Toronto-listed Congolese copper and cobalt miner Katanga Mining Ltd (KAT.T) Tuesday reported a swing to a net loss due to lower copper sale volumes and prices, and said it expects to minimize power disruptions that affected its operations during the quarter by installing a new power convertor by the end of the month.
Katanga Mining, which is 75.15% owned by commodities titan Glencore International PLC (GLEN.LN), reported a 38% year-on-year drop in second-quarter revenue to $102.5 million due to a 23% drop in copper cathode volume sales to 11,488 metric tons, and a 28% drop in copper concentrate sales to 11,111 tons.
The primary delay in copper cathode sales was largely due to the need to value its copper nodules with more clarity for customs duty purposes, while the lower copper concentrate output stemmed from a mill failure.
The lower revenue led to a net loss attributable to equity shareholders of $0.9 million in the second quarter compared with a net profit of $43.7 million a year earlier.
Katanga Mining said it expects to sell the stockpiled second-quarter copper cathode in the third quarter.
Its earnings fell despite a 2.1% increase in copper output to 15,389 tons. The figure would have been higher had it not been for power disruptions that caused 17 days of lost output during the quarter and 28 days of lost output in the first half.
Katanga expects a new power convertor to be installed by the end of August which should minimize power disruptions. The convertor is part of a World Bank power project and a new synchronous condenser that is expected to be commissioned at the end of the third quarter of 2012.
At 1554 GMT, Katanga's shares were up 1.1% at C$0.46 a share.
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