ZUG, SWITZERLAND, Nov. 14, 2012 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its financial results for the third quarter of 2012.
Katanga's Financial Statements and Management's Discussion and Analysis
will be filed on SEDAR, www.sedar.com.
Highlights during the three and nine months ended September 30, 2012,
During the three months ended September 30, 2012 ("Q3 2012"), the
Company mined 1,596,822 tonnes of ore (29% higher than the three months
ended September 30, 2011 ("Q3 2011")) at a grade of 4.29% resulting in
contained copper in ore mined of 68,563 tonnes, approximately 274,000
tonnes on an annualized basis. During the nine months ended September
30, 2012 ("Q3 YTD 2012"), the Company mined 4,128,283 tonnes of ore,
15% higher than the nine months ended September 30, 2011 ("Q3 YTD
2011"), at a grade of 4.04% resulting in contained copper in ore mined
of 166,708 tonnes.
Ore mined and hoisted at KTO Underground Mine during Q3 2012 was a
record 505,008 tonnes, a 27% increase over Q3 2011. The average copper
grade for Q3 2012 was 3.64%. During Q3 YTD 2012, ore mined and hoisted
was 1,377,893 tonnes, a 15% increase over Q3 YTD 2011. The average
copper grade for Q3 YTD 2012 was 3.65%.
Ore mined at KOV Open Pit during Q3 2012 was a record 1,091,814 tonnes,
30% above Q3 2011. The copper grade of ore mined from KOV Open Pit for
Q3 2012 averaged 4.59%. During Q3 YTD 2012, the Company mined
2,750,390 tonnes of ore, 38% above Q3 YTD 2011. The copper grade of
ore mined averaged 4.24%.
Higher grade ore has become available during Q3 2012 in Cut 1D as mud
has been removed from the bottom of KOV Open Pit.
Ore milled at the Kamoto Concentrator ("KTC") during Q3 2012 was a
production record of 1,274,850 tonnes, an increase of 24% from Q3
2011. During Q3 YTD 2012, 3,511,566 tonnes were milled, an increase of
Notwithstanding the power availability issues detailed below, copper
produced in metal and concentrate for Q3 2012 totalled a production
record of 25,868 tonnes, and an increase of 9% compared to Q3 2011. For
Q3 YTD 2012, 68,929 tonnes were produced, with copper metal produced
increasing by 14%.
Cobalt produced totalled 521 tonnes for Q3 2012. During Q3 YTD 2012,
1,591 tonnes were produced.
Copper and cobalt production continued to be adversely affected by
recurrent general power disruptions in the DRC. During Q3 2012,
approximately 516 production hours were lost across the operation due
to power disruptions. This amounts to approximately 21 days of lost
production and includes the time from the power disruption until
equipment is operating at pre power disruption capacity. The lost
production hours across the operation during Q3 YTD 2012 amounted to
approximately 1,187 hours or 49 days. The lost production time excludes
the adverse impact on equipment availability due to the unplanned shut
downs and subsequent start ups of the equipment due to the power
disruptions. The new convertor as part of the World Bank power project
and the new synchronous condenser as part of the refurbishment of the
DRC's power generating, transmission and distribution systems are
expected to be commissioned during the fourth quarter of 2012.
Commissioning has been affected by the transport industry strike in
South Africa during September and October 2012 as well as the strike at
the Kasumbalesa border post during October 2012.
Post commissioning, the Company expects power disruptions to decrease.
In the medium to long term, improvements in infrastructure as a result
of the Power Project are expected to improve the reliability and
stability of electricity supplies generally.
Total sales for Q3 2012, were $133.6 million and for Q3 YTD 2012 were
The sales value of oxide concentrate available to be shipped but not
invoiced as at September 30, 2012, amounted to approximately $124.7
million and the sales value of copper nodules available to be shipped
as at September 30, 2012, amounted to approximately $98.7 million. The
Company commenced exporting copper nodules during Q3 2012.
For Q3 2012, the Company generated a net income attributable to
shareholders of $14.8 million, and for Q3 YTD 2012, the Company
generated a net income of $31.6 million.
Cash and cash equivalents as at September 30, 2012, amounted to $33.8
Due primarily to the strikes in South Africa and at the Kasumbalesa
border post, the Company expects the first copper cathode production
through the new Solvent Extraction "SX" plants and converted copper
Electro-Winning "EW" facility during the fourth quarter of 2012.
Mechanical completion of the Updated Phase 4 Expansion is expected in
the third quarter of 2013.
The first phase of the feasibility study for the potential T17
underground mine is expected to be completed during the first quarter
of 2013. This will potentially allow for the exploitation of additional
T17 mineral resources below the bottom of the current open pit through
underground mining techniques.
Katanga also announces that Mr. Cornelis Erasmus, non-executive Director
and Member of the Audit Committee of the Company, has resigned to
pursue other opportunities.
Mr. Liam Gallagher has joined Katanga as non-executive Director and
Member of the Audit Committee. Mr. Gallagher is currently employed with
Glencore International AG and also serves as Director of Mutanda Mining
Sprl. He holds an Honours degree in Commerce from Stellenbosch
University and is qualified as a Chartered Accountant of South Africa.
Mr. Gallagher was appointed for a term expiring at the next annual
general meeting of shareholders of the Company in 2013.
This Press Release was prepared under the supervision of Tim Henderson,
Technical Consultant, Katanga and a "qualified person" as such term is
defined in NI 43-101. Mr. Henderson has reviewed and approved the
contents of this press release.
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.
Forward Looking Statements
This press release may contain forward-looking statements, including,
but not limited to, the value of oxide concentrate available to be
shipped but not invoiced, the sales value of copper nodules available
to be shipped, the increase in copper and cobalt production levels, the
first copper cathode production through the new SX plants, the
mechanical completion of the Updated Phase IV expansion, the
commencement of the export of copper nodules, the anticipated decrease
in power disruption relating to the upgrade in power infrastructure and
the completion of the feasibility study for the potential T17
underground mine. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or describes a "goal", or variation 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.
Forward-looking statements involve known and unknown risks, future
events, conditions, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different
from any future results, prediction, projection, forecast, performance
or achievements expressed or implied by the forward-looking statements.
Such factors include, among others, the actual results of current
exploration activities; actual results and interpretation of current
reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of
copper and cobalt; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the
completion of exploration, development or construction activities, as
well as those factors disclosed in the Company's current annual
information form and other publicly filed documents. Although Katanga
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking 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
The Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information,
future events, or otherwise, except in accordance with applicable
SOURCE: Katanga Mining Limited