JOHANNESBURG: South African miner Metorex, which is being taken over by Chinese metals group Jinchuan, reported a 155 percent rise in first-half profit on Monday, boosted by strong copper prices and higher output, and said it expected production to remain at current levels.
The company, with operations in the Democratic Republic of Congo (DRC) and Zambia, said adjusted headline earnings per share for the six months to the end of June rose 155 percent to 4.5 US cents. Headline EPS are the main profit gauge in South Africa and exclude certain one-time items.
The figure excludes a non-recurring amortisation charge at its Ruashi mine of 0.6 US cents per share.
Metorex said copper production during the six months rose 5 percent to 26,562 tonnes, while output of cobalt increased by 18 percent to 1,890 tonnes.
"Copper and cobalt production is expected to continue at current levels," the company said in a statement.
"Cost pressures remain at all operating and project development sites and cost reduction measures remain paramount."
Metorex, with a busy project pipeline and potential for other brown-fields expansion, seeks to more than double its current annual copper production of around 50,000 tonnes.
Last week Metorex shareholders voted overwhelmingly in favour of accepting Jinchuan's 9.1 billion rand ($1.29 billion) offer for the company.
The takeover is still subject to regulatory approvals in South Africa, China, Zambia and Democratic Republic of Congo, which the company expects to complete by December.
The mining group will be de-listed from the Johannesburg Stock Exchange after that.
Shares in Metorex are up nearly 60 percent so far this year, compared with a 4.98 percent drop in Johannesburg's All-Share index.
Copyright Reuters, 2010
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