$1.6M earnings Q2: Profits fund LN expansionby this time next year AUN will have started production at the Shafter Mine for three months - can't WAIT
GLTA
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RECORD RESULTS FOR AURCANA Q2, 2011
Aurcana Corp. is providing its unaudited financial results for the second quarter ended June 30, 2011. The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis dated Aug. 12, 2011, together referred to as the financial statements, which have been filed on SEDAR and the company's website. All figures are in United States dollars unless otherwise noted. Join the second-quarter conference call for Aurcana at 4:30 p.m. (EST), Monday, Aug. 15, 2011; details are at the end of this news release.
Highlights for the quarter ended June 30, 2011:
- Net revenues increased 158 per cent to $12.4-million compared with $4.8-million for the second quarter of 2010.
- Earnings from mining operations were $5.3-million compared with $600,000 for the second quarter of 2010.
- Operating cash flow before movements in working capital items was $4.0-million (2010 -- deficit of $1.5-million).
- Milled tonnes processed increased 50 per cent for a total of 260,931 tonnes during the six months ended June, 2011 (2010 -- 173,208 tonnes), of which 36,809 tonnes or 14 per cent were mined from NI 43-101 measured and indicated and the balance of 224,122 tonnes or 86 per cent were mined from new discoveries.
- Silver ounces sold increased 53 per cent for the second quarter to 263,357 ounces (257,509 ounces produced) from 172,356 silver ounces in 2010.
- Metal prices were a significant factor in the increased profitability of the company. Average silver prices were $36.86 per ounce compared with $18.22 per ounce in the second quarter of 2010.
La Negra mine:
- Increase in tonnes of ore processed during the second quarter of 42 per cent: 133,700 tonnes compared with 94,201 for 2010;
- Increase in silver ounces produced during the second quarter of 41 per cent: 257,508 ounces compared with 182,009 in 2010;
- Increase in copper, zinc and lead concentrate produced during the second quarter of 36 per cent: 5,391 tonnes (5,345 tonnes sold) compared with 3,976 in 2010;
- La Negra's production increase was supported by a continuous in-house diamond drilling program.
Mining operations and exploration drilling at La Negra continue to delineate additional mineralized zones, either between or as extensions of existing ore zones. These results are expected to add to the mine life of La Negra.
Drill crews have completed 6,863 metres of diamond drilling during the six months ended June, 2011.
A lead-silver concentrate circuit was installed and was placed into production during the quarter ended June 30, 2011. Metallurgical studies concluded that the new circuit, using gravimetric separation, would eliminate the penalty for lead content and result in a higher-quality copper concentrate.
Additional expansion of La Negra is planned to increase production from 1,500 tonnes per day up to 2,000 tonnes per day, with an investment of $4.5-million and an estimated completion in early 2012.
Shafter:
- Construction on the Shafter silver mine is on schedule and estimated to be complete by May, 2012.
- The Shafter feasibility study shows an estimated payback of 1.9 years based on $15.53 per ounce of silver, and the construction is estimated to be completed by May, 2012.
Earnings
The Company had earnings from mining operations of $5.3-million for the quarter ended June 30, 2011 (2010 -- $600,000), income before taxes of $1.7-million (2010 -- a loss of $1.4-million) and net income of $1.6-million (2010 -- a loss of $1.4-million). For the six months ended June 30, 2011, the company had earnings from mining operations of $10.7-million (2010 -- $1.3-million), income before taxes of $3.3-million (2010 -- a loss $ 1.9-million) and net income of $2.3-million (2010 -- a loss of $1.9-million).
The increase in earnings from operations was mainly related to increased volumes sold and the increase in the selling prices of the metals produced by the company.
Revenue
During the quarter ended June 30, 2011, the company generated revenues from the sale of 1,832 tonnes of copper concentrate (2010 -- 2,788 tonnes), 2,667 tonnes of zinc concentrate (2010 -- 1,085 tonnes), 846 tonnes of lead concentrate (2010 -- nil) and 263,357 ounces of silver (2010 -- 172,356 ounces) for total net revenues of $12.4-million (2010 -- $4.8-million).
The average price for sales of copper, silver, zinc and lead during the period were Cu -- $4.14 (2010 -- $3.45) per pound, Ag -- $36.86 (2010 -- $18.22) per ounce, Zn -- $1.02 (2010 -- $1.15) per pound and Pb -- $1.16 (2010 -- 88 cents). Metal prices were a significant factor in the increased profitability of the company.
HIGHLIGHTS Second-quarter Year-to-date 2011 2010 2011 2010Revenues($ millions) (1) $12.4 $4.8 $23.2 $9.3Earnings fromminingoperations(millions) 5.3 0.6 10.7 1.3Net income(loss)(millions) 1.6 (1.4) 2.3 (1.9)Operating cashflow beforemovements inworkingcapital(millions) (2) 4.0 (1.5) 8.7 (1.9)Silver ouncesproduced 257,508 182,009 497,783 336,104Silver ouncessold (2) (3) 263,357 172,356 482,058 326,146Average revenueper silver ouncesold 36.86 18.22 36.14 17.72Copper, leadand zincconcentratesproduced(tonnes) 5,391 3,976 10,075 6,962Ore mined(tonnes) 143,290 113,711 272,902 221,740Ore milled(tonnes) 133,700 94,201 260,931 173,208(1) After refinery and treatment charges.(2) A non-IFRS (international financial reporting standards) measure.(3) After refinery and treatment charges.
Summary
During second-quarter 2011, Aurcana continued to build on the advances of its La Negra mine. Metal concentrate prices continued to improve, and the company continued to adjust its cost structure, both on the operational and administrative side. The company continued to advance the permitting process at Shafter and initiated development of the Shafter mine. Aurcana continues to focus on its future growth.
Corporate
On April 19, 2011, Aurcana commenced trading on the OTCQX International. Investors can find current financial disclosure and real-time level 2 quotes for the company at the OTCQX and OTC market websites.
Second-quarter 2011 conference call details:
- Monday, Aug. 15, 2011, 4:30 p.m. EDT (1:30 p.m. Pacific).
Attendee access information:
Canada and the United States toll-free: 1-800-319-4610
Vancouver: 604-638-5340
Outside of Canada and the U.S.: 1-604-638-5340
A replay of the conference call will be available immediately following the conference by dialling 1-800-319-6413 in Canada and the U.S. (toll-free) or 1-604-638-9010 outside of Canada and the U.S.
The required passcode is 2729 followed by the pound sign.
Please dial in to the meeting at least five minutes prior to the start time using one of the attendee phone numbers.