On Friday, the 23rd of August 2019, one of the largest cobalt and copper mine in Congo, Tenke Fungurume SA, owned by China Molybdenum, released its quarterly earnings’ report which missed an analysts’ estimate by a wide margin, while the 80% China Molybdenum-owned Tenke Fungurume SA had also sent a letter to its employees saying that the company was operating at a loss.
Nonetheless, in its quarterly earnings’ report, one of the biggest mining entities of the Democratic Republic of Congo, Tenke Fungurume accused a lower cobalt and copper price hovering near their multi-month lows alongside a newly-introduced heavier tax burden for mining companies in Congo behind its miss of output target for the first half of the year as well.
Aside from a lower metal price and a heavier tax burden, officials of Tenke Fungurume had also been quoted saying during release of its earnings’ report on Friday (August 23rd) that power failure issues, faulty production equipment alongside a diminishing ore grade had contributed to the latest shortcomings of China’s Molybdenum-owned Tenke Fungurume SA.
Meanwhile, adding that the company had been operating at a loss, Molybdenum management had sent a letter to its employees dated August 16th saying, “The company is in a deficit zone,” while Tenke Fungurume had also acknowledged the shortfall saying on Friday (August 23rd) “some mining companies are reducing or stopping overall production to cope with the current situation. ”