Mer 10 Aoû 2011 08:44
First Quantum announces operational and unaudited financial
Wednesday 10 Aug, 2011First Quantum Minerals Limited announced its results for the 3 and 6 months ended June 30th 2011.
The Company's results are now being prepared in accordance with International Financial Reporting Standards. The changes in accounting policies have been applied consistently to the comparative period unless otherwise noted.
Q2 Highlights;
1. 51% increase in gross profit as the 41% higher net realized copper price more than offset the lower sales volume.
2. 3% decrease in copper production from the Kansanshi and Guelb Moghrein mines due to maintenance-related downtime at both operations and the processing of low grade, high acid consuming oxide ore at Kansanshi.
3. Continued strong cash position net of significant development capital investment and significant payments of taxes to the Zambia Revenue Authority.
Development projects advancing on schedule;
1. Pre commissioning activities at the Ravensthorpe project commenced in Q2 2011. This will be followed by an estimated 6 months of commissioning and ramp up.
2. The Kevitsa project remains on schedule to achieve commercial production in mid 2012.
3. At the Trident project, mining licences were granted in April 2011 covering the entire project and the Environmental Impact Assessment was approved and a land use agreement was agreed to in July for the development of the Sentinel deposit. Orders have been placed for some long lead mills and mill drives.
4. Site works have commenced on the expansion of the oxide and leach processing circuit at Kansanshi and delineation and near mine exploration has been expanded with 16 drill rigs.
5. Exploration activities continue at a high rate at the Company's other projects in Zambia, Peru, Finland and Mauritania.
6. On July 20th 2011, the Company issued 125,679 common shares in connection with a listing of depositary receipts by the Company on the Lusaka Stock Exchange in Zambia.
Operational outlook for 2011;
1. Production of 280,000 tonnes of copper and 190,000 ounces of gold. A reduced outlook for the year reflects lower production to date as well as lower expected sulphide ore grades in the short term at Kansanshi lower acid availability in Zambia and plans for continued plant enhancement works at Guelb Moghrein.
2. Average C1 cost of USD 1.25 per pound of copper. An increase in the forecasted C1 cost is a result of lower production, inflated input costs and increased waste stripping at Kansanshi as required for the planned plant expansions.
3. Nickel production to commence with the commissioning of the Ravensthorpe project in the second half of the year