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PAM
PAM
Palabora - Fourth quarter 2005 - operations overview, production statistics and
trading statement
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")
FOURTH QUARTER 2005 - OPERATIONS OVERVIEW, PRODUCTION STATISTICS AND TRADING
STATEMENT
4Q 1Q 2Q 3Q 4Q FULL FULL
2004 2005 2005 2005 2005 YEAR YEAR
2004 2005
Palabora
mine
Tonnes 2,464 2,335 2,620 2,677 2,400 8,612 10,033
hoisted
(`000
tonnes)
Ore treated 2,314 2,156 2,459 2,572 2,349 8,657 9,536
("000
tonnes)
Average ore 0.73 0.72 0.71 0.71 0.723 0.74 0.716
grade:
copper (%)
Copper 52.2 48.0 48.4 52.9 47.8 187.7 197.0
concentrates
produced
("000
tonnes)
Average 30.6 29.3 32.2 31.3 31.2 29.0 31.0
concentrate
grade:
copper (%)
Copper in 16.0 14.1 15.6 16.6 14.9 54.4 61.2
concentrates
("000
tonnes)
Palabora
smelter/refi
nery
New 67.0 75.2 71.7 75.2 82.2 253.4 304.4
concentrate
smelted on
site ("000
tonnes)
New copper 17.3 20.0 19.4 22.7 22.4 67.2 84.5
anodes
produced
("000
tonnes)
Refined new 16.2 18.7 19.0 22.1 20.6 67.5 80.3
copper
produced
("000
tonnes)
By-products:
Magnetite 165 201 189 267 231.2 574 888.3
concentrate
("000
tonnes)
Refined 41 34 57 37 56.9 167 185.6
nickel
sulphate
(tonnes)
Vermiculite
plant
Vermiculite 51 48 54 53 55.1 193 209.8
produced
("000
tonnes)
Daily production from the underground mine declined in the fourth quarter and
averaged 26, 097 tonnes, due to poor loader availability and industrial action.
Production was 10% lower than the prior quarter and 1% lower than the
corresponding period in 2004. Total mine production was 10, 033,653 tonnes in
2005, representing a 17% increase compared to the total in 2004. The copper
grade improved slightly over the third quarter, but was down year on year due
to the required draw sequencing which favoured low grade material from
drawpoints on the western side of the cave.
During the quarter ore milled was 9% below the third quarter levels due to ore
availability from the underground but 2% above the comparable period in 2004.
Head grades to the mill increased by a relative 1.5% during the quarter
compared to the third quarter, but were 3.8% below the levels achieved in 2004.
Concentrate tonnage was 10% lower in the quarter due to a combination of lower
milled tonnage and head grade. Overall copper in concentrate was 12.4% higher
than in 2004, as a result of 10.2% higher milled tonnage and 6.2% higher
recovery offsetting 3.8% lower headgrade.
The fourth quarter concentrate smelted was 9% higher than the third quarter. No
maintenance shutdowns were undertaken during the period, but smelting rates
were reduced due to poor furnace condition. In the period, refined copper
decreased compared to the third quarter as anodes were accumulated in front of
the Tankhouse in preparation for a full smelter rebuild in the first quarter of
2006. Overall refined copper for 2005 increased by 19% compared to 2004.
Vermiculite Operations
During the period vermiculite production was similar to that of the comparable
period in 2004. Production for the full year increased by 8.7 compared to 2004,
with improved recoveries across the plant maintained throughout the year.
Market demand for the coarser grades continues to exceed production.
Magnetite
Shareholders are referred to a press announcement made on 21 December 2004,
wherein the company reported its intention to sell its magnetite stock piles.
After several months of the tender process and negotiations taking place, the
bidders for the stock pile were unable to meet all the conditions of the tender
and accordingly the Board has decided to terminate the tender process. Palabora
will continue to build the current arising business and evaluate options for
the longer term strategy of the magnetite business.
Trading Statement
Shareholders and debenture holders are advised that Palabora"s loss per share
for the year ended 31 December 2005 is expected to be as follows:
Basic loss per share of between 325 and 335 cents from a loss of 6,117 cents
per share for the comparable period.
Headline loss per share of between 320 and 330 cents per share from a headline
loss of 231 cents for the comparable period, principally as a result of
unfavourable exchange movements.
The above financial information relating to the year ended 31 December 2005 has
not been reviewed and/or reported on by the company"s auditors. It is
anticipated that the unaudited results for the year ended 31 December 2005 will
be published on or about 27 January 2006, at which stage further details will
be provided regarding the company"s performance.
For further information please contact the Managing Director, Keith Marshall,
on
+27 (0) 15 780 2271.
Phalaborwa
17 January 2006
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 17/01/2006 05:28:13 PM Produced by the JSE SENS Department
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