HomeBase MetalsAnvil's Q1 sales and profits up

Anvil’s Q1 sales and profits up

One of Anvil’s
three main operations
in the DRC
Montreal, Canada — MININGREVIEW.COM — 12 May 2008 – Canadian and Australian-listed Anvil Mining Limited – leading copper producer in the Democratic Republic of Congo (DRC) – posted revenues from copper-silver and copper concentrate sales of US$75.3 million (R570 million), up 79% on the first quarter of 2007.

Announcing this in a news release issued here today, the company added that operating profit after depreciation and amortisation amounted to US$33.7 million (R250 million), up 26% on the first quarter of 2007. Net income of US$21.4 million (R160 million) showed a 2% rise, while cash flow from operating activities was up 35% compared to the corresponding quarter of last year.

Turning to production, the new releases added that output in the first quarter of 2008 had amounted to 12 027 tonnes of copper and 482 655 oz of silver contained in concentrates.

Anvil is commencing a review of underground mining approach at its Dikulushi project to maximise ore extraction and minimise dilution, according to the news release. Meanwhile construction costs for Kinsevere Stage II have jumped by US$123 million (R930 million) from the previously released feasibility study to US $380 million R2.9 billion).

Anvil president and CEO commented, “Early production from the Kinsevere heavy media separation processing plant – our third mine in the DRC – combined with strong copper and silver prices during the first quarter, contributed to strong operating cash flows. Our efforts are currently focused on the construction and development of Kinsevere Stage II in order to be in position to deliver the first copper cathodes in the second half of 2009,” he added.

“We also have aggressive drilling programmes currently underway at Kinsevere and on the Mutoshi properties in the Kolwezi region, and the results of these programmes should be available during the third quarter of 2008,” Turner continued.

“As a result of reduced production estimates at both Dikulushi and Kulu, the company now forecasts total annual production for 2008 of approximately the same as last year at 47 000 tonnes of copper and 950 000 ounces of silver,” he concluded.