Frontier Mining doubles revenues as focus now on Benkala
June 30. Proactive Investors UK
By Giles Gwinnett
Copper miner Frontier Mining (LON:FML) nearly doubled revenues in 2013 compared to the previous year and produced 1,702 tonnes from its Benkala mine in Kazakhstan.
But production volumes were not at expected levels due to a deficit of resources at the extraction plant, the firm noted, but added the revenue did cover production costs and overheads.
The loss before tax narrowed to around US$4.5mln from a loss of US$9.5mln in 2012.
Chairman and chief executive Yerlan Aliyev said: “Available resources did not allow us to provide the plant with solution to produce copper at expected volumes, and while battling with financial issues, the company continued optimising technological parameters of operations in challenging weather conditions.
“Management continued searching for new strategic or financial investor within the legal framework of subsoil users in the Republic of Kazakhstan.”
In March, Frontier agreed the sale of its Naimanjal licence in Kazakhstan via the disposal of subsidiary FML Kazakhstan to Union Transnationale Miniere SA (UTM) for US$30million.
The company now intends to focus solely on stabilising operations at its flagship Benkala copper mine and developing the South Benkala resource.
The firm began shipping copper cathode in the first half of 2013. Over the year, the average preliminary cash cost was $3,956 per tonne, while the average sales price was $7,034 per tonne.
Revenue from sales came in at US$10.4 million (2012: Revenue US$5.4mln).
Frontier Mining Limited is a copper exploration and development company with a focus on Kazakhstan. The Company’s main activity is the Benkala Copper Project in North West Kazakhstan, which forms part of the Urals copper gold ore belt. Frontier has a 100% interest in Benkala through its subsidiary KazCopper LLP.