Anvil Mining Limited announced that the ramp up of the Kinsevere Stage II Solvent Extraction Electrowinning plant is continuing with design capacity of 60,000 tonnes of copper cathode per year expected to be achieved before year end 2011.
For the three months ended September 30th 2011, production of copper cathode totalled 8,718 tonnes while for the nine months ended September 30th 2011, copper production totalled 18,033 tonnes comprised of 12,094 tonnes of copper cathode and 5,939 tonnes of copper in concentrate from the Kinsevere Stage I Heavy Media Separation plant which was placed on care and maintenance in the previous quarter.
For the 3 months ended September 30th 2011, the Company generated revenues of USD 66.4 million and recorded an operating profit of USD 32.4 million and net profit after tax for the Q3 of USD 2.9 million or USD 0.02 per share. For the nine months ended September 30th 2011, the Company generated revenues of USD 94.3 million comprised of USD 65.4 million from copper cathode sales and USD 28.9 million from copper concentrate sales and recorded net profit of USD 39.6 million or USD 0.25 per share.
On August 1st 2011, in accordance with accounting standards, the Group concluded that the SX-EW plant was operating as intended and thus commenced recording revenue, costs and depreciation of the SX EW plant within the income statement. The revenue and costs related to the production of copper cathode during the testing and commissioning phase were previously capitalized in accordance with accounting standards.
The Company's consolidated financial statements for the 3 and 9 months ended September 30, 2011 and 2010 restated comparatives have been prepared in accordance with IFRS.
Highlights for the q3;
1. Copper revenues of USD 66.4 million.
2. Production of 8,718 tonnes of copper cathode.
3. Operating profit of USD 32.4 million compared to USD 4.2 million for the Q3 of 2010.
4. Net profit of USD 2.9 million compared to net profit of USD 1.0 million for the Q3 of 2010.
5. Average realized copper price of USD 4.04 per pound compared to USD 3.28 per pound for the Q3 of 2010.
6. Commencement in June of drilling program at the Kinsevere sulfide deposit.
7. Commencement in September of an in fill drilling program at Mutoshi with two diamond drill rigs in operation.
Mr Darryll Castle president and CEO of Anvil said that "Ramp up of the SX EW continued during the quarter, albeit at a slower than anticipated rate, due to a number of issues, the most significant of which related to operation of rectifiers and transformers and current efficiency in the tankhouse. However, good progress has been made in resolving these issues and in October, copper cathode production totalled 4,022 tonnes, representing 80% of design capacity. We are confident that the design capacity of 60,000 tonnes of copper cathode per year will be achieved before year-end. Owing to lower than anticipated production in the September quarter, we have now revised our 2011 forecast copper production to 30,000 tonnes to 31,000 tonnes of copper from previous 2011 copper production guidance of 36,000 tonnes to 38,000 tonnes."
