Lumwana Mines reaps US$ 529 million Profit in the Year 2010
Lumwana mines under Equinox Minerals Limited as a holding company, generated US$ 529 million in profits in the year 2010.
Equinox Mineral limited as a holding company was taken over by the worlds largest gold miner, Barrick Gold on 25th April 2011 at an amount of US$ 7.68 billion.
In the financial year 2009, the profit was US$ 196 million. So, the 2010 profits increased by 170 percent.
The Equinox president and chief executive officer, Craig Williams who announced the figures said that the after tax profit for 2010 was US$ 269 million. He said that this was better than the after tax profit of US$ 183 million recorded in 2009.
The chief executive said cash resources increased by 193 percent from US$ 109 million in 2009 to US$320 million in 2010.
Earning per share
In the year ending 31st December 2009, the company incurred a loss per share of US$ 0.27 but in the year ending 31st December 2010 the company generated US$ 0.38 as earnings per share.
Copper production for the year ended 2010 increased by 34 percent reaching 146,690 tonnes, from 109,413 tonnes in 2009.
The operating cost decreased from US$ 1.49 per pound of copper in 2009 to US$1.38 per pound of copper in 2010.
Williams said as a result of improved and mechanical performance, material movement exceeded 100 million tonnes in 2010, an increase of 24 percent from 81.2 million tonnes in 2009.
Ore milled in 2010 increased by 42 percent to 18.6 million tonnes from 13.1 million tonnes in the year 2009.
Corporate loan facility
Williams also disclosed that the company had secured a new US$ 400 million corporate loan facility which replaced the old Lumwana project senior and subordinated debt facilities.
The president and chief executive said the company had delivered shareholder value through the optimisation of Lumwana. He further said that concentrate was delivered to the Chambishi Copper Smelter Limited and the Konkola Copper Mines plc smelter at Nchanga on the Zambian Copperbelt.
Williams further said that the Lumwana production for the year 2011 was targeted at
145, 000 tonnes of copper in concentrate and a target operating cost of US$ 1.45 per pound of copper.
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