March 17, 2009 / 11:50 AM / 10 years ago

UPDATE 1-Anvil Mining posts Q4 loss; seeks additional funding

* Board, management, staff to take 20 pct cut in salaries

* Q4 impacted by $143 million one-time charge

* Says seeking funding of $200 mln to avoid project delays

* Q4 rev fell more than 80 pct

March 17 (Reuters) - Anvil Mining Ltd AVM.TO posted a quarterly loss, slammed by a one-time charge of $143 million, and said it is seeking funding to avoid project delays, and will cut staff salaries by 20 percent.

Anvil said it does not have sufficient cash or debt facilities to fund the completion of the development of the Kinsevere Stage II SX-EW copper processing plant.

The company said it will reduce administration overheads with further restructuring, and its board, senior management, and staff are all taking a 20 percent cut in salaries.

It will also suspend concentrate production, postpone underground development work and initiation of a care and maintenance program at the Dikulushi copper-silver mine in the Democratic Republic of the Congo.

The company posted a loss of $151.2 million, or $2.12 a share, compared with a profit of $21.7 million, or 30 cents a share a year earlier.

“These results reflect the sharp decline in the copper price that took place during the second half of 2008, the global economic slowdown and the response implemented by the company during the fourth quarter of 2008,” Chief Executive Bill Turner said.

Sales fell about 83 percent to $13.9 million.

Shares of the company closed at C$1.07 Monday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Jarshad Kakkrakandy)

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