March 21, 2011 / 10:54 AM / 7 years ago

UPDATE 2-Anvil Mining Q4 profit falls on lower copper production

* Q4 rev from cont. ops falls 36 pct

* Says stage II of Kinsevere project on schedule (Adds details)

March 21 - Congo-focused copper miner Anvil Mining Ltd reported a quarterly profit that fell 79 percent, as copper production fell nearly a fourth.

Fourth-quarter net income from continuing operations was $2.3 million, or 1 cent a share, compared with $10.9 million, or 9 cents a share, a year ago.

Revenue from continuing operations fell 36 percent to $15.2 million.

The company produced 3,817 tonnes of copper in the quarter, compared with 4,970 tonnes a year ago.

Average realized copper price was $3.55 per pound, compared with $3.09 per pound in the year-ago quarter, the company said.

Copper prices, which have risen 30 percent over last year, continued to climb helped by demand from rapidly urbanizing Asian countries.

Three-month copper on the London Metal Exchange was $9,572.15 a tonne by 1040 GMT, rising slightly from Friday’s close.

Construction of the second stage of the Kinsevere copper mine project in the Democratic Republic of Congo is on schedule, Anvil said, adding it expects to fully commission the project in the second quarter.

The project is fully funded, said the company, which has a market value of C$918 million.

The Kinsevere stage II project is a $400 million solvent extraction and electro-winning plant, which is expected to produce 60,000 tonnes of LME-grade cathode copper per year.

Exports from Congo’s southern copperlands will rise 25 percent to over 1 million tonnes this year due to renewed investor confidence following a government mining contract review, a top official in the province had told Reuters last year.

Shares of Montreal-based Anvil, which have risen 16 percent since the company reported third-quarter results in November, closed at C$5.84 on Friday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; ; Editing by Unnikrishnan Nair)

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