Katanga Q4 loss on suspended cobalt sales, higher costs

Katanga Mining (TSX: KAT; US-OTC: KATFF) lost $116 million in 2018’s fourth quarter to end the year with $13.4 million in gross profit, a result of temporary cobalt sale suspensions, higher reagent costs at its Luilu metallurgical plant and increased mine infrastructure and support costs. The company recorded a $52.8 million fourth quarter loss in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) compared to a $100.7 million gain in the previous quarter. However, it still earned more than $215 million in adjusted EBIDTA on the year, compared to a loss of $382 million in 2017. The company’s costs rose from $368 million in 2018’s third quarter to $460 million in 2018’s fourth quarter, and from $31 million in 2017 to $1.2 billion in 2018. Underground mining costs fell slightly in the 2018’s quarter compared to its third quarter, but most other production costs rose. Continue reading at The Northern Miner.