Malaga Inc MLGAF

Metals & Mining Industrial Metals & Minerals

Malaga Inc. is a mining company. The company, through its subsidiaries operates tungsten mine and gold plant with mining and exploration activities focused in Peru. The operations, exploration and development activities on the Pasto Bueno Property are located in the Ancash Department, Central Peru. The company also owns and operates in a hydroelectric asset. The company owns 100% of the property, including all surface rights. The company processes the ore from its own mine.

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Malaga Inc > Production Shut Down

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Comment by panhandlephillipson Oct 22, 2012 10:53am

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Post# 20509695

RE: RE: Production Shut Down

No electricity is only one concerm.

Cash flow from operations at the Pasto Bueno property has been lower than expected in 2012 due to the decrease in the production of tungsten caused mainly by lower head grade of the ore extracted and a reduction in selling price of tungsten. Operational improvements have not yet been fully implemented and there have been delays in building a decline ramp to access ore in lower levels of the Huayllapon zone (see news release of August 15, 2012 and management discussion and analysis of Q2-2012). The cost of building the new tailing pond is also higher than expected. Malaga is implementing various cost reduction measures at the Pasto Bueno property, the head office in Montreal and its office in Lima, Peru.