Hong Kong-listed Minmetals Resources on Thursday said the acquisition of ASX- and TSX-listed Anvil Mining was just the first step in its strategy to buy more assets.
CEO Andrew Michelmore said that the company continued to identify potential acquisition targets necessary to reach its growth aspirations.
“But these will be disciplined and value-focused acquisitions to grow shareholder value,” Michelmore told shareholders.
Minmetals bought Anvil, which owns the Kinsevere copper mine in the Democratic Republic of Congo, for $1.3-billion.
Meanwhile, Minmetals on Thursday reported net profit after tax of $540.9-million for the full year ended December, up 32.1% on the previous financial year.
The results were driven by significant one-off benefits, including the gain realised by the investment in Equinox Resources, after selling its 4.2% stake in the company, as well as the sale of its trading, fabrication and other operations.
Total earnings before interest and tax was $808.9-million, up 44.5% on the 2010 financial year, while earnings before interest, taxes, depreciation and amortisation declined by 2.2%, to $887.3-million, reflecting the higher level of expenditure on process and system standardisation necessary to support the company’s growth strategy.
Michelmore noted that during the year under review, the company’s mining assets performed within guidance for both production and operating costs. At its Sepon copper and gold operation, nameplate capacity increased from 65 000 t/y to 80 000 t/y following the completion of a copper cathode expansion project.
At its Golden Grove project in Western Australia the miner also started development of its copper openpit, above the existing underground operations, which would deliver an additional 235 000 t of copper concentrate.
Furthermore, the Minmetals board agreed to spend some A$157-million until the end of the third quarter this year on the next phase of the Dugald River zinc project, in Queensland.
Once developed, the project was expected to produce some two-million tons of ore and 200 000 t of zinc in concentrate a year, from an underground mine with an estimated mine life of over 22 years.
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