Katanga Q1 losses widen

JOHANNESBURG (miningweekly.com) – TSX-listed Katanga Mining has widened its net loss attributable to shareholders for the first quarter of the year.

The group, which operated a copper-cobalt project in the Democratic Republic of Congo, posted a net loss of $118.9-million during the three months to March 31, a significant increase on the loss of $28.4-million in the first quarter of 2015.

The company’s loss before interest, taxes, depreciation and amortisation doubled from $41.8-million in the first quarter of 2015 to $86.5-million in the quarter under review.

Katanga said profitability for the period was impacted by quality discounts of $25.4-million on the finalisation of outstanding 2015 sales resulting in negative sales amounts; $3.1-million in restructuring costs; and the cessation of borrowing cost capitalisation in the prior corresponding period as the Phase 5 expansion project was completed, resulting in an amended loan facility interest expense of $74.2-million for the quarter under review.