Iberian Minerals Corp. (TSX VENTURE:IZN) today announced financial and operating
results for the three and nine month periods ended September 30, 2012, with
comparative figures for the three and nine month periods ended September 30,
2011. The condensed interim consolidated financial statements and related notes,
and Management Discussion and Analysis may be found on www.sedar.com. Unless
stated otherwise, all reported figures are in U.S. dollars. The Company reported
net loss of $33.24 million for Q3 2012, representing a loss of $0.07 per share.
Financial highlights:
Three months ended September 30, 2012
-- Recorded net loss of $33.24 million or $(0.07) per registered share
which included:
-- Sales of $115.85 million and gain after cost and expenses of mining
operations of $16.26 million;
-- A realized gain of $2.67 million on commodity hedges (included in
sales) which contributed to the gross gain;
-- An unrealized non-cash loss of $41.92 million on derivative
financial instruments outstanding, principally as a result of
commodity hedging positions in copper and silver.
-- Cash flow provided by operations before changes in working capital items
was $28.47 million.
Nine months ended September 30, 2012
-- Recorded net loss of $20.07 million or $(0.04) per registered share
which included:
-- Sales of $326.63 million and gain after cost and expenses of mining
operations of $54.13 million;
-- A realized loss of $8.76 million on commodity hedges (included in
sales) which partly net off the gross gain;
-- An unrealized non-cash loss of $28.21 million on derivative
financial instruments outstanding, principally as a result of
commodity hedging positions in copper and silver.
-- Cash flow provided by operations before changes in working capital items
was $94.51 million.
Operational highlights - MATSA:
Three months ended September 30, 2012
-- MATSA processed 527,430 tonnes of ores in 2012 versus 518,682 tonnes of
ores in 2011 (increase of 8,748 tonnes or 1.7%).
-- Produced 28,689 DMT of copper concentrate (2011 - 28,707 DMT), 11,885
DMT of zinc concentrate (2011 - 18,260 DMT) and 2,162 DMT of lead
concentrate (2011 - 7,280 DMT). Contained metal production was 6,541 FMT
of copper (2011 - 6,638 FMT), 5,338 FMT of zinc (2011 - 8,632 FMT), 0,38
FMT of lead (2011 - 1,217 FMT) and 177,640 ounces of silver (2011 -
235,549 ounces).
-- The Cash Operating Cost (non-IFRS measure - refer to section 6) was
$1.52 per payable pound of copper (2011 - $1.56 per payable pound of
copper). Reduction in Cash Operating cost in 2012 was due to a reduction
in direct cost (US$23,68 million in 2012 versus US$25,78 in 2011), with
similar copper production levels but significantly net off by lower by-
credits of lead, Zinc and silver (US$9,99 million in 2012 versus
US$11,69 in 2011).
Nine months ended September 30, 2012
-- MATSA processed 1,606,960 tonnes of ore in 2012 versus 1,499,209 tonnes
of ore in 2011 (increase of 107,750 tonnes or 7.2%).
-- Produced 85,885 DMT of copper concentrate (2011 - 84,064 DMT), 46,916
DMT of zinc concentrate (2011 - 50,893 DMT) and 13,483 DMT of lead
concentrate (2011 - 23,525 DMT). Contained metal production was 19,829
FMT of copper (2011 - 18,916 FMT), 21,936 FMT of zinc (2011 - 24,390
FMT), 3,240 FMT of lead (2011 - 4,216 DMT) and 707,085 ounces of silver
(2011 - 725,101 ounces).
-- The Cash Operating Cost was $1.28 per payable pound of copper (2011 -
$1.67 per payable pound of copper). Year-to-date Cash Operating cost was
substantially reduced in 2012. Driver for the reduction is a reduction
on direct cost (US$69,83 million in 2012 versus US$76,94 in 2011) with
higher copper production levels.
-- During the nine months ended September 30, 2012, the Company terminated
an agreement with Cadillac Venture Inc. which extinguishes their 90%
interest on 14 of MATSA's properties located in the Iberian Pyrite Belt
of southern Spain. The consideration for the transaction was CAD$2.50
million. The transaction was accepted by TSX Venture Exchange. As of
September 30, 2012, the transaction was paid.
Operational - CMC:
Three months ended September 30, 2012
-- The average copper ore grade was 0.89% in 2012 versus 1.05% in 2011.
-- CMC processed 627,929 tonnes of ore in 2012 versus 597,139 tonnes of ore
in 2011 (increase of 30,790 tonnes or 5.16%).
-- Copper concentrate production in 2012 was 21,733 DMT versus 24,551 DMT
in 2011 (decrease of 2,818 DMT or 11.47%).
-- Contained copper production in 2012 was 5,061 FMT versus 5,688 FMT
tonnes in the prior year (decrease of 627 FMT or 11.02%).
-- The Cash Operating Cost in 2012 was $2.14 per payable pound of copper
versus prior year of $1,19. Higher Cash Operating Cost in 2012 are
driven by (i) an increase in operating cost mainly due to FX rate of
Nuevos Soles versus USD and higher wages cost and (ii) the impact of
lower head grade levels (from 1.05% in 2011 to 0.89% in 2012).
Nine months ended September 30, 2012
-- The average copper ore grade was 0.93% in 2012 versus 1.09% in 2011.
-- CMC processed 1,854,031 tonnes of ore in 2012 versus 1,769,167 tonnes of
ore in 2011 (increase of 84,864 tonnes or 4.8%).
-- Copper concentrate production in 2012 was 67,399 DMT versus 72,428 DMT
in 2011 (decrease of 5,029 DMT or 6.4%).
-- Contained copper production in 2012 was 15,586 FMT versus 17,387 FMT in
the prior year (decrease of 1,801 FMT or 10.36%).
-- The Cash Operating Cost in 2012 was $1.89 per payable pound of copper
versus prior year of $1.12, driven by decrease in head grades of copper
in 2012 (from 0.93% in 2011 to 1.09% in 2012).
Summarized Financial Results
The following table presents a summarized Statement of Operations for the three
and nine months ended September 30, 2012 with comparatives for the three and
nine months ended September 30, 2011.
Three months ended Nine months ended
September 30, September 30,
----------------------------------------------------------------------------
(thousands of U.S. Dollars) 2012 2011 2012 2011
----------------------------------------------------------------------------
$ $ $ $
Gross sales 113.177 112.533 335.395 354.509
Realized gains on derivative
financial instruments held
for trading 2.673 (52.423) (8.763) (171.027)
Sales 115.850 60.110 326.632 183.482
Costs and expenses of mining
operations 99.589 84.196 272.501 237.499
----------------------------------------------------------------------------
Gross gain / (loss) 16.261 (24.086) 54.131 (54.017)
Expenses
Administrative expenses and
other 2.383 1.876 8.012 4.947
Exploration and evaluation
expenditures 10.055 4.816 26.973 4.816
Foreign exchange (gain) loss 737 (4.770) 2.122 (1.607)
Unrealized gain on
derivative instruments 41.919 (164.216) 28.213 (292.656)
----------------------------------------------------------------------------
Total expenses (other
income) 55.094 (162.294) 65.320 (284.500)
Operating income (38.833) 138.208 (11.189) 230.483
Net finance costs 2.607 (4.490) 4.447 3.783
----------------------------------------------------------------------------
Income before taxation (41.440) 142.698 (15.636) 226.700
Current income tax expense 3.337 (931) 7.067 150
Future income tax expense (11.536) 20.042 (2.635) 25.003
----------------------------------------------------------------------------
Net income (33.241) 123.587 (20.068) 201.547
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic earnings per share ($) (0,07) 0,27 (0,04) 0,51
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted earnings per share
($) (0,06) 0,26 (0,04) 0,49
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Key operating
statistics
CMC:
CMC operating
statistics
------------------- ------------------------ ----------------------
Periods ended Three months Nine months
September 30, Unit 2012 2011 2012 2011
------------------------------------------------------------------------
Ore mined t 629.048 608.008 1.903.030 1.787.493
Ore processed t 627.929 597.139 1.854.031 1.769.167
Copper ore grade % 0,89 1,05 0,93 1,09
Concentrate grade % 23 23 23 24
Copper recovery
rate % 90 91 90 90
Copper concentrate DMT 21.733 24.551 67.399 72.428
Copper contained in
concentrate FMT 5.061 5.688 15.586 17.387
Gold contained in
concentrate oz 3.104 3.543 9.305 10.574
Silver contained in
concentrate oz 74.191 79.404 220.373 240.667
Payable copper
contained in
concentrate FMT 4.819 5.424 14.848 16.588
Payable gold
contained in
concentrate oz 2.788 3.207 8.380 9.574
Payable silver
contained in
concentrate oz 66.408 71.213 197.532 215.625
------------------------------------------------------------------------
Cash Operating Cost
per lb of payable
copper USD $ 2,14 $ 1,19 $ 1,89 $ 1,12
------------------------------------------------------------------------
MATSA:
MATSA operating
statistics
---------------------- ---------------------- ----------------------
Periods ended Three months Nine months
September 30, Unit 2012 2011 2012 2011
------------------------------------------------------------------------
Copper ore
Ore mined t 287.155 257.205 839.624 878.166
Ore processed t 283.965 274.240 838.959 867.343
Copper ore grade % 1,89 2,20 2,00 2,20
Concentrate grade % 23 23 23 22
Copper recovery rate % 85 86 86 86
Copper concentrate DMT 20.074 22.601 62.371 72.859
Copper contained in
concentrate FMT 4.547 5.184 14.256 16.336
Silver contained in
concentrate oz 60.758 61.993 239.504 220.676
Payable copper
contained in
concentrate FMT 4.346 4.958 13.633 15.608
Payable silver
contained in
concentrate oz 41.396 40.193 179.346 163.966
Polymetallic ore
Ore mined t 275.719 230.785 799.426 645.342
Ore processed t 243.465 244.442 768.001 631.866
Zinc ore grade % 3,90 5,39 4,34 5,71
Zinc concentrate grade % 45 47 47 48
Zinc recovery rate % 57 66 68 68
Copper ore grade % 1,19 1,17 1,18 1,10
Copper concentrate
grade % 23 24 24 23
Copper recovery rate % 69 51 69 38
Lead ore grade % 0,98 1,55 1,24 2
Lead concentrate grade % 18 18 23 18
Lead recovery rate % 16 33 34 39
Zinc concentrate DMT 11.885 18.260 46.916 50.893
Copper concentrate DMT 8.615 6.106 23.514 11.205
Lead concentrate DMT 2.162 7.280 13.483 23.525
Zinc contained in
concentrate FMT 5.338 8.632 21.936 24.390
Copper contained in
concentrate FMT 1.994 1.454 5.573 2.580
Lead contained in
concentrate FMT 379 1.217 3.240 4.216
Silver contained in
concentrate oz 116.882 173.556 467.581 504.425
Payable zinc contained
in concentrate FMT 4.387 7.171 18.182 20.321
Payable copper
contained in
concentrate FMT 1.908 1.393 5.338 2.468
Payable lead contained
in concentrate FMT 314 999 2.836 3.510
Payable silver
contained in
concentrate oz 70.128 97.776 281.620 303.121
------------------------------------------------------------------------
Cash Operating Cost
per lb of payable
copper USD 1,52 1,56 1,28 1,67
------------------------------------------------------------------------
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 2.4 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 2.2 million tonnes per year underground mine and concentrator that
produces copper, zinc and lead concentrates that also contain gold and silver.
Note 1 - The Cash Operating Cost per pound of payable copper is a non-IFRS
performance measure. It includes cash operating costs, including treatment and
refining charges ("TC/RC"), freight and distribution costs, and is net of
by-product metal credits (zinc, gold and silver). The Cash Operating Cost per
pound of payable copper indicator is consistent with the widely accepted
industry standard established by Brook Hunt and is also known as the C1 cash
cost.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Iberian Minerals Corp.
416-815-8558
info@iberianminerals.com
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