NEWS. (EPS of $0.05)VANCOUVER, Nov. 15 /CNW/ - Mercator Minerals Ltd. ("Mercator" or the"Company") today reported its results for the three and nine monthperiods ended September 30, 2010. Net income for the three-month periodended September 30, 2010 of $10.68 million (
.05 per share) comparesto a net loss of
.69 million (
.01 loss per share) for thecorresponding period in 2009. Adjusted net income, excluding non-cashitems, for the third quarter was $14.78 million.
During the period, the Company generated consolidated revenuesof $56.77 million, an increase of approximately 217% over revenues inthe third quarter of 2009, primarily as a result of higher copper andmolybdenum sales and sales prices. Production during quarter endedSeptember 30, 2010 totalled 9,032,269 pounds of copper (7,654,329pounds in 2009) comprised of 8,167,634 pounds of copper in concentrates(6,534,701 - 2009) and 864,635 pounds of copper as cathodes (1,119,628- 2009), plus 1,234,987 pounds of molybdenum (557,934 - 2009) and135,136 ounces of silver (34,069 - 2009).
Mill throughput during the third quarter totaled 2.52 million tons or27,466 tons per day, with average head-grades of 0.223% copper, 0.040%molybdenum and 0.0934 oz/ton silver. Mill recoveries averaged 72.9% forcopper, 61.7% for molybdenum and 57.4% for silver during the period, amarked improvement over the second quarter.
Subsequent to the end of the period, the Company commenced thecommissioning of the rougher cell expansion at Mineral Park, achievingimproved recoveries during the initial startup of the new circuit.After a month of operation, copper recoveries averaged 78.9% (versustarget of 80%) and molybdenum recoveries averaged 72.1% (versus targetof 75%). October was a short month due to 4 down days to tie in the newrougher circuit. However, molybdenum production was a record 493,592pounds. Copper production was 2.67 million pounds and silver 44,386ounces during the month.
"The third quarter marked continued improvements for Mineral Park andMercator, with a second consecutive quarterly net profit, a year todate profit and improved operations at Mineral Park," said MikeSurratt, President and CEO. On a year to date basis, the Company is ina profitable position, reporting net earnings of $1.99 million afternon-cash items and a one-time charge of $6.0 million as anextraordinary item for the premium paid on the early redemption of thenotes issued by the Company in 2007. Excluding non-cash items and aone-time charge of $6.0 million as an extraordinary item for thepremium paid on the early redemption of the notes issued by the Companyin 2007, the Company recorded adjusted net earnings of $27.55 millionfor the nine months ended September 30, 2010."
Financial Highlights for the Three Months ended September 30, 2010
- Revenues from copper, molybdenum and silver sales for the three month period ended September 30, 2010 of $56.77 million compared to $26.21 million for the corresponding period in 2009, an increase of approximately 217%;
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three month period ended September 30, 2010 was $17.68 million compared to $6.83 million in the same period in 2009;
- Operating cash flow at wholly owned subsidiary, Mineral Park Inc, of $24.03 million, compared to $2.47 million in the same period in 2009;
- Consolidated net earnings for the three month period ended September 30, 2010, was $10.68 million (
.05 per share) (including non-cash items, interest expenses) compared to a net loss of
.69 million (
.01 loss per share) for the corresponding period in 2009;
- Estimated cash operating cost* for third quarter 2010 production of $2.12 for copper and $10.65 for molybdenum on a co-product basis;
All financial information contained herein should be read in conjunctionwith the Company's Management Discussion and Analysis and unauditedfinancial statements for the period ended September 30, 2010 and theManagement Discussion and Analysis and Audited consolidated financialstatements for the years ended December 31, 2009 and 2008 and relatednotes thereto available under the Company's profile on www.sedar.com.
Gary Simmerman, BSc., Mercator's VP Engineering, a Qualified Person asdefined by NI43-101, supervised the preparation of and verified theMercator technical information contained in this release.
Mercator Minerals Ltd.
Mercator Minerals Ltd. is a TSX listed mining company with anexperienced management team that has brought the mill expansion at theMineral Park Mine, one of the largest and most modern copper-molymining-milling operations in North America to production in less than 2years. Mercator management is dedicated to maximizing profits at theMineral Park Mine and the development of the El Pilar copper project inMexico.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt
President