Iberian Minerals Announces New Hedging for Condestable
April 06 2010 - 4:30PM
Marketwired
Iberian Minerals Corp. (TSX VENTURE: IZN) today announced that its
subsidiary, Compania Minera Condestable S.A. ("Condestable"), has
executed required hedging in connection with the US$ 55 million
senior secured debt facility which was completed on March 31, 2010.
The hedging has been executed using a zero cost collar hedging
strategy whereby positions have been entered into to achieve a
minimum hedge price and a maximum hedge price. This ensures that
Condestable will realize a minimum price of $6,500 per FMT of
copper and market price participation up to $8,760 per FMT of
copper. There is no cost to the Company for this collar hedging
strategy.
This hedging requirement is at a reasonable level of
approximately 25% of forecast payable copper production from
February 2012 to March 2013. During this period Condestable will
realize the market copper price on the hedged copper volume so long
as the market copper price is within the collar price range. The
remaining 75% un-hedged copper volume will be fully exposed to
copper market price fluctuations. The Company has no plans to hedge
additional copper production at Condestable.
Existing and proposed hedging is set out in the following
table:
----------------------------------------------------------------------------
2010 2010 2011 2011 2012 2012 2013 TOTAL
S1 S2 S1 S2 S1 S2 S1
Existing Hedging
Volumes
----------------------------------------------------------------------------
Cu Forwards FMT 10,200 10,275 10,275 10,350 1,750 42,850
Cu price USD/t 4,419 4,419 3,583 3,408 3,408 3,933
----------------------------------------------------------------------------
New Collar Hedging
Volumes
Copper
---------------
Volume FMT 2,500 3,000 1,500 7,000
Minimum price USD/t 6,500 6,500 6,500
Maximum price USD/t 8,760 8,760 8,760
----------------------------------------------------------------------------
Cu % hedged 82% 83% 83% 83% 34% 24% 24% 62%
----------------------------------------------------------------------------
About Iberian Minerals Corp.
Iberian Minerals Corp. is a Canadian listed global base metals
company with interests in Spain and Peru. The Condestable Mine,
located in Peru approximately 90 km south of Lima operates at 2.2
million tonnes per year producing copper, and associated silver and
gold in a concentrate. The Aguas Tenidas Mine is in the Andalucia
region of Spain approximately 110 km north-west of Seville and
operates a 1.7 million tonnes per year underground mine and
concentrator that produces copper, zinc and bulk copper/lead
concentrates that also contain gold and silver.
FORWARD LOOKING STATEMENTS:
This news release contains certain "forward-looking statements"
and "forward-looking information" under applicable securities laws.
Except for statements of historical fact, certain information
contained herein constitutes forward- looking statements.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", and other similar words, or statements
that certain events or conditions "may" or "will" occur. Forward
looking information may include, but is not limited to, statements
with respect to the future financial or operating performances of
the Corporation, its subsidiaries and their respective projects,
the timing and amount of estimated future production, estimated
costs of future production, capital, operating and exploration
expenditures, the future price of copper, gold and zinc, the
estimation of mineral reserves and resources, the realization of
mineral reserve estimates, the costs and timing of future
exploration, requirements for additional capital, government
regulation of exploration, development and mining operations,
environmental risks, reclamation and rehabilitation expenses, title
disputes or claims, and limitations of insurance coverage.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are based on
a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. Many of these assumptions are based on
factors and events that are not within the control of the
Corporation and there is no assurance they will prove to be
correct. Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
changes in market conditions and other risk factors discussed or
referred to in the section entitled "Risk Factors" in the
Corporation's annual information form dated March 29, 2010.
Although the Corporation 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 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. The
Corporation undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Iberian Minerals Corp. Laura Sandilands Investor
Relations and Corporate Communications 416-815-8558
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