HomeBase MetalsKatanga copper output up, cobalt production begins

Katanga copper output up, cobalt production begins

Katanga Mining’s
Kamoto mine,
300 km north-west
of Lubumbashi,
in the DRC
London, England — MININGREVIEW.COM — 13 August 2008 – Katanga Mining Limited – headquartered in London and listed on the Toronto Stock Exchange – has shown a steady increase in second quarter copper cathode production from its operations in the Democratic Republic of Congo (DRC), and has completed its first cobalt production and exports from the central African country.

Releasing its project update and results for the quarter ended 30 June 2008, the company revealed that copper cathode production had risen by 35% to 5 314 tonnes; cobalt metal production had totalled 120 tonnes since starting on May 3; and 13 463 tonnes of concentrate had been produced.

Total net sales for the quarter reached US$48.9 million (R370 million) comprising US$19.5 million (R147 million) from copper, US$2.6 million (R20 million) from cobalt and US$28 million (R203million) from concentrate sales.

The net loss for the three months was US$9.9 million (R75 million) compared to US$14 million (R105 million) for the second quarter of 2007 – a drop of just under 30%.

Positive operating cash flow for the quarter was US$4 million (R30 million), and there was US$352.2 million (R2.65 billion) in cash on the balance sheet at June 30, 2008.

Looking ahead, the update revealed that forecast payable production for 2008 had been reduced from 33 000 tonnes of copper and 2 900 tonnes of cobalt to 27 500 tonnes of copper and 2 700 tonnes of cobalt. Forecast concentrate production had increased from 43 500 tonnes for the year to 54 000 tonnes. It added that the feasibility study for the expansion project was on track and expected to be completed near the end of third quarter of 2008.