12/08/2008 - 17:30

Anvil's earnings drop 76% in June qtr

12/08/2008 - 17:30

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Operational issues have impacted Osborne Park-based Anvil Mining Ltd's net income which plummeted 76 per cent to $10 million over the June quarter.

Operational issues have impacted Osborne Park-based Anvil Mining Ltd's net income which plummeted 76 per cent to $10 million over the June quarter.

Anvil reported today that net income over the three months ending June 30 2008 was $US8.5 million, down from the last year's corresponding quarter of $US35.4 million ($A40.4 million).

Basic earnings per share dropped from US58 cents to 12c.

Anvil chief executive Bill Turner said the mining method at its Dikulushi mine in the Democratic Republic of Congo was being changed to improve recovery rates.

Meanwhile mining at the Mutoshi mine in the DRC has been suspended due to the unsuitable processing plant.

"This decision is not expected to impact 2008 forecast production as there is sufficient stockpiled ore to feed the HMS (heavy media separation) processing plant through to the end of the year and achieve 9000 tonnes of copper production for 2008," Mr Turner said.

Mr Turner said the expansion plans for stage two of the Kinsevere copper project was continuing as expected.

Revenue from sales were down nine per cent to $US59.8 million over the quarter while cash flow from operating activities, before working capital movements, were down 43 per cent to $US24.6 million.

Despite the operational issues, Anvil has maintained its production guidance for 2008 of 47,000t of copper and 950,000 ounces of silver.

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