TORONTO, Dec. 17 /PRNewswire-FirstCall/ -- Inmet Mining Corporation (IMN-TSX) announced today its production objectives for 2009. Our main objective for 2009 is to effectively manage our cash by ensuring efficiencies at our operations, prudence in our capital spending and the successful start of operations at Las Cruces. We believe that our financial position will allow us to both sustain our business and continue to grow. Jochen Tilk, Inmet's President and Chief Operating Officer says "we are pleased our operations have continuously operated in a disciplined fashion maintaining low operating costs. This puts us in the advantageous position to continue operating all our mines and generating positive cash flows in lower metal price environments."
Objectives for 2009 ------------------------------------------------------------------------- Inmet's Cost per share of Inmet's Inmet's Inmet's Inmet's tonne capital share share share share of ore expend- of copper of zinc of gold of ore milled itures production production production milled (C$ per (C$ (tonnes) (tonnes) (ounces) (tonnes) tonne) millions) ------------------------------------------------------------------------- Cayeli 36,800 56,400 - 1,200,000 $81 $22 Pyhasalmi 13,000 22,600 - 1,370,000 41 11 Troilus 6,000 - 132,200 6,170,000 10 - Ok Tedi 31,600 - 109,300 4,550,000 26 26 Las Cruces cathode 26,000 - - 335,000 167(1) 93 Las Cruces ore to smelters(2) 12,200 - - 93,000 90 - Petaquilla - - - - - 94 ------------------------------------------------------------------------- Total 125,600 79,000 241,500 n/a n/a $246 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Costs are elevated because of the ramp-up phase. (2) Production is subject to market conditions. The key assumptions to our 2009 objectives are: Las Cruces ---------- - dewatering and re-injection system (DRS) authorization suspension has been lifted and production commences by March 2009 - operating costs, net of related revenues, and build up of working capital are capitalized until July 1, 2009 (our share estimated at $21 million) - cost per tonne of ore milled is based on direct costs of production and ore milled from July 1, 2009 - our share of ore milled from July 1, 2009 is 242,500 tonnes - our share of copper cathode production from July 1, 2009 is 20,000 tonnes - our share of capital expenditures ($72 million) are mainly for a water treatment plant, the process plant and mine development Petaquilla ---------- - capital expenditures are mainly for drilling (to expand the mineral resource and confirm prospective locations for plant and other facilities), completion of the social and environmental impact assessment and completion of the front end engineering and design study. This work would put us in a position to begin detailed engineering in 2010. Additional update on Las Cruces
There have recently been some positive developments concerning the suspension of the authorization for the DRS at Las Cruces:
- The judge presiding over a criminal investigation of the events that led to the suspension of the DRS authorization provided her consent to re-inject purified water into one of the sectors of the aquifer and we subsequently received approval from CHG to re-inject the water we extract and purify back into that sector of the aquifer. - CHG received the final report from the Spanish Geological Survey (IGME) of its assessment of the technical aspects of the action plan (Global Plan) we submitted to CHG in June 2008 to address CHG's concerns about the integrity of the aquifer. The Global Plan outlined two primary action items - purification of water extracted from the aquifer through a highly efficient reverse osmosis treatment process prior to re-injection back into the aquifer, and the relocation of certain DRS extraction wells and the installation of additional wells to increase dewatering capacity. The IGME report views the Global Plan positively and recommends continuing with its implementation and the lifting of the suspension of the DRS authorization.
We believe that our proposed and implemented measures under the Global Plan fully address the concerns raised by CHG and that there remain no technical obstacles for the suspension to be lifted. We are now awaiting a final decision from CHG regarding lifting of the suspension.
Forward looking information
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.
About Inmet
Inmet is a Canadian-based global mining company that produces copper, zinc and gold. We have interests in four mining operations in locations around the world: Cayeli, Pyhasalmi, Troilus and Ok Tedi. We also have interests in three development properties, Las Cruces, Cerattepe and Petaquilla.
This press release is also available at http://www.inmetmining.com/.
