News of our neighbour.........Anvil registers record production, revenue from its DRC operations
Anvil Mining has all the reasons to weather problems it has with the Democratic Republic of Congo in relation to its mining properties in the country. The company has registered record production and revenue results for the Dikulushi, Kinsevere and Kalu mines.
Author: Frank Jomo
Posted: Wednesday , 27 Feb 2008
BLANTYRE -
Toronto and Australian Stock Exchange-listed Anvil Mining Limited (AVM) (TSX-C$14.020, ASX-A$15.00, a share) will have all the reasons to respond to the government of the Democratic Republic of Congo today its position on its mining portfolio in this resource rich country following impressive results recorded at its copper and silver mining properties of Dikulushi, Kinsevere and Kulu.
The company's 2007 full year results indicate that Anvil has recorded annual production of 47, 633 tonnes of copper and 2.5 million ounces of silver in concentrate, which translated into revenues of
US$263.2 million, a 50 percent increase from the US$175.4 million it registered in 2006.
The company also registered a record operating cash flow before working capital movements of US$166.3 million compared to US$102.0 million it registered in 2006.
Anvil President and Chief Executive Officer Bill Turner attributes the strong financial performance to continued above-target operational performance at the Dikulushi mine and the high prices copper and silver fetched on the international market.
"2007 was another exceptional year with annual records set in production, sales of our copper and silver concentrates, operating profit, net income and operating cash flows before working capital movements," said Turner in the statement. "Our net income reached US$117.2 million or US$1.81 per share, the highest level in the history of the company."
Now the miner has a production target of 55,000 tonnes of copper and 1.3 million ounces of silver in
2008 before it doubles production in 2010 as all its three mines come into production. However this will depend on the outcome of negotiations Anvil has with the Minister of Mines who is reviewing its portfolio in the country.
The DRC government on February 16 wrote to Anvil recommending that the contract for Dikulushi, where the miner holds 90 percent equity be transferred to the new Mining Code. In addition, Anvil was informed that it will be paying higher royalties and bonuses based on metal prices for copper mined from Kinsevere and Kalu. It was given February 27(today) as the deadline to respond.
Turner says Anvil will submit a response to the letters received from the Minister of Mines in respect of all three of its properties within the timeframe suggested by the government while it is seeking
further discussions with the Minister of Mines.