28/02/2008 - 14:12

Lycopodium half-year profit up 12.4%

28/02/2008 - 14:12

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East Perth-based engineering consultancy Lycopodium Ltd has announced a net profit after tax of $4.8 million for the half year, on revenue of $55.9 million.

Lycopodium half-year profit up 12.4%

East Perth-based engineering consultancy Lycopodium Ltd has announced a net profit after tax of $4.8 million for the half year, on revenue of $55.9 million.

The profit result is 12.4 per cent higher and revenue 6.8 per cent higher on results for the previous corresponding period.

In light of the positive results, Lycopodium has advised forecast revenue for the 2007-08 financial year of $110.5 million with an after tax profit of $10.2 million, representing an increase of 5.6 per cent in revenue and 14 per cent in after tax profit over the previous financial year.

The directors have resolved to pay an interim dividend of 5 cents per share fully franked payable on 15 April 2008 with a record date of 1 April 2008.

 

An update on the company's projects is pasted below:

 

This year, Lycopodium is again involved with the ongoing development of the Chirano Gold Project, 100 km southwest of Kumasi, in Ghana, West Africa.

Past work has included the feasibility study, completed in 2003, as well as EPCM services in 2005/2006 for a treatment plant which can process combinations of oxide and primary ores.

This treatment plant commenced operation in October 2005 with a nameplate capacity of 2 Mtpa.

In 2007, Lycopodium carried out comminution option studies which investigated an increase in plant throughput to 3.2 Mtpa.

Lycopodium has now been awarded an EPCM contract for the plant expansion which will increase the plant throughput to 3.5 Mtpa.

KMT Project, Democratic Republic of the Congo

In November 2007, the board of Kingamyambo Musonoi Tailings SARL (KMT), 65 per cent owned by First Quantum Minerals Limited, announced its commitment to proceed with the development of the Kolwezi tailings project in the Democratic Republic of Congo (DRC). The board has approved the construction of a modern 'state of the art' tailings retreatment facility to produce copper cathode and cobalt hydroxide.

First Quantum with support from its contributing equity partners (the IDC and the IFC) will finance or procure third party debt project financing totalling up to US$593 million.

Lycopodium has been awarded an Engineering Services contract for the project to provide detailed engineering and design for the processing plant, along with project management, project controls and administration, procurement assistance and supporting First Quantum in the site construction, erection and installation work as well as pre-commissioning and systems handover.

To December 2007, engineering design, drafting and procurement activities were approximately 25 per cent complete whilst on site construction was underway for power supply, water supply, construction camp and housing platforms, plant infrastructure buildings, and plant roads.

Completion of project construction and commissioning is targeted for the 4Q2009 with commercial production in the first quarter of 2010.

The project is located just north of Kolwezi, the fourth largest city in the DRC and a well established mining town on the copper belt, in an area that has considerable existing infrastructure and has been an important mining centre for copper and cobalt for about a century.

Biodiesel Project, Victoria

The tank farm and utility facilities at Barnawartha were complete by mid 2007 and installation of the process facility was completed at the end of 2007. Construction of the European designed process unit involved the installation of a large number of process vessels within a structure approximately 16m high and the use of 4.5 km of interconnecting stainless steel pipework.

A peak workforce of 120 constructed the facility, including pipe fitters, electricians and specialists for the large amount of thermal insulation required. After commissioning, the very first batch of biodiesel produced was within the required specifications and total plant performance trials are currently in progress. The plant is largely automated and will produce 50,000 tonnes per year of diesel fuel from tallow and used cooking oil.


Brisbane Office, Queensland

The Brisbane office has seen solid growth over the past six months through focus on both market opportunities and on the recruitment of suitable professionals to support the growing client base.

Current activities involve both project implementation and studies in Queensland, PNG and Ghana for clients involved in molybdenum, nickel, copper, phosphate, zinc and gold.


Masbate Project, Philippines

The Masbate gold deposit is located near the northern tip of the island of Masbate, 360 km southeast of the Philippines capital of Manila.

Operating from its Manila office, Lycopodium Engineering, is responsible for all process engineering and detailed design associated with the project.

At December 2007, detailed engineering design was 45 per cent complete with construction on site just commencing with the first concrete being poured for the CIL tanks.

Lycopodium continues to provide EPCM services to Rio Tinto on iron ore projects and BHP Billiton on nickel projects.

The Buzwagi Project in Tanzania maintains its progress on schedule and on budget.

Additional EPCM services have been secured with Barrick at four Western Australia sites and one in PNG.

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