TIDMMIRL
RNS Number : 0318D
Minera IRL Limited
10 May 2012
Minera IRL Announces First Quarter 2012 Financial Results
London and Toronto, 10 May 2012: Minera IRL Limited ("Minera
IRL" or the "Company"), (TSX:IRL) (AIM:MIRL) (BVL:MIRL) the Latin
America gold mining company, is pleased to announce its unaudited
first quarter results for the 3 month period ended 31 March 2012
("Q1 2012").
Q1 2012 Highlights (all $ denominates US dollars unless
otherwise stated):
Financial
-- Revenue up 1.3% to $11.1 million (Q1 2011: $10.9 million)
-- EBITDA down 8.5% to $4.4 million (Q1 2011: $4.7 million)
-- Profit after tax $1.7 million, up 35% million from $1.3 million in Q1 2011
-- Gold sales down 17% to 6,515 ounces (Q1 2011: 7,883 ounces).
Average realised gold price up 22% to $1,699 per ounce (Q1: $1,389
per ounce)
-- Strong cash balance of $30.3 million at end of quarter (Q1 2011: $30.7 million)
Operational
-- Gold production from the Corihuarmi Gold Mine ahead of
management expectations at 6,747 ounces compared with 7,952 ounces
in the same period in 2011 ("Q1 2011"). Corihuarmi site cash
operating costs US$502 per ounce, (Q1 2011: $401 per ounce)
-- Completion of a positive feasibility study on the Don Nicolas
Project in Patagonia. Based on a gold price of US$1,250/oz, the
study indicates a NPV (7% real) of US$40 million (pre-tax) and
US$22 million (post tax); an IRR (real) of 34.6% (pretax) and 22.8%
(post tax) and a payback period of 2.0 years (post tax). Permitting
for the project is about to commence
-- Excavation of the exploration tunnel at the Ollachea Project
commenced following the establishment of access to the portal site.
Feasibility study on track for second half 2012 completion
Other
-- Completed a successful equity raising for gross proceeds of
approximately CAD33.1 million by issuing 29,260,000 ordinary shares
at CAD1.13 per share (equivalent to GBP72p based on exchange rate
at pricing)
Summary table:
Quarter to Quarter to
31 March 31 March
2012 2011
------------------------------- ----------- -----------
Gold production 6,747 oz 7,952 oz
------------------------------- ----------- -----------
Gold sold 6,515 oz 7,883 oz
------------------------------- ----------- -----------
Sales revenue $11.1M $10.9M
------------------------------- ----------- -----------
Average sales price $1,699 per $1,389 per
oz oz
------------------------------- ----------- -----------
Corihuami site cash operating $501 per $ 401per
costs oz oz
------------------------------- ----------- -----------
Gross Profit $5.4M $4.5M
------------------------------- ----------- -----------
EBITDA $4.4M $4.7M
------------------------------- ----------- -----------
Profit before tax $3.1M $2.5M
------------------------------- ----------- -----------
Profit after tax $1.7M $1.3M
------------------------------- ----------- -----------
Total Income/(Loss) $1.7M $1.1M
------------------------------- ----------- -----------
Commenting on the Q1 results, Courtney Chamberlain, Minera IRL
Limited Executive Chairman, said: "The financial results for the
March 2012 quarter exceeded management's expectations on the back
of a solid performance from our Corihuarmi Gold Mine in Peru. As
previously highlighted, the grade at Corihuarmi will continue to
decline as the mine nears the end of its life of mine around
2015/2016, and we will see further reductions in production
accordingly. However, due to a focus on controlling site operating
costs and maximizing throughput, the mine continues to perform well
and is generating strong cash flows.
"The Company also achieved an important milestone with the
completion of a positive Feasibility Study at the Don Nicolas
Project in Patagonia during the quarter. The subsequent equity
raising places the Company in a strong position to advance the
feasibility study of its Ollachea Project and permit the Don
Nicolas Project. Minera IRL is committed to bringing Don Nicolas
into production by late 2013, as well as advancing the exploration
campaign in Patagonia, yet we will continue to carefully monitor
the investment environment in Argentina in the best interests of
all of its stakeholders."
The full Report & Accounts, including the Management
Discussion and Analysis for the quarter ended 31 March, 2012 are
available from the Company's website www.minera-irl.com and from
SEDAR.
For more information please contact:
Minera IRL
Trish Kent, Vice President, Corporate Relations +511 418 1230
Canaccord Genuity Limited (Nominated Adviser
& Broker, London)
John Prior +44 (0) 20 7523
Adam Miller 8350
finnCap (Co-broker, London)
Geoff Nash (Corporate Finance)
Matthew Robinson (Corporate Finance) +44 (0) 20 7600
Joanna Weaving (Corporate Broking) 1658
RBC Europe Ltd (Co-broker, London)
Stephen Foss +44 (0)20 7653
Martin Eales 4000
Buchanan (Financial PR, London)
Bobby Morse +44 (0)20 7466
James Strong 5000
Minera IRL Limited is the AIM traded, TSX and BVL listed holding
company of precious metals mining and exploration companies focused
in Latin America. Minera IRL is led by an experienced senior
management team with extensive industry experience, particularly
operating in South America. The Group operates the Corihuarmi Gold
Mine and the advanced gold projects Ollachea in Peru and Don
Nicolas in Argentina. For more information, please visit
www.minera-irl.com.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release.
Some of the statements contained in this release are
forward-looking statements, such as estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Since forward-looking statements
address future events and conditions, by their very nature, they
involve inherent risks and uncertainties.
While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our
current judgment regarding the direction of our business, actual
results will almost always vary, sometimes materially, from any
estimates, predictions, projections, assumptions or other future
performance suggestions herein. Except as required by applicable
law or regulation, Minera IRL Limited does not intend to update any
forward-looking statements to conform these statements to actual
results.
Competent Persons Statement
The preparation of the technical information contained herein
was supervised and reviewed by Courtney Chamberlain, Executive
Chairman of the Company, BSc and MSc Metallurgical Engineering, a
Fellow of the Australian Institute of Mining and Metallurgy
(AUSIMM) and Donald McIver, VP Exploration of the Company, MSc
Exploration and Economic Geology, a Fellow of the Australian
Institute of Mining and Metallurgy (AUSIMM), who are recognized as
Qualified Persons for the purposes of National Instrument 43-101,
and who have reviewed and approved the technical information in
this press release.
Quality Assurance and Quality Control Procedures Disclosure
The Company has implemented and maintains a Minera IRL quality
assurance/quality control (QA/QC) protocol on its projects to
ensure best industry practice in sampling and analysis of
exploration and resource definition samples. The insertion of field
duplicates, certified standards and blank samples into the sample
stream form part of the MIRL procedure (these act as an independent
check on contamination, precision and accuracy in the analytical
laboratory).
Assay results are reported once rigorous QAQC procedures have
been approved.
Independent Audit Programs
Towards maintaining compliancy with international standards as
they pertain to the minerals industry resource evaluation and
estimation procedure, MIRL regularly contracts the services of
industry experts to conduct detailed audits of established QAQC
procedures.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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