9th Aug 2005 18:31
First Quantum Minerals Ld09 August 2005 NEWS RELEASE 05-09 August 9, 2005 www.first-quantum.com FIRST QUANTUM REPORTS OPERATIONAL AND FINANCIAL RESULTS FOR THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2005 (All figures expressed in US dollars) First Quantum Minerals Ltd. (TSE Symbol "FM", LSE Symbol "FQM") is pleased toannounce its results for the three months and six months ended June 30, 2005.The complete Financial Statements and Management Discussion and Analysis areavailable for review at www.first-quantum.com and should be read in conjunctionwith this News Release. Highlights - Three Months Ended June 30, 2005 • Commercial production at Kansanshi was achieved on April 19, 2005 • Total copper production was 29,909 tonnes • Net earnings of $29.0 million or $0.47 per share • Operating cash flow before working capital movements was $43.0 million or $0.70 per share • Interim dividend declared in August of CA$0.02 per share • Group cash costs (C1) were $0.60 per pound and total costs (C3) per pound were $0.80 Financial Results (see attached financial statements) Second quarter revenues were $86.5 million, which included copper revenues of$83.3 million, acid revenues of $2.6 million and gold revenues of $0.6 million.Copper revenues increased due to improvements in both the realized copper priceand a 212% increase in copper production with the start of commercial productionat Kansanshi. Copper revenues at Bwana / Lonshi were $38.9 million for the quarter. Copperrevenues at Kansanshi were $44.4 million comprised of $30.3 million for coppercathode and $14.1 million for copper in concentrate. Kansanshi revenue figuresonly include revenues from the commencement of commercial production (April 19,2005). The realized copper price per the statement of earnings and deficit was $1.42per pound for the quarter, which represents a significant increase from lastyear due to the rising market price for copper and the Company's unhedged copperposition. The realized copper price is calculated after deductions fortreatment and refining charges (TC/RCs) and freight parity. The unadjustedcopper price for the quarter was $1.53 per pound compared with an average LMEcash price of $1.54 per pound. Certain copper sales agreements entered into by the Company call for "provisional pricing" based on the average applicable copper price for aspecified future monthly period. Any increase or decrease in copper price couldtherefore result in the copper revenues for the Quarter being adjusted toreflect the change in the actual future copper price. Included within copperrevenue for the quarter was 20,500 tonnes of copper that has been provisionallypriced at an average of $1.55 per pound. The average LME cash price for themonth of July was $1.64. Cost of sales for the Quarter was $35.0 million. Cost of sales as a percentageof revenue decreased to 40% in the second quarter of 2005. Although unit costshave risen from 2004, the cost of sales have decreased as a percentage ofrevenue which is explained by rising copper prices and the company sellingcopper concentrate for the first time in the second quarter. As the TC/RC's are recognized as a revenue deduction, they are not includedwithin the cost of sales. Notwithstanding, in calculating the group cash costs,which represent the cost of production, the TC/RC costs are added to the cashand total costs to approximate the cost of producing finished copper. The cash flow from operating activities before non-cash working capitalmovements was $43.0 million or $0.70 per share. The cash inflow, after non-cashworking capital movements, from operating activities was $2.3 million or $0.04per share. The difference between operating cash flow and earnings principallyarises from timing differences due to the startup of Kansanshi, as inventoryincreased by $11.1 million and accounts receivable increased by $26.5 million.Both of these movements are consistent with an operation achieving commercialproduction. Net earnings for the quarter increased to $29.0 million or $0.47 per share. Six month revenues were $124.7 million which included copper revenues of $121.5million, acid revenues of $2.6 million and gold revenues of $0.6 million.Copper revenues increased due to improvements in both the realized copper priceand an increase in copper production with the start of commercial production ofKansanshi. Copper revenues at Bwana/Lonshi were $77.1 million for the six months. Copperrevenues at Kansanshi were $44.4 million comprised of $30.3 million for coppercathode and $14.1 million for copper in concentrate. Kansanshi revenue figuresonly include revenues from the commencement of commercial production (April 19,2005). The realized copper price per the statement of earnings and deficit was $1.43per pound for the six months, which represents a significant increase from lastyear due to the rising market price for copper and the Company's unhedged copperposition. The realized copper price is calculated after deductions fortreatment and refining charges (TC/RCs) and freight parity. The unadjustedcopper price for the six months was $1.51 per pound compared with an average LMEcash price of $1.51 per pound. Included within the six month copper revenueswere 20,500 tonnes of copper that has been provisionally priced at $1.55 perpound. The average LME cash price for the month of July was $1.64. Cost of sales were $51.2 million, the increase in cost of sales was principallyas a result of the increase in copper production associated with the start ofcommercial production at Kansanshi. The cash flow from operating activities before non-cash working capitalmovements was $62.6 million or $1.02 per share. The cash inflow from operatingactivities after working capital movements was $25.1 million or $0.41 per share.The significant turnaround in cash flow from operations is attributable to theimprovement in earnings resulting from increased copper production (includingthe startup at Kansanshi) and the strong copper prices. The difference betweenthe cash flow before and after working capital movements can be attributed tothe build up of both accounts receivable and inventory at Kansanshi. Net earnings for the six months increased to $56.2 million or $0.92 per share,including the gain on sale from Anvil of $16.1 million or $0.26 per share. Bwana / Lonshi Mining During the second quarter, approximately 319,000 tonnes of ore and approximately4,025,000 tonnes of waste were mined from Lonshi. The strip ratio for thequarter was 13:1, which was greater than the revised life of mine strip ratio of12:1. With the end of the wet season, mining rates and costs improved as amajority of the material mined came from the two southern cutbacks, which willcontinue to provide the ore production in the third quarter. Waste strippingalso commenced in the North cutback. For the six months ended June 30, 2005, approximately 471,000 tonnes of ore andapproximately 6,621,000 tonnes of waste were mined from Lonshi. The strip ratiofor the first six months was 14:1, which was greater than the revised life ofmine strip ratio of 12:1. At quarter end, the current mine plan at Lonshi was under review and a new mineplan is expected during the third quarter. It is expected that this new mineplan will result in an increased strip ratio at Lonshi. In addition, the miningfleet at Lonshi continues to grow to cope with the ore demands from Bwana, whichis resulting in an acceleration of the depletion of the oxide reserves atLonshi, which will also be considered in the new mine plan. Processing During the second quarter, copper production increased to 11,717 tonnes. The22% increase over 2004 was principally due to the increase in electrical currentflow through the tank house at Bwana that began during quarter three 2004. Cash costs were $0.57 per pound and total costs were $0.79 per pound of copper.The increase in costs can be principally attributed to a $0.10 increase perpound in ore costs and associated transportation costs. The increase in orecosts have resulted from ore that was mined in the first quarter, during the wetseason with a higher cost base, working its way through the ore stockpiles. Bythe end of the quarter the costs were starting to decline as the mining fleetwas able to increase production as mining conditions have improved. Inaddition, Bwana has also started to process lower ore grades during this periodof high copper prices which has resulted in higher transportation costs on aunit basis from the Lonshi pit. The acid cost at Bwana is $0.04 per poundhigher than the second quarter of 2004 due to the increased copper productionand the high gangue acid consumption through the copper circuit. The increasedore and acid cost have however been partially offset by the additional acidcredit from the Solwezi Acid Plant of $0.07 per pound. The gangue acidconsumption was 2.7:1 in the second quarter. Acid production increased to 69,218 tonnes, of which 34,309 tonnes were producedat Ndola and 34,909 tonnes at Solwezi. Of the total acid produced, 14,939tonnes were sold externally and 18,824 tonnes were sold within the group. For the six months ended June 30, 2005, copper production increased to 23,745tonnes. The 23% increase over 2004 was principally due to the increasedelectrical current flow through the tankhouse that began in the third quarter of2004. The increase in cash costs from 2004 can be principally attributed to anincrease of $0.09 per pound due to ore and transportation costs at Lonshi and a$0.06 per pound increase in acid costs due to the increased gangue acidconsumption as a result of processing more dolmitic ore. These increased costshave been offset by the acid credit of $0.04 per pound from the Solwezi AcidPlant. Acid production was 124,493 tonnes of which 67,245 tonnes were produced at Ndolaand 57,248 tonnes at Solwezi. Of the total acid produced, 14,988 tonnes weresold externally and 23,253 tonnes were sold within the group. Kansanshi Copper-Gold Operation Mining During the second quarter, 2,051,000 tonnes of ore and 3,185,000 tonnes of wastewere mined. The world shortage of tires continues to limit mining capability,although the situation has improved from the first quarter. For the six monthsended June 30, 2005, 4,171,000 tonnes of ore and 4,836,000 tonnes of waste hadbeen mined. During the first quarter up to 50% of the 100 tonne trucks had beenunavailable due to the tire shortage. This percentage has dropped significantlyin the second quarter as truck availability continues to improve.Notwithstanding, the company is continuing to investigate options to reduce itsreliance on the 100 tonne trucks. The tire shortage has not impacted the amount of ore available for processing atKansanshi; but has resulted in the deferral of some waste stripping which willbe caught up once all the equipment is available, which is anticipated will beduring the third quarter. Processing: For the quarter, contained copper production increased to 18,192 tonnes whichcomprised 7,963 tonnes of copper in concentrate and 10,229 tonnes of coppercathode. The company commenced commercial production at Kansanshi on April 19th2005, after the company had achieved between 65 - 70% of design capacity atKansanshi continuously for at least one week. Cathode By the end of the quarter, Kansanshi had produced in excess of 3,600 tonnes ofcopper cathode for May and June and the oxide circuit was running well. For thequarter, the cash cost for cathode was $0.61 per pound and the total cash costwas $0.80 per pound. With the increase in cathode production and otherefficiencies it would be expected that unit costs will fall in the comingquarters. Concentrate The sulphide circuit start-up has been successful, however the hardness of aportion of the sulphide ore has restricted ore throughput, the company iscurrently addressing ways of alleviating this issue with the main focus onblending of the harder ore with softer ore types. The cash costs for copper inconcentrates, which includes the TC/RC's, was $0.65 per pound and the total cashcost was $0.81 per pound for the second quarter. Unit costs are expected tofall as throughput and production increases in the coming quarters. Guelb Moghrein Copper-Gold Deposit Guelb is located 250 kilometres northeast of the nation's capital, Nouakchott,near the town of Akjoujt, in Mauritania. It consists of an open pit mineablecopper/gold deposit. In January 2005, the detailed design and engineeringcontract was awarded with site establishment commencing in March 2005. Thecompany expects to develop Guelb in 2005 with commercial production start-upexpected in the first quarter of 2006. Production will be initially targeted atapproximately 30,000 tonnes of copper and 50,000 ounces of gold per year in theform of a copper-gold concentrate which will be trucked to the port ofNouakchott and exported to international smelters As at June 30, 2005, the Company had capitalized acquisition and developmentcosts totalling $22.0 million (2004: $10.3m). Of the capitalized amount, $7.6million relates to the discounted value of two future acquisition payments whichare due to be paid in 2005 and 2006 respectively. Overall the project is approximately 50% complete with detailed design being 96%complete with the only major outstanding item being final details on the Orapapowerhouse. The recent military coup in Mauritania has had no impact on theconstruction program and the country returned to normal within 24 hours. Civilengineering is currently ongoing with the foundations for the SAG and regrindmills having commenced. The Environmental and Social Impact Assessment reportwill shortly be submitted to the Ministry of Mines and Industry in Nouakchottfor review. Frontier Copper Deposit, In May 2004, First Quantum announced the results of an independent copper-cobaltresource estimate completed at Frontier Project located in Haut KatangaProvince, Democratic Republic of Congo. As at June 30, 2005 a projectengineering study was substantially complete and a final report is expected inthe third quarter of 2005. As at June 30, 2005, the company had spent $5.0 million on this project.Geological work is continuing with a further 2000 new soil samples being takento expand the geochemical database. Work is ongoing on an environmental impactassessment at Frontier as well as considering aspects such as power supply. Kashime Copper Prospect In December 2004, the Company announced the results of a reverse circulationdrill program completed at the Kashime copper prospect (Kashime).Mineralization at Kashime occurs as disseminated to semi massive bornite andchalcopyrite, oxidized in part, and is hosted by an altered, schistose,carbonaceous sandstone unit overlain by a barren hanging wall dolomitic marble.The mineralized unit dips southwards at 10 - 20 degrees, and depth of oxidationis controlled by proximity to faulting. The 2004 drill program tested the mostanomalous 1,000 metre long section of a 2,000 metre long, +300 parts per millioncopper soil anomaly. Highlights from the 13 hole drill program included 56metres grading 2.08% copper; 55 metres grading 1.20% copper and 101 metersgrading 0.92% copper. At the end of July, the Company has completed 40 holes for approximately 5,600metres of diamond drilling over a strike length of 3,500m. Assays results havebeen received for one half of the drill holes and a potential resource estimatewill be determined once all the assays are available. During the six months ended June 2005, the Company expensed $2.2 million onother exploration targets that were predominantly located within the DRC andZambia. Of this amount, $0.6 million was related to the Kashime Prospect. Asat June 30, 2005, no costs associated with this exploration property had beendeferred. Interim Dividend In August, the company declared an interim dividend of CA$0.02 per share whichwill be paid during the third quarter. The interim dividend is consistent withthe Company's dividend policy of declaring an interim dividend of one-third ofthe prior year's full dividend. Investments -Carlisa The Company holds an 18.8% interest in Carlisa Investment Corporation (Carlisa),which holds a 90% interest in Mopani Copper Mines Plc (Mopani). The carryingvalue of this investment as at June 30, 2004 is $9.5 million. There has been nomovement in this investment since 2002. For the first six months of 2005, Mopani produced approximately 64,000 tonnes offinished copper and 900 tonnes of cobalt. As the majority owner of Mopani is aprivate company registered in Zambia, only limited public information isavailable for dissemination. Investments -Anvil On February 28, 2005, the Company disposed of all of its 4,029,617 common sharesin Anvil at a net price of CA$6.75 per share. In the first quarter of 2005, theCompany recognized a gain of approximately $16.1 million on the Anvil Sale. TheCompany continues to hold 296,631 warrants in Anvil at an exercise price ofCA$1.13. Outlook With Kansanshi reaching commercial production in mid-April, the second quarterresults do not include a full quarter of production from Kansanshi. Thiscoupled with commercial production levels being only 65 - 70% of design capacityshould result in an increase in the copper production at Kansanshi in Q3 whenthe operations achieve at least full design capacity. In July, Kansanshiproduced 4,363 tonnes of cathode, which meant that the plant has exceeded 3,600tonnes of copper cathode for the last three months. Concentrate production forthe month of July was 3,207 tonnes. The hardness of a portion of the sulphideore has reduced throughput through the mill but blending with softer sulphideores has been initiated to alleviate this problem. Kansanshi, however still remains on target to achieve its forecast of 91,000tonnes of copper for the year. A $29 million capital program in 2005 will expand the sulphide circuit to eightmillion tonnes of treatment capacity which will result in an average of 145,000tonnes of finished copper production per year during 2006-2009. An additionalexpansion of the sulphide circuit is also under consideration to increase thesulphide treatment capacity to 12 million tonnes of sulphide ore to maintainannual copper production of 145,000 tonnes as oxide ore is depleted and sulphideore grades begin to fall. First Quantum has also been investigating alternative processing routes for aportion of the increased copper concentrate production. To this end, theCompany has purchased a second-hand pressure oxidation facility. The pressureoxidation facility has been dismantled and is enroute to Kansanshi. Once onsite, the pressure oxidation facility and ancillary equipment will bereconstructed and commissioned for use. An additional advantage of thistechnology at Kansanshi is that it will generate much of the acid required foroxide leaching. It will also enable the leach circuit to operate at elevatedtemperatures and hence, substantially improve copper recovery in mixed ores. Afull report of the impact of this process route is being prepared by independentconsultants, Bateman Engineering Pty Ltd. With a strong start to the year, the Bwana / Lonshi operation is currently ontrack to exceed its initial production estimates of between 40,000 to 45,000tonnes of copper cathode in 2005 with 23,745 tonnes of copper cathode alreadyproduced in the first half of 2005. With initial estimates indicating anincreasing strip ratio in the revised mine plan at Lonshi, expected in quarterthree, the ore costs are likely to remain higher than initially expected. Fullyear cash costs are now expected to be between $0.60 per pound and $0.65 perpound. In July, the Bwana / Lonshi operation produced 4,292 tonnes of coppercathode. At Guelb, the project engineering study is now complete and construction is wellunderway with the project now 50% complete. Commercial production is expectedin the first quarter of 2006. The Company remains unable to release anengineering report as the current resource statement is not compliant withNational Instrument 43-101. At Frontier, the project engineering study is substantially complete. Thiscoupled with an updated resource/reserve statement is expected to be publishedin the third quarter of 2005. At the Kashime prospect initial diamond drillinghas been completed with an initial reserve estimate expected once the finalassay results are available. On Behalf of the Board of Directors 12g3-2b-82-4461of First Quantum Minerals Ltd. Listed in Standard and Poor's"G. Clive Newall" Sedar Profile #00006237G. Clive Newall For further information visit our web site at www.first-quantum.com United Kingdom contact: Clive Newall, President1st Floor, Mill House Mill Bay Lane Horsham West Sussex RH12 1TQ United Kingdom Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: [email protected]. or Carina Corbett, 4C Communications Ltd, Tel: + 44 20 7907 4761 North American contact: Geoff Chater or Bill Iversen Suite 800 - 543 Granville Street, Vancouver, British Columbia, Canada V6C 1X8 Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: [email protected] Summary of Quarterly Results (unaudited) Table 19 2005 2005 2004 2004 2004 2004 2003 2003Statement of Operations and Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3Deficit(millions, except whereindicated)Total Revenues 86.5 $38.2 $30.7 $31.2 $26.3 $25.3 $19.9 $17.7Cost of Sales 35.0 16.2 14.5 14.1 13.1 12.1 13.0 11.5Net Earnings (Loss) 29.0 27.2 9.3 7.9 4.1 6.7 1.4 3.3Basic Earnings per share $0.47 $0.44 $0.16 $0.13 $0.07 $0.11 $0.02 $0.06Diluted Earnings per share $0.46 $0.43 $0.15 $0.13 $0.07 $0.11 $0.02 $0.06 Realized copper price $1.42 $1.44 $1.20 $1.16 $1.11 $1.03 $0.84 $0.75Cash Costs (C1) (per lb) (1) $0.60 $0.58 $0.48 $0.45 $0.48 $0.39 $0.47 $0.42Total Costs (C3) (per lb) (1) $0.80 $0.75 $0.59 $0.68 $0.67 $0.53 $0.66 $0.47 Financial Position (millions)Working Capital $47.1 $61.4 $33.9 $51.8 $28.0 $40.2 $13.5 $9.6Total Assets $561.9 $523.1 $473.1 $385.0 $276.4 $241.8 $162.1 $132.3Weighted Average # Shares 61,499 61,267 60,942 60,668 59,434 58,568 55,984 54,707(000's) Bwana/LonshiProductionStatisticsMining:Waste Mined (000's) 4,025 2,596 2,926 4,213 2,854 1,036 885 1,833Ore Mined (000's) 319 152 261 257 85 66 439 260Ore Grade % 5.5 5.3 6.4 4.7 5.2 5.4 5.5 4.8 Processing:Ore Processed (000's) 328 264 256 278 237 209 197 233Contained Copper (tonnes) 13,354 13,804 12,824 12,908 10,813 10,904 10,790 11,188Grade % 4.1 5.2 5.0 4.6 4.6 5.2 5.5 4.1Recovery % 88 87 85 88 89 89 89 79Copper Produced (tonnes) 11,717 12,028 10,942 11,330 9,585 9,689 9,558 8,862Acid Produced (tonnes) 69,218 55,275 35,671 35,920 34,265 34,344 33,035 36,245Surplus Acid (tonnes) 14,939 49 9,664 16,884 19,149 20,763 15,689 20,275 Cash Costs (per lb) (1) $0.57 $0.58 $0.48 $0.45 $0.48 $0.39 $0.47 $0.42Total Costs (per lb) (1) $0.79 $0.75 $0.59 $0.68 $0.67 $0.53 $0.66 $0.47 Kansanshi ProductionStatisticsMining:Waste Mine (000's) 3,185 1,651 2,857 1,175 - - - -Ore Mined (000's) 2,051 2,120 1,346 - - - - -Ore Grade % 2.0 1.7 2.4 - - - - - Processing:Ore Processed (000's) 1,129 688 - - - - - -Contained Copper (tonnes) 21,145 11,541 - - - - - -Recovery % 86 65 - - - - - -Copper Produced (tonnes) 18,192 7,497 - - - - - - Combined Cash Costs:Cash Costs (per lb) (1) $0.63 - - - - - - -Total Costs (per lb) (1) $0.80 - - - - - - - Cathode Cash Costs:Cash Costs (per lb) (1) $0.61 - - - - - - -Total Costs (per lb) (1) $0.80 - - - - - - - Concentrate Cash Costs:Cash Costs (per lb) (1) $0.65 - - - - - - -Total Costs (per lb) (1) $0.81 - - - - - - - (1) For the definition of cash and total costs, reference should be made to section 8. of the MD&A Consolidated Balance SheetsAs at June 30, 2005 and December 31, 2004(expressed in thousands of US dollars)(unaudited) 2005 2004 $ $AssetsCurrent assetsCash and cash equivalents 56,464 50,356Restricted cash (note 8) 4,297 1,931Accounts receivable and prepaid expenses 41,613 21,927Inventory (note 4) 50,779 31,674 153,153 105,888Investments (note 5) 9,522 15,340Exploration properties 444 444Property, plant and equipment (note 6) 367,225 319,222Other assets and deferred charges (note 7) 31,589 32,167 561,933 473,061LiabilitiesCurrent liabilitiesAccounts payable and accrued liabilities 43,970 33,884Current taxes payable 9,005 3,248Current portion of long-term debt (note 8) 40,319 22,865Current portion of other liabilities (note 10) 12,737 12,012 106,031 72,009Long-term debt (note 8) 183,462 191,661Asset retirement obligations 4,162 3,762Future income tax liability (note 9) 15,280 12,313Other liabilities (note 10) 33,770 33,286 342,705 313,031Minority interests 5,505 2,190 348,210 315,221Shareholders' EquityEquity accounts (note 11) 164,434 161,776Retained earnings (deficit) 49,289 (3,936) 213,723 157,840 561,933 473,061Commitments (note 14) Consolidated Statements of Operations and DeficitFor three and six months ended June 30, 2005 and 2004(expressed in thousands of US dollars)(unaudited) Three months ended Six months ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 $ $ $ $Revenues Copper 83,373 23,398 121,545 45,480 Acid 2,557 2,927 2,567 6,097 Gold 585 - 585 - 86,515 26,325 124,697 51,577Costs and expensesCost of sales 35,070 13,079 51,236 25,170Depletion and amortization 6,940 3,046 10,845 5,378Exploration 1,140 589 2,152 966Foreign exchange (gain) loss (4,231) 1,403 (5,048) 1,532General and administrative 2,173 1,480 4,279 2,625Interest and financing fees on long-term debt 3,383 927 4,233 1,514Other 2,490 (780) 2,663 (1,036)Gain on disposal of investment - - (16,127) - 46,965 19,744 54,233 36,149 Earnings before income taxes, minority interests 39,550 6,581 70,464 15,428and equity earningsIncome taxes (note 9) 7,186 2,638 10,924 5,252Minority interests 3,315 - 3,315 -Equity earnings - 170 - 604Net earnings for the period 29,049 4,113 56,225 10,780Retained earnings (deficit) - Beginning of period 20,240 (25,279) (3,936) (31,946)Dividends - - (3,000) -Retained earnings (deficit) - End of period 49,289 (21,166) 49,289 (21,166) Earnings per common shareBasic $0.47 $0.07 $0.92 $0.18Diluted $0.46 $0.07 $0.90 $0.18Weighted average number of shares outstanding 61,499 60,300 61,384 59,434(000's) For a copy of the notes visit our website at www.first-quantum.com Consolidated Statements of Cash FlowsFor three and six months ended June 30, 2005 and 2004(expressed in thousands of US dollars)(unaudited) Three months ended Six months ended June 30, June 30, June 30, June 30, 2005 2004 2005 2004 $ $ $ $Cash flows from operating activitiesNet earnings for the period 29,049 4,113 56,225 10,780Items not affecting cashDepletion and amortization 6,940 3,046 10,845 5,378Minority interest 3,315 - 3,315 -Provision for deferred stripping 481 - 4,384 -Unrealized foreign exchange (gain) loss (4,296) 1,331 (4,859) 1,721Future income tax expense 3,150 2,638 2,967 5,252Stock-based compensation expense 716 281 1,369 467Unrealized derivative instruments (gain) loss 3,189 - 3,626 -Other 449 171 852 517Gain on disposal of investment - - (16,127) - 42,993 11,410 62,597 23,511Change in non-cash operating working capitalDecrease (increase) in accounts receivable and (26,528) (64) (17,938) (2,835)prepaid expenses(Increase) decrease in inventory (11,150) 482 (18,880) 837Increase (decrease) in accounts payable and accrued (3,021) (1,050) (691) (4,109)liabilities 2,294 10,778 25,088 17,404Cash flows from financing activitiesMovement in restricted cash (2,542) (3,868) (2,365) (3,868)Proceeds from long-term debt - 23,496 31,523 41,372Repayments of principal on long-term debt (10,126) (2,524) (15,434) (5,026)Proceeds from issue of common shares and warrants 439 232 1,288 43,557Payments of dividends (3,000) - (3,000) -Payments for deferred premium obligation and finance (7,582) (879) (9,982) (2,209)fees (22,811) 16,457 2,030 73,826Cash flows from investing activitiesNet payments to acquire capital assets and (1,256) (45,397) (39,987) (80,346)investmentsPayments for deferred exploration and stripping costs (1,026) (2,305) (3,130) (3,469)Proceeds on disposal of investment - - 21,944 - (2,282) (47,702) (21,173) (83,815) Effect of exchange rate changes on cash 274 (1,079) 163 (1,573)Increase (decrease) in cash and cash equivalents (22,799) (20,467) 5,945 7,415Cash and cash equivalents - beginning of period 78,989 52,980 50,356 25,592Cash and cash equivalents - end of period 56,464 31,434 56,464 31,434 Segmented InformationFor three months ended June 30, 2005 and 2004(expressed in thousands of US dollars)(unaudited) For the three months ended June 30, 2005, segmented information is presented as follows: BLO KCO GMP CDA Inter-segment Total $ $ $ $ $ $ External revenues 44,423 45,063 - 2,212 (5,183) 86,515Segment profit (loss) 15,170 16,709 - (2,830) - 29,049 Property, plant and equipment 6,874 18,449 8,282 5 - 33,610additionsTotal assets 192,566 373,949 22,213 212,127 - 800,855Inter-company balances included (83,886) - - (155,036) - (238,922)in total assetsTotal consolidated assets 108,680 373,949 22,213 57,091 - 561,933 For the three months ended June 30, 2004, segmented information is presented as follows: BLO KCO GMP CDA Inter-segment Total $ $ $ $ $ $ External revenues 26,554 - - 1,331 (1,560) 26,325Segment profit (loss) 6,773 - - (2,660) - 4,113 Property, Plant and equipment 7,721 35,380 - 5,333 - 48,434additionsTotal assets 92,837 139,209 - 44,381 - 276,427Inter-company balances included 30,743 - - 131,377 - 162,120in total assetsTotal consolidated assets 123,580 139,209 - 175,758 - 438,547 Bwana / Lonshi Operation (BLO), Kansanshi Copper / Gold Operation (KCO), GuelbMoghrein Project (GMP), Corporate Development and Administration and Other (CDA) Segmented InformationFor six months ended June 30, 2005 and 2004(expressed in thousands of US dollars)(unaudited) For the six months ended June 30, 2005, segmented information is presented as follows: BLO KCO GMP CDA Inter-segment Total $ $ $ $ $ $ Revenues 83,282 45,063 - 3,875 (7,523) 124,697Segment profit (loss) 28,660 16,709 - 10,856 - 56,225 Property, plant and equipment 9,523 43,112 11,771 12 - 64,418additionsTotal assets 192,566 373,949 22,213 212,127 - 800,855 Inter-company balances includedin total assets (83,886) - - (155,036) - (238,922)Total consolidated assets 108,680 373,949 22,213 57,091 - 561,933 For the six months ended June 30, 2004, segmented information is presented as follows: BLO KCO GMP CDA Inter-segment Total $ $ $ $ $ $ Revenues 51,805 - - 2,010 (2,238) 51,577Segment profit (loss) 14,506 - - (3,726) - 10,780 Property, plant and equipment 11,945 70,077 - 7,646 - 89,668additionsTotal assets 92,837 139,209 - 44,381 - 276,427 Inter-company balances includedin total assets 30,743 - - 131,377 - 162,120Total consolidated assets 123,580 139,209 - 175,758 - 438,547 Bwana / Lonshi Operation (BLO), Kansanshi Copper / Gold Operation (KCO), GuelbMoghrein Project (GMP), Corporate Development and Administration and Other (CDA) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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