HomeBase MetalsAnvil reduces losses substantially

Anvil reduces losses substantially

Anvil’s Kinsevere
mine in the DRC
Montreal, Canada — MININGREVIEW.COM — 12 November 2009 – Anvil Mining Limited “’ a leading copper producer in the Democratic Republic of Congo “’ has announced a net loss for the third quarter ended 30 September 2009 of US$0.2 million (R1.6 million) “’ a dramatic reduction from the net loss of US$17.3 million (R138 million) for the corresponding quarter of 2008.
Revealing this in a statement issued here, the company said that net sales for the third quarter had totalled US$18.1 million (R144 million), compared to US$42.3 million (R336 million) for the same three months in 2008.

The statement went on to say that copper production for the third quarter, and for year-to-date, had totalled 5 865 tonnes and 11 436 tonnes respectively.

It added that as at 12 November 2009, Anvil had approximately US$67.1 million (R537 million) in cash, US$16.9 million (R135 million) in available-for-sale investments and US$8.2 million (R65 million) of receivables, the majority of which it expected to realise during the fourth quarter of 2009.

During the next 12 months the company’s commitments included US$12.2 million (R97 million) entry premium payments due to Gécamines with respect to the Kinsevere and Mutoshi amended agreements, and US$17.1 million (R137 million) that related to the Kinsevere Stage II development.

The company said that its 2009 third quarter results represented a significant improvement on those of the first and second quarters, primarily as a result of the performance of the Kinsevere heavy media separation plant and the reduced impact of one-off factors associated with the cessation of operations at the its  Dikulushi, Mutoshi and Kinsevere mines during the fourth quarter of 2008.

Anvil president and CEO Bill Turner commented: ““The performance of the Kinsevere HMS plant since recommencement of operations has exceeded expectations and the company is now positioned to be able to operate with a positive cash flow up until Kinevere Stage II comes on line.”