bt retiring early 2011, page-4

Anvil to commission SX/EW plant in Q2 2011, eyes DRC consolidation
By: Liezel Hill
Published: 16th August 2010

Source: Miningweekly.com TSX- and ASX-listed Anvil Mining now expects to start up the new solvent extraction electrowinning (SX-EW) plant at its Kinsevere copper mine in the Democratic Republic of Congo in the second quarter of next year, CEO Bill Turner said on Monday.

The company had said previously that it could commission the plant in the first three months of the year, but there were some problems with getting key materials and equipment to the site, which resulted in construction delays, Turner said on a conference call with analysts.

About $167-million has been committed out of the total $200-million required to finish the project.

Once the 60 000-t/y SX/EW plant is up and running, Anvil plans to look for "consolidation opportunities" to add more projects to its growth pipeline in the DRC, Turner said.

There the company sees a lot of "attractive" opportunities, he commented.

Anvil is currently running a heavy-media separation plant at Kinsevere and produced 18 369 t of concentrate in the second quarter.

The firm expects to meet its production guidance of 15 000 t of copper this year, Turner said.

The company had revenue from copper sales of $14,5-million and produced 4 412 t of the industrial metal during the quarter, compared with production of 5 372 t in the same period of last year.

Anvil earned $5,1-million in the second quarter, compared with an $11,3-million loss a year earlier.

Turner said that Anvil is also looking at adding a heap-leach operation to process low-grade material at Kinsevere, to provide additional feed to the SX/EW plant.

HEDGES

Anvil revealed on Monday that it has entered into hedges for all the remaining copper production between now and the end of 2010.

This will probably cover between 4 000 t and 5 000 t of copper, Turner said.

The hedging has been structured in two parts, with half of the hedged production locked in at a floor price of $3,00/lb and a cap of $3,41/lb, and the company will receive the market price when the price falls between that range.

The other 50% of anticipated production has been locked in at a price of $3,24/lb.

The company wanted to have a greater certainty regarding its cash balance as it nears the end of construction at the Kinsevere expansion.

CEO SEARCH

Anvil also announced that Turner will retire in early 2011, by which time the SX/EW plant should be undergoing full commissioning.

The board has hired an executive search firm to find his successor, and hopes to name a new CEO before the end of this year.

Shares in Anvil Mining rose 1,5% on Monday, to C$2,79 apiece by 16:00 in Toronto.

The company has another project in the DRC, Mutoshi, which was put on care and maintenance in the third quarter of 2008. A third mine, Dikulushi, was sold this year.