www.anvilmining.com
Anvil Mining is the leading copper producer in the Democratic Republic of Congo, employing more than 2,550 people. Copper production is forecast to increase to over 100,000 tonnes of copper per annum by 2011 from its four mining and processing operations.
Anvil Mining generates positive Q2 cash flows from its Kinsevere Stage I HMS plant
Democratic Republic of Congo (DRC) copper producer Anvil Mining Limited (TSX, ASX: AVM), has reported its results for the second quarter ending 30 June 2010, posting net income from continuing operations of $5.1 million ($0.03 per share), compared to a net loss of $11.3 million (-$0.13 per share) for the second quarter of 2009, due in large part to its Kinsevere Stage I Heavy Media Separation (HMS) plant.
Cash flows before working capital movements were $3.3 million ($0.02 per share), compared to negative cash flows of $6.4 million (-$0.07 per share) in Q2 2009.
The company`s positive financials are a result of improved copper sales. Net copper sales for the period totalled $14.5 million, an 88.3% increase from last year, while copper production for the second quarter of 2010 totalled 4,412 tonnes. Year-to-date production totalled 8,505 tonnes of copper contained in concentrate, versus 5,571 tonnes for the same period of 2009.
The sale of Dikulushi was also completed during the quarter for a gain of $5.9 million.
"We continue to generate positive cash flows from the Kinsevere Stage I HMS plant and expect to achieve our 2010 targeted production of 15,000 tonnes of copper contained in concentrate," said president and CEO Bill Turner.
The construction work on its Kinsevere Stage II 60,000 tonnes per year Solvent Extraction and Electro-Winning (SX-EW) plant project has continued during the second quarter and, with over 1,000 construction personnel now on site, the project has exceeded 750,000 LTI free man hours, Anvil said. The company has spent and committed approximately $167 million of the remaining $200 million required to finish the project.
As a result of construction delays caused by issues with expediting key materials and equipment to site, the full commissioning of Kinsevere Stage II is now expected to begin during the second quarter of 2011, Turner added.
Anvil has also completed the refinancing of its $100 million loan currently in place with Trafigura Beheer B.V. to an amount of $140 million. As of August 13, 2010, Anvil had approximately $51.9 million in cash and $24.0 million in available-for-sale investments.
The copper producer hopes to initiate further drilling at Kinsevere to enable the delineation of an expanded sulphide resource, as well as finish additional drilling and further metallurgical work to allow it to further evaluate the Mutoshi project. It is also looking for investment opportunities in the DRC to develop the company`s growth propsects further.
In other news, after more than 15 years with Anvil, Turner has informed Anvil`s board that he will be retiring in early 2011. The company is actively looking for his replacement and hopes to name the new CEO by the end of 2010.
Anvil Mining`s shares were up 2.6% on the news to $2.75 this morning.
Anvil is a copper producer in the Democratic Republic of Congo, where it has been in production since 2002. The company's current focus is on completing the Kinsevere Stage II Project, a $400 million SX-EW plant.
When completed, the Kinsevere Stage II project will be Anvil's flagship project. The Kinsevere deposit is located in the Katangan Copperbelt. The Kinsevere Mine currently operates as a Heavy Media Separation (HMS) operation, which was commissioned in 2007 and which, in 2009, produced 16,406 tonnes of copper in concentrate form.
