Minmetals Resources Limited (HKEx stock code 1208) (“MMR”) today announced its Fourth Quarter Production Report for the three months ended 31 December 2011. The report covers the Company’s operations in Australia and Laos.
Highlights from MMR for the fourth quarter included:
- Full year 2011 results for all MMR mines within annual guidance for production and cost.
- Copper cathode production exceeded 80,000tpa nameplate capacity for the second consecutive quarter following the successful commissioning of Sepon’s expanded copper plant.
- Zinc production at Century exceeded revised 2011 guidance following strong operating performance in the fourth quarter. A monthly production record of 54,264 tonnes of zinc metal was achieved in December.
- The London Metal Exchange (LME) confirmed that ’Sepon’ brand copper cathode has been listed as Copper – Grade A brand, eligible for good delivery to LME-approved warehouses.
- Minmetals Resources remains committed to its friendly offer to acquire all of the common shares (on a fully diluted basis) of Anvil Mining Limited. The Board approved expenditure of A$157 million for the next stage of the project. The Environmental Impact Statement (EIS) was also accepted by the Queensland Department of Environment and Resource Management (DERM).
- The preferred development option for the Izok and High Lake projects in the Slave Geographical Province in Canada was identified in a pre-feasibility study and work has commenced towards a full feasibility study and permitting.
- Golden Grove achieved two milestones: drilling of the first hole in the site’s new open copper pit which adds an additional two years mine life to the operation; and the resumption of shipments of High Precious Metals (HPM) lead concentrate through the Port of Geraldton.
Solid fourth quarter production led to a strong full year 2011 operating result with mines, Sepon in Laos and Century, Golden Grove and Rosebery in Australia, meeting annual cost and production guidance.
CEO Andrew Michelmore said these consistent results demonstrated the inherent value in MMR’s assets.
“In the hands of our experienced and skilled management team these assets continue to deliver and form the solid base on which our business operates,” he said.
“In addition, we are now seeing the results of recent organic expansion investment with Sepon delivering record copper cathode numbers.”
In the fourth quarter MMR also reported the effective completion of the sale of the trading, fabrication and other businesses to China Minmetals Nonferrous Metals Co, Ltd for an agreed price of US$726.8 million during the quarter.
“The divestment of our downstream assets realigns our focus on upstream base metals and further strengthens our balance sheet,” said Mr Michelmore.
“With this solid asset base and strong balance sheet in place, we are aiming to build a major mid-tier diversified mining business. Progressing our offer for Anvil Mining and approving new investment on the Dugald River and Izok and High Lake projects were highlights in the delivery of our growth strategy this quarter,” he said.
Please see the attached full report for further information or visit www.minmetalsresources.com or www.mmg.com.
About Minmetals Resources Limited
Minmetals Resources Limited (MMR) is a mid-tier global resources company that mines, explores and develops base metal projects in Australia, and around the world. The company is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange under Stock Code: 1208. MMR owns the MMG group of companies and their operations after acquiring them on 31 December 2010.
MMR is uniquely positioned with an experienced international management team, public ownership on the Hong Kong stock exchange and support of its ultimate controlling shareholder China Minmetals Corporation (CMC).
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