Search Results for "Katanga"

Katanga Mining Announces First Quarter Financial Results for 2016

Katanga Mining (TSX:KAT) has announced its financial results for the first quarter of 2016.

As quoted in the press release:

Financial

Profitability during Q1 2016, when compared to Q4 2015 and Q1 2015, was affected by:
Quality discounts of $25.4 million on finalisation of outstanding 2015 sales resulting in negative sales amounts;
Reduced operating expenditures due to the suspension of copper and cobalt processing;
Restructuring costs totalling $3.1 million relating to contractor demobilisations (Q4 2015 – $12.3 million);
The cessation of borrowing cost capitalisation during Q1 2015 due to the completion of the Phase 5 Expansion Project, resulting in Amended Loan Facility interest expense of $74.2 million for Q1 2016 (Q4 2015 – $73.2million, Q1 2015 – $23.6 million); and
Income tax expense of $0.1 million in Q1 2016 (Q4 2015 – $0.1 million recovery; Q1 2015 – $57.4 million recovery) due to the cessation of deferred tax recognition on tax losses carried forward in the DRC and incurred after Q2 2015. Such recognition will be reassessed on commissioning of the WOL Project.
Cash flows from operating activities decreased in Q1 2016, when compared to Q1 2015, due to the suspension of copper and cobalt processing at the end of Q3 2015 and increased working capital requirements, notably for the reduction of accounts payable following the suspension of copper and cobalt processing. These cash outflows were funded by Glencore.

Click here for the full press release.


Katanga Mining Announces First Quarter 2016 Production Results

Katanga Mining (TSX:KAT) announced this week its first quarter 2016 production results and date for release of Q1 2016 financial results.

As quoted in the press release:

Suspension of production

  • On September 11, 2015, the Company announced the decision to suspend the processing of copper and cobalt during the construction phase of the Whole Ore Leach Project (“WOL Project”). This suspension is expected to last up to 18 months from September 2015.
  • Mining operations continued during Q1 2016 at KOV Open Pit and Mashamba East with a focus on waste mining.

Geotechnical Failure at KOV Open Pit Mine

  • On March 8, 2016, the Company announced that a geotechnical failure was experienced on the north wall of the KOV Open Pit mine. Seven persons who were believed to have been working in the vicinity of the failure were initially unaccounted for. In addition, the dewatering infrastructure in the pit was damaged.
  • Following the incident, three bodies were recovered from the pit, one of which remains to be positively identified.  The Company must now assume that any individual who was in KOV Open Pit at the time of the incident will not have survived. On March 17, 2016, search and rescue efforts moved into the recovery phase.  The Company continues to work closely with the relevant authorities and has been providing all available support for the families and friends of the affected individuals.
  • An investigation is still underway to determine the cause of the geotechnical failure and the related costs that may arise as a result of this incident, as well as any potential insurance claims.

Click here for the full press release.


Katanga’s Q4 Results Reflect Shift to Waste Mining

Katanga Mining Ltd. (TSX:KAT) released its production results for Q4, as well as 2015 as a whole, commenting that ore mined during Q4 was 85.2 percent lower than it was during the year-ago period.

The decline came as the company suspended ore mining underground and moved “towards waste mining in the open pits following the suspension of copper and cobalt processing at the end of Q3.” The suspension is expected to last up to 18 months from September 2015.

Key points for the full 2015 year are as follows:

  • Waste mined in 2015 was 23.9% higher than in 2014 due to the commissioning of new mining fleet and increased mining equipment productivities.
  • Ore mined in 2015 was 18.9% lower than in 2014 due to the suspension of ore mining underground and the shift in focus towards waste mining in the open pits following the suspension of copper and cobalt processing at the end of Q3.
  • Contained copper in ore mined in 2015 was 22.6% lower than in 2014 due to the reduced volumes of ore mined.
  • In 2015, the Company commissioned:
    • One fire detection system and fire suppression system on shaft 1 at KTO;
    • One new Caterpillar 6030 Backhoe Excavator in KOV to facilitate increased ore and waste mining capacity and improve dewatering management;
    • Two Caterpillar R2900G loaders in KTO to increase the ore and waste handling capacity;
    • One lube truck and six Atlas Copco 282 Jumbos for use underground;
    • Two Caterpillar D11 dozers, one Caterpillar 834K dozer and one Caterpillar 24M grader to optimize mined waste management;
    • Five new Caterpillar 793D haul trucks operating in KOV to increase ore and waste mining capacity; and
    • One Caterpillar AD45B haul truck operating in KTO to facilitate increased ore and waste mining capacity.

The company also released its ore reserve and mineral resource estimates as of the end of 2015.

Click here to read the full Katanga Mining Ltd. (TSX:KAT) press release.


Katanga Reports Lower Copper and Higher Cobalt Output for Q3

Katanga Mining Ltd. (TSX:KAT) released its financial results for the third quarter of 2015, commenting that it recorded a net loss of $188,193,00, up from a net profit of $38,642,000 in the year-ago period.

Profitability was affected by the following factors:

  • The suspension of production, due to which a one-off $24.0 million restructuring expense consisting of employee redundancy and supplier contract settlement costs was booked;
  • Movements in the copper and cobalt market price, resulting in a negative sales price variances of $47.1 million when compared to Q2 2015 and $98.2 million when compared to Q3 2014;
  • A $25.7 million write-down of inventory to net realizable value driven by the copper price decline ($9.6 million lower than Q2 2015 and $25.7 million higher than Q3 2014);
  • Costs being higher due to increased processing costs at KTC and Luilu which were driven by higher consumption of reagents and increased depreciation as a result of the enlarged asset base;
  • The cessation of borrowing cost capitalisation during Q1 2015 due to the completion of the Phase 5 Expansion Project, resulting in Amended Loan Facility interest expense of $72.4 million for Q3 2015 (Q2 2015 – $70.5 million; Q3 2014 – nil); and
  • Income tax expense of $0.2 million in Q3 2015 (Q2 2015 – $53.9 million recovery; Q3 2014 – $26.7 million recovery) due to the cessation of deferred tax recognition on tax losses carried forward in the DRC and incurred after Q2 2015.

Production highlights are as follows:

  • Due to plant shutdown, ore milled at KTC during Q3 2015 decreased by 5% when compared to Q3 2014 and by 28% when compared to Q2 2015.
  • Finished copper metal and concentrate produced of 36,444 tonnes represented a decrease of 14% over Q3 2014 and of 9% over Q2 2015. This was driven by the lower grades and volume of concentrate feed to Luilu.
  • Cobalt metal produced totalled a record 1,105 tonnes for Q3 2015, a 23% increase from Q3 2014 and a 17% increase from Q2 2015, due to the increased grades fed together with improved recoveries thereon.
  • In Q3 2015, the Company commissioned the following assets at KTC and Luilu in order to improve throughputs and recoveries:
    • Upgrade of Wemco cells and reagent addition system (Tank Cells) at KTC to improve oxide concentrate recoveries and grades; and
    • Upgrade of Spray Bars (Tank Cells) at KTC to improve recoveries by breaking the froth and increasing the velocity of concentrate throughput to transfer tank.
  • The assets listed above will directly benefit the WOL process when it is commissioned in H1 2017.

Click here to read the full Katanga Mining Ltd. (TSX:KAT) press release.


Glencore Suspends Cobalt Output From Katanga

As part of Glencore’s (LSE:GLEN) recently announced measures to cut costs amidst the current commodity price rout, Metalbulletin (subscription required) noted that the company has suspended cobalt production as a consequence of putting production on hold at its copper mine in the Democratic Republic of Congo.

As quoted in the publication:

Glencore announced on Monday that it is immediately suspending copper production at Mopani Copper Mines in Zambia and Katanga Mining in the Democratic Republic of Congo, with output of by-product cobalt also stopping at the latter. The move comes at a crucial time in the cobalt market, where low-grade metal prices assessed by Metal Bulletin slid to $12.20-12.85 per lb on Friday September 4 from $12.50-13.40 in the previous session, the lowest level since April, when prices dropped to under $12 per lb.

Click here to read the article from Metalbulletin.


Katanga Annual Results Show 34 Percent Sales Increase for 2014

Katanga Mining Limited (TSX:KAT) announced its fourth quarter and annual financial results for 2014, which show total sales for Q4 2014 were $262.9 million and total annual sales were $1,078.5 million, a 34% increase over 2013.

As quoted in the press release, some of the highlights include:

Financial

  • Cash inflows from operating activities (excluding customer prepayments funded through the Amended Loan Facilities – as defined below) were $183.3 million higher during the three months ended December 31, 2014 (“Q4 2014″) and$418.1 million higher in 2014, when compared to the three months ended December 31, 2013 (“Q4 2013″) and 2013. Refer to Non-IFRS measures in Katanga’s 2014 Management’s Discussion and Analysis.
  • On November 26, 2014, the Company announced the execution of extended and increased loan facilities (the “Amended Loan Facilities”) from an affiliate of Glencore plc (“Glencore”). The terms of the Amended Loan Facilities remain consistent with those previously disclosed.
  • Total sales for Q4 2014 were $262.9 million, a 30% increase over Q4 2013. Total sales for 2014 were $1,078.5 million, a 34% increase over 2013.

Mining

  • During Q4 2014, the Company mined 1,863,967 tonnes of ore, an 18% increase over Q4 2013, at an average grade of 4.22% resulting in contained copper in ore mined of 78,606 tonnes. During the year ended December 31, 2014, the Company mined a record 7,433,838 tonnes of ore, a 19% increase over the year ended December 31, 2013, at a grade of 3.91% resulting in contained copper in ore mined of 290,741 tonnes.

Click here to read the full Katanga Mining Limited (TSX:KAT) press release.


Katanga Reports Lower Q2 Cobalt Metal Production

Katanga Mining Ltd. (TSX:KAT), which operates a large-scale copper-cobalt project in the Democratic Republic of the Congo, announced its Q2 financial results, commenting that it mined 2,014,017 tonnes of ore, a new record. It also achieved record copper in metal and concentrate production of 41,026 tonnes, a 30-percent increase from Q2 2013, and achieved a 5-percent rise in its realized copper price.

Unfortunately, the company produced just 523 tonnes of cobalt metal, a 25-percent decrease from the year-ago quarter, and achieved a realized cobalt price of $11.84 per pound, down 13 percent from Q2 2013.

The company’s outlook is as follows:

  • Operational ramp up is expected to continue with: the expected completion of the Phase 5 project in Q4 2014; identified operational improvements leading to higher metal recovery rates; and additional steps to mitigate ongoing power issues, all leading to further reductions in C1 costs as a result of increased volume.
  • KOV fleet dispatch tracking system is planned to be deployed in Q3 2014, and is expected to increase control over tracking and dispatch of open pit mobile equipment.
  • During H2 2014, KTC plans to install a slurry analyzer which is expected to assist in rapid determinations of the mineral composition of the slurry before floatation, allowing a more precise and optimal reagent mix.
  • During Q3 2014, the installation of a 10 megawatt diesel co-generation plant is expected to result in increased back-up generator capacity and decreased electricity availability issues.
  • During H2 2014, the construction of two heap leach pads is expected to add further capacity for the treatment of low grade material.
  • During H2 2014, additional pregnant leach solution and raffinate ponds are to be added to the current process flow at Luilu, in order to split the ponds into high and low grade solution which is expected to drive higher recoveries and lower reagent consumption in the leach and neutralisation phase.

Click here to read the full Katanga Mining Ltd. (TSX:KAT) press release.


Katanga Mining’s DRC Production Drops Due to Power Outages

Mining Weekly reported that Katanga Mining’s DRC production has been seriously hampered by a series of power outages.

As quoted in the market report:

Despite the power availability issues, copper produced in metal and concentrate for 2012 totalled a record 92 963 t, an increase of 2% when compared with 2011. Cobalt production totalled 2 129 t in the year, a decrease of 13% compared with 2011.

To view the whole Mining Weekly report, click here.


Katanga Drawing Down $515.5 Million Loan to Fund DRC Mine Expansion

Mining Weekly reported that Katanga Mining is drawing down $515.5 million from its senior secured facility backed by Glencore to fund part of the Phase four expansion of Katanga’s copper/cobalt mine in the DRC.

As quoted in the market report:

Phase 4 of the company’s expansion plans include an upgrade of the power infrastructure, which is expected to decrease frequent power disruptions at the complex; the start of mining at the extension to the T17 openpit and the completion of the feasibility study for a potential underground mine at the T17 deposit.

To view the whole Mining Weekly report, click here.


Katanga Announces Financial Results for Q1 2012

Katanga Mining Limited (TSX:KAT) announced its first quarter 2012 financial report.

As quoted in the press release:

  • Cobalt produced totalled 593 tonnes for Q1 2012.
  • Copper and cobalt production were adversely affected due to general power disruptions in the DRC. Improvements in infrastructure as a result of the Power Project are expected to improve the reliability and stability of electricity supplies generally.

Click here for the Katanga Mining Limited (TSX:KAT) press release.


Katanga Secures Power Supply

Katanga Mining Ltd. (TSX:KAT) announced that as a result of an agreement with engineering contractors and the Democratic Republic of the Congo’s (DRC) national electricity company, it has secured enough power to meet the needs of its copper-cobalt mine in the DRC.

As quoted in the press release:

The Company has concluded agreements with Société Nationale d’Électricité (“SNEL“), the DRC’s national electricity company, and engineering contractors to refurbish DRC power generating, transmission and distribution systems (the “Power Project“) that should progressively increase power available to Katanga’s mine complex and the nearby Mutanda and Kansuki projects owned by companies affiliated with Katanga’s parent company, Glencore International, to 450 MW by the end of 2015.

Click here to read the full Katanga Mining Ltd. (TSX:KAT) press release.

 


Katanga Announces Results for 2011 Fiscal Year End

Katanga Mining Limited (TSX:KAT) announced year-end financial results for 2011.

As quoted in the press release:

Total sales for 2011, were $574.4 million an increase of 7% compared to 2010. The sales figure has been adversely affected by an unrealized mark to market adjustments as at December 31, 2011, of $7.0 million.

Click here for the Katanga Mining Limited (TSX:KAT) press release.


Glencore Poised to Fully Acquire Congolese Copper, Cobalt Miner Katanga, Analysts Say

By Karan Kumar – Exclusive to Cobalt Investing News

Glencore Merger and Acquisitions Copper Cobalt Katanga

Analysts say that Swiss-based, commodities giant Glencore International Plc (LSE:GLEN), is poised to acquire the remaining 25.2 percent of copper and cobalt miner Katanga Mining Ltd. (TSX:KAT), of which it already owns 74.8 percent. The move will allow Glencore to take full control of the Congolese copper and cobalt producer to take advantage of falling prices.

“Cleaning up the minorities at Katanga is a possibility and would have strategic merit,” Patrick Jones, an analyst at Nomura, who covers the metals and mining sector, told Cobalt Investing News. “Glencore cleaned up the minorities at Minara/Murrin Murrin (a nickel/cobalt mining and refining project in Western Australia), so it is definitely possible.”

The UK Guardian reported recently that Glencore could bid up to 400 million pounds to take full control of Katanga. Katanga’s mines are located in the copper belt within the Democratic Republic of Congo. The Guardian reported that a leading Glencore shareholder said Katanga, which is forecast to produce 300,000 tonnes of copper by 2015, is “just the sort of asset that Ivan Glasenberg (Glencore’s’ chief executive) would like to take full ownership of. The potential is enormous even though there is political risk operating in DRC.”

A spokesman for Glencore told Cobalt Investing News: “Our position is that we don’t comment on speculation.” For the first nine months of 2011, Katanga’s copper in ore mined was 157,658 tonnes, a 96 percent increase from the year-ago period. In its third quarter earnings report, Katanga said it sees the increase of copper production to 270,000 tonnes per annum of LME Grade A copper and thereafter the expansion of copper production to 310,000 tonnes per annum which the company intends to proceed with utilizing anticipated cash flows from operating activities. However, a timeline for the goal of 310,000 tonnes per year was not stated in the earnings statement.

In November 2011, Katanga received a commitment from Glencore for two loan facilities of up to $635.5 million. Part of the money will be used to finance Katanga’s plans to beef up copper and cobalt production. At the end of September 2011, Katanga’s cash and cash equivalents stood at $57 million.

Last August Glencore launched a $280 million bid to acquire full control of Minara (ASX:MRE), of which it already held more than 70 percent. In the summer of 2011, Glencore was also forced to play down rumors that it was preparing a bid of 1.2 billion pounds for Kazakh-controlled ENRC. Also, in late August of last year, Glencore announced a bid for South Africa’s Optimum Coal that valued the company at 750 million pounds.

Glencore’s London-listing in May of 2011 was seen as the first step for the company starting its acquisition strategy. Reuters reported that the company had made no secret of the fact that “acquisition firepower is one of the main motivations behind its decision to go public after 37 years and it has no plans to abandon the opportunistic dealmaking that has made the company’s fortunes.” Speculation about Glencore’s plans to acquire Katanga, or Xstrata (LSE:XTA), a Swiss miner in which it already owns 34 percent, is making headlines again as Glencore becomes free to issue new shares following its float on the London Stock Exchange in May.

 

Securities Disclosure: I, Karan Kumar, hold no direct interest in the companies mentioned in this article.


Katanga Reports Redemption of Notes is Now Unconditional

Katanga Mining Limited (TSX:KAT) announced that its loan facilities are now executed and conditions for its redemption of notes are removed.

As quoted in the press release:

The second of the Facilities is for up to US$515.5 million pursuant to a senior secured credit facility agreement between, among others, a Katanga subsidiary, as borrower, Katanga and other Katanga subsidiaries as guarantors, and the Glencore Group, as lender.

Click here for the Katanga Mining Limited (TSX:KAT) press release.


Katanga Announces Q3 2011 Results, Approval of Updated Phase 4 Expansion of its Copper Cobalt Project

Katanga Mining Limited (TSX:KAT) announced its third quarter results as well as the expansion approval for its copper-cobalt project.

As quoted in the press release:

Consistent with Katanga’s completion of the Phase 3 expansion of its project described in the Technical Report, Katanga commissioned a front end engineering and early works report. The Early Works Report identified…Katanga reaching higher copper and cobalt production levels sooner than the timelines described in the Technical Report.

Click here for the Katanga Mining Limited (TSX:KAT) press release.