Revenue improves in spite of gold, nickel price challenges
29 July 2015
Mwana Africa, the multi-product pan-African minerals company, has announced improved consolidated revenue of $152.3 million for the financial year to 31 March 2015. This was achieved even though the year presented particular challenges of falling gold and nickel prices, challenges that have persisted beyond the end of the financial year.
Consolidated profits deteriorated sharply with a number of operational set-backs that contributed to higher unit costs. The group's net profit fell to $7.0 million from the preceding year's $50.6 million, although there was a $28 million impairment reversal in the prior year, which contributed to higher profits.
At the Freda Rebecca gold mine production stagnated as a result of equipment failures that needed to be addressed and improvements that were effected on an ad hoc basis.
These technical problems were paralleled at Bindura Nickel's Trojan mine where a large part of the mine's equipment had been allowed to deteriorate during the period of care and maintenance, and needed to be progressively refurbished and replaced throughout the year.
After the year's end, shareholders voted to replace a number of directors, including the former CEO, and to replace them with others considered suitable to lead Mwana to the next stage of its development. The changed directorate has opened the way for greater financial and technical involvement by Chinese investors, a development that bodes well for the future.
The planned re-start of Bindura Nickel's smelter was initiated during the past year at a budgeted cost of $22 million, with internal financing augmented by the issue of a $20 million five-year bond. The smelter will have the capacity to process Trojan's own concentrates and to toll-treat outsiders' concentrates to produce nickel leach alloy. The bond will be serviced from revenues enhanced by the smelter's operations.
In South Africa, while the recovery of diamonds at the Klipspringer residue treatment joint venture reached planned capacity, this was less than anticipated. Consideration is now being given to the reprocessing of coarser tailings and to an eventual reopening of underground operations on the mine's Leopard fissure.
Under new management Mwana's future looks promising, with strong relationships with host governments and communities.
About Mwana Africa PLC
Mwana Africa PLC is a pan-African, multi-commodity mining and development company. Mwana's principal operations and exploration activities involve gold, nickel, copper and diamonds in Zimbabwe, the Democratic Republic of the Congo (DRC), South Africa and Angola.
For further information contact:
Mwana Africa PLC
Yim Kwan, Finance Director
Amilha Young, Group General Counsel and Company Secretary Tel: + 44 (0) 203 696 5470
Public and investor relations
Jim Jones
Russell and Associates (South Africa)
42 Glenhove Road, Melrose Estate, Johannesburg, South Africa
Email: [email protected]
Tel: +27 (0) 11 880 3924
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