Faced with technical problems,
Construction of the US$135.4-million cobalt processing plant, which is 63%-owned by Banff and 37%-owned by the Ugandan government, was completed in late June and, so far, has produced 56 tonnes of cobalt cathode grading 99.4% to 99.6% cobalt.
However, inadequate air dispersal to bacteria in the bio-oxidation tanks is reducing the rate of cobalt dissolution and recovery. Banff estimates that re-engineering of air spargers and agitators will last four months.
Also, a manufacturing defect was discovered in all three of the power plant’s turbines, resulting in the shutdown of two turbines and reduced output from the third. Recasting the flawed turbine runners will take roughly six months; in the interim, power is being supplied by four on-site diesel generators and the Ugandan power grid.
During the nine months ended March 31, Banff incurred a loss of US$325,843 (or 1 cents per share), compared with a loss of US$424,460 (1 cents per share) in the corresponding period of the previous year.
Construction loan drawdowns for the period totalled US$48.6 million, raising long-term debt to US$61.2 million.
Dan Desjardins has replaced Charles Main as Banff’s chief financial officer, though Main remains a director. Louis Mikulic resigned as director, having been replaced by Adrian Molinari.
Banff is a subsidiary of
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