Copper Mine Output Falls
JOHANNESBURG- Palabora Mining (Palamin) [JSE:PAM] which operates South Africa's largest copper mine in Limpopo said yesterday it had produced less refined new copper in the first half of this year than in the previous first half last year because of a planned 35-day smelter shutdown in February and March.
This occurred as the copper price reached fresh peaks. The copper price more than doubled to R58,035 ($8,084) a metric tonne at the end of last month from R23,535 ($3,278) a year ago on a combination of rand weakness and strong global commodities prices.
The company said yesterday daily production from under ground operations averaged 29,392 metric tonnes in the June quarter despite two four-day stoppages in the production hoists.
Palamin MD Keith Marshall said in the group's latest annual report, released last month, that the target was 30,000 metric tonnes a day. Palamin hoisted a total of 2.64 million metric tonnes of ore in the June quarter at a grade of 0.70%, slightly lower than the grade in the March quarter. Total mill throughput was similar to the March quarter's.
Palabora mine produced 28,500 (29,700) metric tonnes of copper in concentrates in the first half of the year, while the Palabora smelter produced 34,000 (39,300) of new copper anodes and 36,200 (37,700) metric tonnes of new refined copper. Vermiculite production also fell, in line with plan, because of a decline in the plant feed grade, while magnetite production rose.
Palamin took steps in its past financial year to become a more sustainable operation.
Marshall said in the annual report this year, that management would address one of the major constraints to under ground production - which was the age of the underground loader fleet.
Last year Palamin had to reduce its underground reserves by about 60-million metric tonnes, or five years' production, to 142 million metric tonnes because of subsidence on the northwest wall of the open pit, which made it impossible to reach some of the ore.
Palamin also said today it expects first-half headline earnings to rise to between R312 million ($43 million) and R260 million ($36 million) from the previous period’s R209 million loss ($29 million), it said today.
The company said it expects basic earnings to rise to between R300 million ($42 million) and R250 million ($35 million) and that the difference between basic and headline earnings is due to an impairment charge of one of its plants and profit on sale of fixed assets.
Headline earnings exclude capital, non-trading and some extraordinary items and is a key measure of profit in South Africa.
Palamin is 49% owned by Rio Tinto Group [NYSE:RTP] and 28.5% by Anglo American [LSE:AAL].
This occurred as the copper price reached fresh peaks. The copper price more than doubled to R58,035 ($8,084) a metric tonne at the end of last month from R23,535 ($3,278) a year ago on a combination of rand weakness and strong global commodities prices.
The company said yesterday daily production from under ground operations averaged 29,392 metric tonnes in the June quarter despite two four-day stoppages in the production hoists.
Palamin MD Keith Marshall said in the group's latest annual report, released last month, that the target was 30,000 metric tonnes a day. Palamin hoisted a total of 2.64 million metric tonnes of ore in the June quarter at a grade of 0.70%, slightly lower than the grade in the March quarter. Total mill throughput was similar to the March quarter's.
Palabora mine produced 28,500 (29,700) metric tonnes of copper in concentrates in the first half of the year, while the Palabora smelter produced 34,000 (39,300) of new copper anodes and 36,200 (37,700) metric tonnes of new refined copper. Vermiculite production also fell, in line with plan, because of a decline in the plant feed grade, while magnetite production rose.
Palamin took steps in its past financial year to become a more sustainable operation.
Marshall said in the annual report this year, that management would address one of the major constraints to under ground production - which was the age of the underground loader fleet.
Last year Palamin had to reduce its underground reserves by about 60-million metric tonnes, or five years' production, to 142 million metric tonnes because of subsidence on the northwest wall of the open pit, which made it impossible to reach some of the ore.
Palamin also said today it expects first-half headline earnings to rise to between R312 million ($43 million) and R260 million ($36 million) from the previous period’s R209 million loss ($29 million), it said today.
The company said it expects basic earnings to rise to between R300 million ($42 million) and R250 million ($35 million) and that the difference between basic and headline earnings is due to an impairment charge of one of its plants and profit on sale of fixed assets.
Headline earnings exclude capital, non-trading and some extraordinary items and is a key measure of profit in South Africa.
Palamin is 49% owned by Rio Tinto Group [NYSE:RTP] and 28.5% by Anglo American [LSE:AAL].
Labels: annual report, mining, Palabora Mining, Phalaborwa
posted by Kruger2Canyons.com at
Thursday, July 20, 2006
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