Anvil Q2 Hit by Lower Production and Sales

13 August 2009 (Last Updated August 13th, 2009 18:30)

Copper explorer Anvil Mining reported a second quarter net loss of $11.3m for the second quarter ended 30 June 2009 compared to a net income of $8.5m for the corresponding period the previous year. The company blamed lower copper production and sales as well as lower prices and one-off

Copper explorer Anvil Mining reported a second quarter net loss of $11.3m for the second quarter ended 30 June 2009 compared to a net income of $8.5m for the corresponding period the previous year.

The company blamed lower copper production and sales as well as lower prices and one-off charges totalling $6.1m.

Production was hit by the halt in mining and processing operations at the Dikulushi and Mutoshi mines resulting in a second quarter output of 5,372t, Anvil said.

Net sales dropped to $7.7m from $59.8m for the corresponding quarter in 2008, the company said.

Operating cash costs increased to $484 a tonne of concentrate from $278 a tonne for the three-month period last year.

The Kinsevere HMS plant, which resumed operations in March 2009, is on target to produce 8,900t of copper through to the third quarter of 2009 and will be further developed after a $200m debt and equity arrangement was made with Trafigura, Anvil CEO Bill Turner said.

“With about 50% of the Stage II capital cost already incurred, this financing package will enable us to commence commissioning of Kinsevere Stage II in late 2010 and achieve commercial production in 2011,” Turner said.

The plant is expected to produce about 60,000t of Grade A copper cathode annually.