Johannesburg, South Africa — MININGREVIEW.COM — 07 September 2010 – South African-based and JSE-listed Metorex Limited “’ a mid-tier mining group well-known as a base metal operator in Zambia and the Democratic Republic of Congo (DRC) “’ has effectively restored its balance sheet, and these much improved results bode well for the company’s future.
Releasing the company’s interim results for the year ended 30 June 2010, CEO Terence Goodlace added that operationally Chibuluma in Zambia had been the star performer for the Group with a 7.5% increase in copper produced for the year. Ruashi in the DRC had continued its positive trend with total copper production having increased by 165% and cobalt production by 324% over the previous 12 months.
“The disposal of Consolidated Murchison has now been concluded and the Group’s re-positioning as a copper/cobalt mining company with producing and development assets in the DRC and Zambia is now complete,” he added. “Our focus has transitioned from one of survival to that of sustainable growth, and we are actively advancing the bankable feasibility studies for the Kinsenda and Lubembe deposits in the DRC.”
Metorex said the Group’s total copper production had risen by 60% to 50 0151 tonnes compared with the previous year. Cobalt output had more than trebled to 3 102 tonnes, boosted by a ramp- up at its major Ruashi mine in the DRC. The company had posted a marginal rise in full-year profit and forecast higher production of copper and cobalt this financial year.
The results went on to reveal that cash mining profit was up 678% to R866 million, despite the R400 million loss on Ruashi hedges which had now expired. The balance sheet had been restored with debt down by 50% and cash on hand at R521 million, and growth projects being advanced with a high degree of technical diligence.