CUO copperco limited

half yearly

  1. 3,559 Posts.
    Directors’ Report RESULTS

    The consolidated entity recorded a gross profit of $13,976,889 from revenue of $23,351,981, a profit before tax of $584,292 and an operating loss after income tax of $266,467 (2006:$4,019,517). No income tax is payable. The company commenced production of LME “A” Grade Copper from the Lady Annie Copper Project during the reporting period.
    The gross operating margin of the consolidated entity was 60% and the EBITDA margin was 33%.

    REVIEW OF OPERATIONS

    MINING OPERATIONS
    Lady Annie Operations

    The Lady Annie Copper Project was successfully commissioned in September 2007 with plating of LME “A” grade copper cathode commencing on 27 September 2007. Ramp up to nameplate capacity is expected in April 08 as inventory under leach reaches design levels.
    Copper produced from the Lady Annie project during the December quarter totalled 2,984 tonnes from 780,743 tonnes of ore stacked at a grade of 0.84% Cu. Copper cathode sold (2,928 tonnes) generated Sales Revenue of A$23.35M for an average weighted price of A$7,974 per tonne at average A$ to US$ exchange rate of 0.89. For the half year to December 2007 a total of 1,021,908 tonnes of ore was mined at an average copper grade of 0.92%Cu, matching the grade prediction from the ore reserve model.
    Over the corresponding 6 month period 780,743 tonnes of ore was stacked and placed under leach at an average copper
    grade of 0.84%Cu. Copper Leach Kinetics are matching design very closely with average acid consumption marginally below budget expectations. Unit cash costs for the December quarter including mining, processing, administration and royalties were US$1.11/lb, reflecting lower units of production to design but in line with expectations. Total cash costs are in line with budget.
    Operational performance has achieved all key design and equipment performance expectations. Overall cash operating
    costs are in accordance with expectations, with mining in line with budget, processing under budget and site administration above budget, the latter reflecting additional manpower and changes to crew rosters.

    DEVELOPMENT PROJECTS
    Lady Anne Expansion Project
    Steady progress was made on the expansion project during the period. The environmental approvals for the project have been granted and detail design commenced in the third quarter calendar 2007 with the appointment of the EPCM engineer.
    Preliminary construction activities commenced in January 2008.

    EXPLORATION
    The global Mineral Resource for the Lady Annie Project is 40Mt at 0.9% Cu for 358,700 tonnes of contained copper at a
    0.3% Cu ore cut-off grade. The Ore Reserve contains 142,200 tonnes of copper metal, which is a 25% increase on the Ore Reserve that the Feasibility study was based on.
 
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