29/01/2010 - 15:18

Kagara prepares to float gold spin-off

29/01/2010 - 15:18

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Miner Kagara expects to launch the initial public offer of its gold spin-out vehicle in April as operations returned to profitability in the December quarter on the back of a higher metal price environment.

Miner Kagara expects to launch the initial public offer of its gold spin-out vehicle in April as operations returned to profitability in the December quarter on the back of a higher metal price environment.

In its quarterly report released today, Kagara said the Mungana Goldmines IPO will be ready for launch soon, with Coffey Mining completing independent estimates for the Red Dome and Mungana gold resources.

Kagara first flagged the IPO early last year and had planned to launch the offer in July.

Meantime, Kagara expects margins from its mining operations to further improve in the March quarter following a positive December quarter.

At the company's Mt Garnet copper plant in Queensland, the cash operating margin jumped from US97 cents per pound of payable copper in the September quarter to $US1.48/lb in the three months to the end of December.

The plant experienced a 59 per cent quarter-on-quarter increase in production with 3,806 tonnes of copper produced.

The boost followed a restructure of Kagara's copper business and an upgrade of the plant.

During the quarter, Kagara also produced first nickel from its Lounge Lizard deposit after it struck an access deal with Western Areas.

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