The company planned on quadrupling its own output of the metal to 135 000 t/y in 2011, and would spend some $400-million to build two big, new projects to realise this, CEO Charles Needham stated.

The company had already grown its copper production in the year ended June 30 by 48%, to 25 000 t.

Needham said that the company would spend in the order of $200-million to bring each of its Democratic Republic of Congo- (DRC-) based Kinsende and Musonoi projects into production.

It was also spending $200-million to $220-million on the second phase of its Ruashi project, which included a solvent extraction and electrowinning plant, which was higher than the $180-million Metorex had initially budgeted.

The escalation was owing to transport costs, steel prices and delays,besides other factors.

“No doubt, it has been a learning curve in dealing in the DRC,” Needham commented.

Kinsende, an old mine that Metorex was refurbishing, would begin producing in 2010, while Musonoi would start metal production in 2011.

By 2012, the company forecast cobalt production of 6 000 t/y to 8 000 t/y.

Presenting Metorex’ results for the year ended June 30, Needham faced questions from analysts wishing to know what to expect in terms of divi- dends.

Needham said that the company had a policy to pay out dividends of up to 30% of free cash flow, but that it was currently in a capital-intensive growth phase and would rather invest cash into growth.

He quipped that the miner had not annulled this policy, but had only yet to implement it.

Metorex had the desire and policy to pay dividends, but would not act until its big projects had been commissioned. “Our big spending will stabilise,” said Needham.

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