Katanga anticipates delay in reporting second
quarter financial results
ZUG, SWITZERLAND, July 31, 2017 /CNW/ - Katanga Mining
Limited (TSX: KAT) ("Katanga" or the
"Company") today announces that the independent directors of
the Company's Board of Directors, being Robert G. Wardell, Terry
Robinson and Hugh Stoyell
(the "Independent Directors"), are conducting a review of
certain of the Company's past accounting. The Independent Directors
have concluded that certain of the Company's historical financial
statements and related management's discussion and analysis
("MD&A") will likely require restatement.
The Independent Directors are working with Management, Katanga's
external auditors, Deloitte & Touche, the Company's outside
legal counsel and outside accounting advisors to review historical
accounting relating to the production of copper cathode, copper
concentrates and stockpiled ore, which may have an impact on the
occurrence, classification and valuation of inventories and
property, plant and equipment. The review is not expected to affect
the anticipated timing for the commissioning of the WOL
project.
The conduct of the review and analysis of its conclusions are
expected to cause the preparation and filing of the Company's
unaudited interim financial statements for the three and six months
ended June 30, 2017 and accompanying
MD&A ("Q2 Filings") to be delayed beyond the August 14, 2017 deadline under National
Instrument 51-102 – Continuous Disclosure Requirements.
The Company has informed staff of the Ontario Securities
Commission (the "OSC") about its review and will be applying to the
OSC pursuant to Part 4 of National Policy 12-203 ("NP 12-203") for
a Management Cease Trade Order ("MCTO") pending the filing of the
Q2 Filings and resolution of the restatement of certain historical
financial statements by the Company. If an MCTO is issued, the
Company intends to satisfy the provisions of the "alternative
information guidelines" as set out in NP 12-203, including the
requirement to file bi-weekly status reports in the form of news
releases containing prescribed updating information, until the Q2
Filings are made. An MCTO would not generally affect the ability of
persons who are not directors, officers or insiders of the Company
to trade in securities of the Company. There can be no assurance
that an MCTO will be issued.
In light of the proposed MCTO and in conjunction with the
preparation of the Q2 Filings, the Company has established a
blackout on trading by directors, officers and other insiders of
Katanga, and intends to continue the blackout until the Q2 Filings
and any restated financial statements have been filed.
Unless circumstances otherwise require, Katanga will provide
further comment only when the review is completed, and the Board
receives and considers the Independent Directors' findings and
recommendations.
About Katanga Mining Limited
Katanga Mining
Limited operates a major mine complex in the Democratic Republic of Congo producing refined
copper and cobalt. The Company has the potential to become
Africa's largest copper producer
and the world's largest cobalt producer. Katanga is listed on the
Toronto Stock Exchange under the symbol KAT.
Forward Looking Statements
This press
release may contain forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs
and assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements. All of the
Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although the
Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the
forward-looking statements. The key assumptions that have been made
in connection with the forward-looking statements include the
following: the Independent Directors' review of certain past
accounting, the outcome, analysis or conclusions of the Independent
Directors' review, the potential delay in filing the Q2 Filings,
the potential need to restate certain historical financial
statements of the Company, the issuance by the OSC of an MCTO or
any other action to be taken by securities regulatory authorities
in light of the review, the operations of the Company during the
production suspension and timeline for the recommencement of
operations remaining consistent with management's expectations,
there being no significant disruptions affecting the operations of
the Company whether due to labour disruptions, supply disruptions,
power disruptions, rollout of new equipment, damage to equipment or
otherwise; permitting, development, operations, expansion and
acquisitions at the Project being consistent with the Company's
current expectations; continued recognition of the Company's mining
concessions and other assets, rights, titles and interests in the
DRC; political and legal developments in the DRC being consistent
with its current expectations; the continued provision or
procurement of additional funding from Glencore for operations, the
completion of the T17 Underground Mine, the WOL Project and the
Power Project (as defined in the Company's Annual Information Form
for the year ended December 31, 2016
dated March 31, 2017); new equipment
performs to expectations; the exchange rate between the US dollar,
South African rand, British pounds, Canadian dollar, Swiss franc,
Congolese franc and Euro being approximately consistent with
current levels; certain price assumptions for copper and cobalt;
prices for diesel, natural gas, fuel oil, electricity and other key
supplies being approximately consistent with current levels;
production, operating expenses and cost of sales forecasts for the
Company meeting expectations; the accuracy of the current ore
reserve and mineral resource estimates of the Company (including
but not limited to ore tonnage and ore grade estimates); and labour
and material costs increasing on a basis consistent with the
Company's current expectations.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, unfavourable conclusions of the Independent
Directors' review, unforeseen action taken by the OSC or
other securities regulatory authorities, the unforeseen delays or
changes to the WOL Project; actual results of current exploration
activities; actual results and interpretation of current
reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined;
future prices of copper and cobalt; possible variations in ore
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
exploration, development or construction activities, delays due to
strikes or other work stoppage, both internal and external to the
Company as well as those factors disclosed in the Company's current
annual information form and other publicly filed documents.
Although Katanga has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events, or otherwise, except in accordance with
applicable securities laws.
SOURCE Katanga Mining Limited