Mining News of Note Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LoneClone who wrote (37425)	5/21/2009 10:20:38 AM
From: LoneClone	Read Replies (1) of 193660

Troubles continue at Katanga Mining Posted: May 19, 2009, 8:15 AM by Peter Koven network.nationalpost.com Another set of disappointing earnings suggests that copper miner Katanga Mining Ltd. continues to have serious operating troubles, according to BMO Capital Markets analyst David Radclyffe. Katanga, which is getting much-needed financing from shareholder Glencore International AG, reported a first-quarter loss of US$53.2-million (US26¢ a share), below Mr. Radclyffe's estimate of US23¢. And copper production of 8,715 tonnes of copper was 10% below expectations, he noted. "Operating costs remain very high an the business is loss-making with [Katanga] reporting an operating cash outflow of US$71-million for the period," he wrote in a note to clients. He added that Katanga, which operates in the Democratic Republic of Congo (DRC), remains a high-risk proposition "with the underlying business yet to achieve sustainable levels." The struggling company nearly ran out of cash last year before Glencore offered it a lifeline. Fellow DRC miner Anvil Mining Ltd. has also run into liquidity problems. Peter Koven

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next