ENP Newswire -
Release date- 10072014 -
Group revenue up 30.5% to
Group EBITDA up 40.4% to
Group net profit for the year of
Corporate costs cut from 7.8% to 4.5% of revenue.
Group net cash from operating activities up 60.5% to
Exploration spend decreased by 65.4% to
Freda Rebecca gold sales of 58,704 ounces for the year (2013: 65,350 ounces)
Freda Rebecca cash costs (C1)
Freda Rebecca gold recoveries up to 82% (2013: 81%)
BNC first concentrate shipped
BNC production resumed profitably with nickel sales of 7,129 tonnes for the year
BNC cash costs (C1)
Chinese partner initiated Katanga copper buy-in by funding
Post period highlights
Freda Rebecca investigates viability of gold recovery from tailings and reviews resources.
Klipspringer investigates viability of underground mining
Our principal success came with the resumption of sales of nickel in concentrates by BNC's Trojan nickel mine in terms of an off-take agreement with
Nickel prices have improved in response to
At the start of the past financial year we were contemplating having to ask shareholders for additional funding, but we took an early decision to change direction. The improved cash flow from BNC enabled us to reverse
Since the financial year's end we have embarked on the project to restart BNC's smelter (subject to securing funding) with the aim of starting production of nickel alloy in the first quarter of calendar 2015. Not only will this take the company up the value chain as better prices will more than offset the smelter's operating costs, but we will have the benefit of the significantly lower cost of transporting nickel metal rather than concentrate to our export harbour.
Our strategy now is to reward shareholders for their unstinting financial support as we continue to build Mwana into a diversified, multi-national mining company. Our financial strategy is to be self financing or, where appropriate, to take in other partners or funding for specific projects. The success of this strategy has been shown in our Katangese copper partnership with the Chinese copper products manufacturer,
The Freda Rebecca gold mine suffered some production set-backs in the past financial year temporarily lower mining grades and production interruptions with the failure of a leach tank. The problems had been resolved by the end of the financial year. We are now in a position to evaluate the viability of adding gold production from the reprocessing of old residues.
The current financial year is confidently expected to result in Mwana's further financial strengthening and in that of our ability to advance the development of new projects. And, as the share price has advanced since the start of 2014, I am confident that further improvements will flow from our proving our ability to develop and operate our assets profitably.'
The Freda Rebecca gold mine in
In the DRC,
Copper in the
The joint venture Zani-Kodo project has a gold mineral resource of 2.97moz. Klipspringer diamond mine is Mwana's South African interest. Mwana holds a 69.77% interest in Klipspringer, which is currently on care and maintenance but involved in a tailings retreatment project and investigating the viability of underground mining.
For a copy of the full results please visit the company's website: www.mwanaafrica.com
Tel: +263 (0) 772 164 486
Mob: +44 (0) 787 675 4360
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