Katanga Mining Posts Q3 2016 Financial Results

Katanga Mining (TSX:KAT) announced its financial results for the third quarter of 2016. Highlights include: Cash outflows from operating activities decreased in Q3 2016 YTD, and a higher reduction of payables during Q3 2015 YTD.
As quoted in the press release:

Financial

• Profitability during Q3 2016 YTD, when compared to Q3 2015 YTD, was affected by:
  • Quality discounts of $27.0 million on finalization of outstanding 2015 sales;
  • Reduced operating expenditures due to the suspension of copper and cobalt processing;
  • Lower restructuring costs relating to contractor demobilisations and employee redundancy costs, which totalled $3.1 million in Q3 2016 YTD, compared to $24.0 million in Q3 2015 YTD;
  • 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 $227.0 million for Q3 2016 YTD (Q3 2015 YTD – $166.6 million); and
  • Income tax expense of $5.4 million in Q3 2016 YTD relating to 2014 and 2015 corporate income taxes (Q3 2015 YTD – $111.1 million recovery). Deferred tax recognition on tax losses carried forward in the DRC ceased in Q2 2015. Such recognition will be reassessed on commissioning of the WOL Project.
• Cash outflows from operating activities decreased in Q3 2016 YTD, when compared to Q3 2015 YTD, due to lower working capital requirements, notably for the reduction in inventories and prepayments following the suspension of copper and cobalt processing, as well as higher reduction of payables during Q3 2015 YTD. These cash outflows were funded by Glencore.

Click here for the full press release.