Q1 resultsMercator Reports First Quarter Results and Provides Construction Update
KINGMAN,AZ, May 14 /CNW/ - Mercator Minerals Ltd. today announced operatingincome for the quarter was $3,600,255 or $0.05 per share, compared with$3,724,728 or $0.05 per share for the corresponding period in 2007.Earnings before interest, taxes, depreciation and amortization("EBITDA") for the quarter were $3.32 million compared to $2.33 millionfor the corresponding quarter in 2007.
For the first quarter of2008, copper production totaled 2.4 million pounds, and with warmerweather a new monthly production record was set at 1.1 million poundsproduced in April. Construction continues with significant progress:the bulk of the concrete work is complete with mechanical installationin full swing, and a majority of the equipment is on site includingthree of the four ball mill shells. The final shell is in Arizona andis due to arrive shortly. The ball mill foundations are complete.
Additionally,during period, bull gear alignment commenced and the north and southreclaim tunnels mechanical installation commenced. The main stackersupport pier construction and concentrate thickener foundation work wascompleted with steel tank erection is underway. Four of five rougherflotation tanks were set, with operating mechanisms installationunderway. Structural steel installation of the copper cleaner flotationcells was completed with all cells in place.
The foundation andmotor base for Ball mill number 4 were completed, with the MCC buildingconstruction in progress. The MCC foundation for the flotation buildingwas completed during the quarter, with the flotation area pump bases80% complete. The tower Mill installation, the lime silo, the tailingsdrop box and pressure reducing station site prep were also completed,
Subsequentto the end of the period, the tower crane was certified for operationand the crusher area excavation was complete and the foundation workcommenced. Blockwork on the MCC building was completed.
Currently,the moly cells and the reclaim conveyors are in the process of beingset, and the crusher foundations are due to be poured shortly. Thewater system upgrade is currently underway and due to be completedshortly, with the expansion project on track for a late summer millstart up.
"Mercator continues its aggressive growth strategy,with strong SX/EW copper production at its existing Mineral Parkoperations providing strong cash flow, and construction of the Phase 4copper-molybdenum milling operation on track for a late summer millstart up," said Michael L. Surratt, President and CEO.
Financial Highlights for the Three Months ended March 31, 2008
- Revenues from copper sales and sale of landscaping materials for the
three month period ended March 31, 2008 of $7,737,294 compared to
$7,625,546 for the corresponding period in 2007;
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") for the period was $3.32 million compared to
$2.33 million for the corresponding quarter in 2007;
- Copper production of 2,472,688 pounds for the three month period
ended March 31, 2008, compared to the 2,638,210 pounds for the
quarter ended March 31, 2007, maintaining a steady level of copper
production established during the last half of 2006, while continuing
the construction of the Phase 4 expansion at Mineral Park, the
Company;
- Continued cash flow from operations during the construction of the
Phase 4 expansion;
- Operating Income for the quarter was $3,600,255 or $0.05 per share,
compared with $3,724,728 or $0.05 per share for the corresponding
period in 2007;
- Net loss for the three month period ended March 31, 2008 (during the
construction of the Phase 4 expansion) of $1,091,244 compared to a
net loss of $4,596,790 for the corresponding period in 2007.
- Average realized price for copper sales during the period was
$3.06 per pound compared to $2.84 per pound for the corresponding
period in 2007.
Allfinancial information contained herein should be read in conjunctionwith the Company's Management Discussion and Analysis and unauditedfinancial statements for the period ended March 31, 2008 and theManagement Discussion and Analysis and Audited consolidated financialstatements for the years ended December 31, 2007 and 2006 and relatednotes thereto available under the Company's profile on www.sedar.com.
Mercator Minerals Ltd.
Mercatoris a copper producer that owns and operates the Mineral Parkcopper/molybdenum mine in Arizona, with a corporate strategy focused onmaximizing the production potential of the Mineral Parkcopper-molybdenum deposit and growing through mergers and acquisitions.Mercator is in an advanced stage of construction of themolybdenum-copper expansion at Mineral Park. At full capacity, theMineral Park mine average annual production during the first 10 yearsis forecast to be approximately 56.4 million pounds of copper, 10.3million pounds of molybdenum and 0.6 million ounces of silver.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
President
Thispress release contains certain forward-looking statements, whichinclude estimates, forecasts, and statements as to management'sexpectations with respect to, among other things, the size and qualityof the Company's mineral reserves and mineral resources, futureproduction, capital and mine production costs, demand and marketoutlook for commodities, and the financial results of the Company.These forward-looking statements involve numerous assumptions, risksand uncertainties and actual results may vary.
Factors that maycause actual results to vary include, but are not limited to, changesin commodity and power prices, changes in interest and currencyexchange rates, inaccurate geological and metallurgical assumptions(including with respect to the size, grade and recoverability ofmineral reserves and resources), unanticipated operational difficulties(including failure of plant, equipment or processes to operate inaccordance with specifications, cost escalation, unavailability ofmaterials and equipment, delays in the receipt of government approvals,industrial disturbances or other job action, and unanticipated eventsrelated to health, safety and environmental matters), political risk,social unrest, and changes in general economic conditions or conditionsin the financial markets. These risks are described in more detail inthe Annual Information Form of the Company. The Company does not assumethe obligation to revise or update these forward-looking statementsafter the date of this report or to revise them to reflect theoccurrence of future unanticipated events, except as may be requiredunder applicable securities laws.
For a more completediscussion, please refer to the Company's audited financial statementsand MD&A for the year ended December 31, 2007 on the SEDAR websiteat www.sedar.com.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.