African Copper plc has announced interim results for the six month period ended 30 September 2012.
According to the company, copper produced in concentrate during the six-month period increased by 29% compared to the same period last year, and by 31% compared to the six-month period from 1 October 2011 to 31 March 2012.
Revenues increased to $27.2 million, an increase of 18% from revenues of $23.1 million for the corresponding period last year and operating income from mining operations of $4.3 million, compared to an operating loss of $4.3 million for the corresponding period last year, driven by investments in enhancing recoveries and in reducing operating costs per ton.
African Copper says average recoveries anticipated to continue to increase as mining progresses deeper into the mines and away from more oxidic areas, but the loss for the period decreased by 44% to $9.0 million, compared to $16.0 million for the corresponding period last year.
On the other hand, ZCI Limited (“ZCI”), African Copper’s immediate parent company, has agreed to defer all principal and interest payments arising from the Company’s debt obligations to ZCI until 31 March 2013 and has provided a letter of financial support.
Jordan Soko, Interim Chief Executive Officer and director of African Copper says the company has made progress during the first half towards realising the full potential of our assets and achieving operating stability.
“This lays the groundwork for an excellent second half to the year, as we continue to put our past production challenges behind us. As always, we deeply appreciate the support of the communities that surround our properties in Botswana and the skill and commitment of our team.”
The technical information in this announcement has been reviewed and approved by David De’Ath, BSc (Hons), MSc, GDE-Mining, MIMM and MAusIMM, the Company’s Manager – Geology, of the Mowana Mine for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009.