Phu Bia eyes increased copper production
Phu Bia eyes increased copper production
Phu Bia Mining, one of the largest mining firms in Laos, plans to increase copper and gold production this year thanks to an increased recovery project that yields more concentrate from the ore that is mined.
PanAust, the parent company of Phu Bia Mining announced its 2014 production targets and financial guidance recently.
According to the announcement, at the Phu Kham site, one of Phu Bia's mining operations in Laos, copper in concentrate production is expected to rise to 70,000 tonnes this year.
The increase of copper-in- concentrate production will be made possible due to the recently initiated Increased Recovery Project, which is exceeding design performance.
Copper and gold recoveries in 2014 are expected to rise to over 80 percent and 50 percent respectively despite a head grade of 0.44 percent copper, which is the lowest for the life of the mine, PanAust noted in its annual report.
At Ban Houayxai, another Phu Bia gold mining operation, mill feed is expected to remain above design despite harder transitional ores being scheduled and the benefits of higher silver head grade should largely offset the effect of the increased power draw on operating costs.
The miner estimates consolidated full year 2014 precious metal production of between 60,000oz to 165,000oz gold and approximately 1.2 million ounces of silver in concentrate and doré.
PanAust says earnings before expenses for the 2014 year are expected to be between US$200 million and US$225 million, assuming an average copper price of between US$3.20/lb and US$3.40/lb and a gold price of US$1,300/oz.
The increase in free cash flow will fund br own-fiel d and generative exploration in Laos as well as acquisition and planned study costs for the Frieda River Project in Papua New Guinea, the company said.
PanAust is currently conducting a scheduled review of the Inca de Oro Project in Chile following the completion of resource drilling at the Carmen deposit and after identifying the potential for significant improvements in the cost of power and water supplies.
However, 2014 expenditure on this project will fall significantly with the completion of resource drilling and as the joint venture focuses on engineering and optimisation studies.
PanAust estimates that consolidated 2013 full year copper and gold production will be at the upper end of the guidance ranges of 62,000 tonnes to 65,000 tonnes copper in concentrate, and 160,000 oz to 175,000 oz gold in concentrate and doré.
The company projects that it will earn from US$260 million to US$300 million in 2013, however the lower price of commodities could cause negative impacts on overall company profits.
vientiane times
