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MTX
MEMTX
MTX - Metorex - Quarterly Operational and General Update
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex" or "the Company")
Quarterly Operational and General Update
Chief Executive Officer Terence Goodlace said; "It is pleasing to report a
continued increase in copper and cobalt production at Metorex operations. Both
copper and cobalt production increased by more than 18 per cent for the quarter
ended 30 September 2009 which bodes well for the viability of the Company.
Restoring the balance sheet remains a key imperative and the Group reduced debt
by R220 million during the quarter. The sale of Metorex`s shareholding in
Vergenoeg for US$60 million is still on track and should the deal become
unconditional the proceeds will be applied to the Ruashi debt."
Table 1: Metorex quarterly production statistics:
Commodity Unit 3 Months 3 Months 3 Months
ended March ended June ended
2009 2009 September
(Q3 F2009) (Q4 F2009) 2009
(Q1 F2010)
Copper - (t) 3 848 3 979 4 573
Chibuluma
Copper - Sable (t) 549 1 105 1 943
Copper - Ruashi (t) 2 919 5 245 5 690
(t) 7 316 10 329 12 206
Copper - subtotal
Cobalt - Sable (t) 13 3 12
Cobalt - Ruashi (t) 152 568 666
(t) 165 571 678
Cobalt - subtotal
Fluorspar (all (dmt) 37 908 26 851 45 545
grades)
Gold * (kg) 83 105 116
Antimony (mtu) 35 692 71 921 70 652
* Consolidated Murchison only
Table 2: Metorex quarterly sales statistics:
Commodity Unit 3 Months 3 Months 3 Months
ended ended June ended
March 2009 2009 September
(Q3 F2009) (Q4 2009
F2009) (Q1 F2010)
Copper - (t) 4 009 4 049 4 613
Chibuluma
Copper - Sable (t) 496 1 121 1 927
Copper - Ruashi (t) 3 029 5 302 4 986
(t) 7 534 10 472 11 526
Copper - subtotal
Cobalt - Sable (t) 10 5 13
Cobalt - Ruashi (t) 0 216 801
(t) 10 221 814
Cobalt - subtotal
Fluorspar (all (dmt) 28 523 19 784 34 772
grades)
Gold** (kg) 78 104 113
Antimony (mtu) 43 368 97 313 90 996
** Consolidated Murchison only
Commentary on production and sales for the quarter ended 30 September 2009
Copper production increased 18 per cent to 12 206 tons and copper sales by 10
per cent to 11 526 tons. The tonnage milled at Ruashi increased by 31 per cent
from the previous quarter to 303 786 tons at an average blended copper head
grade of 2.8 per cent and a blended cobalt head grade of 0.6 per cent. Tonnage
feed was mainly from the open pits. Due to planned maintenance by the power
utility in the Democratic Republic of the Congo, the Ruashi mill circuit was
affected by power shortages which impacted on 11 days of production in
July/August 2009. Ruashi continues to improve output and it is pleasing to
report that the mine produced 2 345 tons of copper in September 2009. Ruashi
delivered 3 975 tons of copper (70 per cent of production) against its hedge
book during the quarter. Chibuluma`s copper production increased by 15 per cent
due to higher delivered head grades of 3.5 per cent copper and higher
underground volumes of 144 000 tons being achieved. The Sable facility
increased copper production by 76 per cent to 1 943 tons of copper on the back
of the increased delivery of third party ore. It is estimated that Metorex
copper production will increase to 12 700 tons for the December 2009 quarter
with Ruashi producing 6 500 tons, Chibuluma 4 300 tons and Sable 1 900 tons.
Cobalt production increased by 19 per cent to 678 tons. This was primarily as a
result of increased cobalt production at Ruashi which produced 666 tons. For
the month of September 2009, Ruashi produced 272 tons of contained cobalt.
Cobalt sales increased by 268 per cent from the previous quarter as the flow of
cobalt to Johannesburg improved. It is estimated that Ruashi will produce 650
tons of cobalt in the December 2009 quarter.
Fluorspar production increased by 70 per cent to 45 545 dry metric tons for the
quarter. Production is determined by forecasted market demand. Fluorspar
production for the December 2009 quarter is estimated at 37 500 tons, which
caters for a two week shutdown in December.
Antimony and gold production from the Consolidated Murchison mine was in line
with the previous quarter. Subsequent to quarter-end, the Beta shaft winder
experienced an electric motor failure and this will impact negatively on
production in October 2009. Antimony and gold prices are showing some strength.
However the ongoing strength of the rand continues to threaten the viability of
the operation. This asset is still being held for sale.
Group debt position
During the quarter ended 30 September 2009, the Group`s gross debt position
reduced by R220 million to R1.92 billion (at average exchange rate of R7.5/US$).
Corporate short-term loans of R190 million were settled and Chibuluma serviced
its first capital term loan installment of US$4 million on 30 September 2009.
The proceeds from the proposed disposal of Metorex`s entire shareholding in
Vergenoeg Mining Company (Proprietary) Limited for US$60 million will be applied
to the Ruashi project loan, subject to the transaction becoming unconditional.
The information contained in this announcement has not been reviewed or reported
on by the Metorex`s auditors.
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill Jacques de Bie Tel: 011 447 3030
Johannesburg
14 October 2009
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 14/10/2009 15:47:07 Produced by the JSE SENS Department.
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