| Wed 19 Oct 2005, 8:55 | | Palabora - Third quarter 2005 - Operations overvie |
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Palabora - Third quarter 2005 - Operations overview and production statistics
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
JSE Code: PAM & ISIN: ZAE000005245
("Palabora" or "the Company")
THIRD QUARTER 2005 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2004 2004 2005 2005 2005 2004 2005
Palabora mine
Tonnes hoisted (`000 2,405 2,464 2,335 2,620 2,677 6,148 7,632
tonnes)
Ore treated ("000 2,345 2,314 2,156 2,459 2,572 6,343 7,187
tonnes)
Average ore grade: 0.75 0.73 0.72 0.71 0.71 0.75 0.71
copper (%)
Copper concentrates 64.2 52.2 48.0 48.4 52.9 135.5 149.3
produced ("000
tonnes)
Average concentrate 27.7 30.6 29.3 32.2 31.3 28.4 31.0
grade: copper (%)
Copper in 17.8 16.0 14.1 15.6 16.6 38.4 46.2
concentrates ("000
tonnes)
Palabora
smelter/refinery
New concentrate 59.0 67.0 75.2 71.7 75.2 186.5 222.2
smelted on site ("000
tonnes)
New copper anodes 14.4 17.3 20.0 19.4 22.7 49.9 62.0
produced ("000
tonnes)
Refined new copper 16.2 16.2 18.7 19.0 22.1 51.3 59.8
produced ("000
tonnes)
By-products:
Magnetite concentrate 144 165 201 189 267 409 657
("000 tonnes)
Refined nickel 36 41 34 57 37 126 129
sulphate (tonnes)
Vermiculite plant
Vermiculite produced 52.7 50.8 48.1 53.6 53.0 142.6 154.7
("000 tonnes)
Palabora operates South Africa"s largest copper mine in the Ba-Phalaborwa area
of Limpopo and supplies most of South Africa"s copper requirements. Until
recently, underground ore was mined from a large open pit which has now been
superceded by a smaller, underground mine. Copper production is supplemented
with imported copper concentrate.
In the third quarter of the year, daily production from the underground mine
continued to improve and averaged 29,096 tonnes, 1% higher than the prior
quarter and 10% higher than the corresponding period in 2004. In total,
2,676,810 tonnes of ore were hoisted in the quarter and the copper grade
remained steady at 0,71%.
Ore treatment rates in the concentrator increased by 5% compared to the prior
quarter. Concentrate production was up 9% resulting from a 3% relative reduction
in concentrate grade and a 6% increase in contained copper. The concentrate
grade fell as a result of ore mineralogy and the availability of alternative
higher grade concentrate sources.
Smelting rates were higher due to improved operating conditions, but a build up
of sulphuric acid stocks during the period prevented the smelter operating at
full capacity.
Refined copper increased in line with increased anode supply.
Vermiculite Operations
Vermiculite production for the quarter was marginally higher at 0.6% compared to
the same period in 2004. Production for the first 9 months was 8.5% higher than
the corresponding nine months in 2004.
Magnetite
Production increased with improved logistics and high demand. An announcement on
the tender process for the magnetite stockpiles is expected during the fourth
quarter of 2005.
Refinancing
On 21 September 2005, the Company concluded its debt restructuring program.
Existing debt has been replaced by a senior loan from South African and
international mining banks and certain shareholder debt has been subordinated.
The resultant debt profile for the company is now re-established on a more
sustainable basis.
Convertible Debentures
As announced via SENS on 21 September 2005, debenture holders may convert their
debentures into ordinary shares in the Company, provided the relevant notice
period of not less than 42 calendar days and not more than 60 calendar days is
given and that a conversion date is at least 15 days prior to the final maturity
date (i.e. 18 September 2006). To date, 4000 debentures have been converted
resulting in 133 333 ordinary shares and more than 8500 debentures will be
converted in November 2005.
For further information please contact the Managing Director, Keith Marshall, on
+27 (0) 15 780 2271.
Phalaborwa
19 October 2005
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 19/10/2005 08:55:08 AM Produced by the JSE SENS Department
