According to the company's results released this week, production in concentrate increased by 67 percent to 6,910 million tonnes from 4,143 million tonnes in the previous period from ore processed of 738,921 million tonnes. Revenues increased to $42.7 million from $24.7 million in the previous period, but operating cost issues resulting from plant inefficiencies and the processing of oxidic ore resulted in the increased loss. Interim chief executive Jordan Soko said, "Our properties provide tremendous opportunities for growth.
Production in July 2012 is showing some very positive signs since restarting in June 2012 following the failure of the pinion shaft. We are determined to get our mining facilities right so that we can increase our throughput and production to levels that the high quality assets at Mowana, Thakadu and, in due course, Matsitama justify." The company also said it had suspended mining activities at the Mowana openpit mine, to focus on the higher-grade Thakadu openpit. Mining activities will resume at Mowana in early 2013. The Botswana Stock Exchange (BSE) listed mining company last month announced that it has secured an additional loan of P45 million ($6 million) from its controlling shareholder, ZCI Limited. Since the takeover and recapitalisation of African Copper that was completed in August 2009, ZCI has injected $65 million or (P495 million) in the company through interest-bearing loans, with the latest being a $5 million facility availed in May. In January 2012, ZCI also advanced another $2 million to African Copper for working capital requirements. In the three years since the recapitalisation, the company briefly made a profit in 2009 but swung back to losses thereafter after being plagued by numerous challenges, including the cost of mine development and processing costs associated with high oxide ore. Although ZCI has constantly bailed out African Copper throughout the three years, as evidenced by the recent $5 million or (P38 million) loan agreement signed with ZCI, African Copper says it is still committed to executing its business plan in Botswana and ZCI remains a supportive shareholder. "The Company's controlling shareholder ZCI Limited continues to provide its strong support for the Company's operating plan and has confirmed, if necessary, it will continue to make sufficient financial resources available to African Copper to allow it to continue to meet its financial liabilities as they fall due in the normal course of operations."The benefits of the capital expenditure programme are expected to be realised through the remainder of the year and, with greater operating stability, allowing the company to gradually increase throughput and ramp up production," read the statement accompanying the financial results. ZCI has however announced that it is currently conducting a strategic business review which may results in them divest out of the embattled copper miner. Apart from the company's flagship open pit Mowana Mine, African Copper also owns rights to the adjacent Thakadu-Makala deposit. Both deposits are situated on the highly prospective Matsitama belt near Francistown. ACU is the country's second copper and nickel mining company after BCL. A third copper mine, Boseto, is currently being commissioned in Maun.
