SAfrica's Metorex Q1 copper output up by 18 pct Wed Oct 14,

[bingogo]

SAfrica's Metorex Q1 copper output up by 18 pct
Wed Oct 14, 2009 10:54am EDT

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* Debt reduced by $30.3 mln to $264.4 mln

* Forecasts Q2 copper output to rise 4 pct to 12,700 T

(Adds details)

JOHANNESBURG, Oct 14 (Reuters) - South African miner Metorex (MTXJ.J) said on Wednesday copper production rose 18 percent to 12,206 tonnes for the three months to September, and forecast a 4 percent increase for the December quarter.

The company also said it reduced its debt by 220 million rand ($30.30 million) to 1.92 billion rand during the first quarter, and estimated that its Ruashi mine in the Democratic Republic of Congo (DRC) would produce 650 tonnes of cobalt in the quarter ending December 2009.

Metorex said the rise in output for the metals bode well for the company's viability.

"It is estimated that Metorex copper production will increase to 12,700 tonnes for the December 2009 quarter with Ruashi producing 6,500 tonnes, Chibuluma 4,300 tonnes and Sable (in Zambia) 1,900 tonnes," the company said.

The company's cobalt output rose by 19 percent to 678 tonnes, while fluorspar output increased by 70 percent to 45,545 dry tonnes during the same period.

Metorex said the strengthening of the rand continued to threaten the viability of its business.

Metorex said the sale of its shareholding in the Vergenoeg Mining Company for $60 million was on track and that the proceeds would be applied to the Ruashi mine project loan should the deal become unconditional.

The company said Ruashi continued to improve output while production at its Zambia unit, Chibuluma mine, also rose by 15 percent due mainly to higher delivered head grades of copper. (Reporting by Shapi Shacinda)

[bingogo]

elle va bien la petite chibuluma ! sans cesse en hausse de prod depuis plusieurs années

[Clint]

Metorex - Quarterly operational and general update
Wednesday , 14 Oct 2009

Chief Executive Officer Terence Goodlace said; "It is pleasing to report a continued increase in copper and cobalt production at Metorex operations. Both copper and cobalt production increased by more than 18 per cent for the quarter ended 30 September 2009 which bodes well for the viability of the Company. Restoring the balance sheet remains a key imperative and the Group reduced debt by R220 million during the quarter. The sale of Metorex's shareholding in Vergenoeg for US$60 million is still on track and should the deal become unconditional the proceeds will be applied to the Ruashi debt."

Table 1: Metorex quarterly production statistics :

Commentary on production and sales for the quarter ended 30 September 2009

Copper production increased 18 per cent to 12 206 tons and copper sales by 10 per cent to 11 526 tons. The tonnage milled at Ruashi increased by 31 per cent from the previous quarter to 303 786 tons at an average blended copper head grade of 2.8 per cent and a blended cobalt head grade of 0.6 per cent. Tonnage feed was mainly from the open pits. Due to planned maintenance by the power utility in the Democratic Republic of the Congo, the Ruashi mill circuit was affected by power shortages which impacted on 11 days of production in July/August 2009. Ruashi continues to improve output and it is pleasing to report that the mine produced 2 345 tons of copper in September 2009. Ruashi delivered 3 975 tons of copper (70 per cent of production) against its hedge book during the quarter. Chibuluma's copper production increased by 15 per cent due to higher delivered head grades of 3.5 per cent copper and higher underground volumes of 144 000 tons being achieved. The Sable facility increased copper production by 76 per cent to 1 943 tons of copper on the back of the increased delivery of third party ore. It is estimated that Metorex copper production will increase to 12 700 tons for the December 2009 quarter with Ruashi producing 6 500 tons, Chibuluma 4 300 tons and Sable 1 900 tons.

Cobalt production increased by 19 per cent to 678 tons. This was primarily as a result of increased cobalt production at Ruashi which produced 666 tons. For the month of September 2009, Ruashi produced 272 tons of contained cobalt. Cobalt sales increased by 268 per cent from the previous quarter as the flow of cobalt to Johannesburg improved. It is estimated that Ruashi will produce 650 tons of cobalt in the December 2009 quarter.

Fluorspar production increased by 70 per cent to 45 545 dry metric tons for the quarter. Production is determined by forecasted market demand. Fluorspar production for the December 2009 quarter is estimated at 37 500 tons, which caters for a two week shutdown in December.

Antimony and gold production from the Consolidated Murchison mine was in line with the previous quarter. Subsequent to quarter-end, the Beta shaft winder experienced an electric motor failure and this will impact negatively on production in October 2009. Antimony and gold prices are showing some strength. However the ongoing strength of the rand continues to threaten the viability of the operation. This asset is still being held for sale.

Group debt position

During the quarter ended 30 September 2009, the Group's gross debt position reduced by R220 million to R1.92 billion (at average exchange rate of R7.5/US$). Corporate short-term loans of R190 million were settled and Chibuluma serviced its first capital term loan installment of US$4 million on 30 September 2009.

The proceeds from the proposed disposal of Metorex's entire shareholding in Vergenoeg Mining Company (Proprietary) Limited for US$60 million will be applied to the Ruashi project loan, subject to the transaction becoming unconditional.

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