Mopani Copper Mines Plc (MCM) recorded Net Sales Revenue of K5,388.2 million (US$828.4 million) for the year ended 31st December 2014 (2013:K6, 607.8 million ( US$1,193 million)). The loss after tax as at 31st December 2014 was K52 million (US$8 million) (2013: K199.4 million (US$36 million) profit). The drop in revenue was driven by lower copper prices and higher costs of production.
MCM produced 185,087t of copper (including refined copper from third-parties) during the year ended 31st December 2014 (2013: 212,000t).
MCM has to date spent US$323 million on the Synclinorium Shaft at Nkana, with major milestones completed including achieving a depth of 1,280 metres (design depth is 1,277m), and equipping was in progress. The project remains on schedule for completion by the end of 2015 and will extend the economic life of MCM’s operations by more than 25 years. Further, MCM has spent US$232 million on Mindolo Deeps and US$327 million on the Mufulira Deeps; sinking of which was still in progress. The projects are targeted at sustaining production at 2mtpa, and are expected to extend the life of mine by 20 to 25 years. These projects are all expected to be completed by December 2016.
The future of Mopani depends on its expansion projects but the mine will need to control its costs in view of the low copper prices.
There was no dividends paid during the period under review (2014: Nil).