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.