Analysis
for the quarter will be filed on SEDAR, href="http://www.sedar.com/">www.sedar.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.
This press release contains "forward-looking information" within the
meaning of Canadian securities legislation, concerning the business,
operations and financial performance and condition of Katanga.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled estimates",
"forecasts", "intends", "anticipates", "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may, "could", "would", "might",
"will" or "will be taken", "occur", or "be achieved". Forward-looking
statements 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 forward-looking statements, including but not limited to: risks
relating to the refurbishment of existing facilities; unexpected events
during construction, expansion and start-up; variations in ore grade,
tonnes mined; future prices of copper and cobalt; 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 such 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 forward-looking statements. Katanga does
not undertake to update any forward-looking statements that are
incorporated herein, except in accordance with applicable securities
SOURCE Katanga Mining Limited
For further information: For further information:
Katanga Mining Limited
+44 (0) 20 7440 5824
Katanga Mining Limited
+44 (0) 7983 447 775