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Bullboard - Stock Discussion Forum Malaga Inc MLGAF

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... see more

GREY:MLGAF - Post Discussion

Malaga Inc > Nice production and sell price
View:
Post by Nick777 on Jan 17, 2011 9:19am

Nice production and sell price


You can see the press release about the production this morning 71 966 mtu

Malaga Achieves Record Production Level in 2010 and Forecasts to Be Profitable in 2011
1/17/2011 7:01:22 AM - Market Wire

MONTREAL, QUEBEC, Jan 17, 2011 (MARKETWIRE via COMTEX News Network) --

Malaga Inc. (TSX: MLG) is pleased to announce a record production of 71 996 MTU(1) in 2010 at the Pasto Bueno tungsten mine in Peru, an increase of 13.6% compared with 2009. This increase stems from the expansion project that Malaga undertook in 2009 which delivered increased production capacity.

Also, the APT price, a semi-finished tungsten product whose price fluctuates daily on the London Metals Bulletin, has risen 81% since January 2010, from US $185 per MTU to its current price of US $335 per MTU.

This spectacular increase is mainly due to industrial growth of the major users and a global shortage of tungsten supply. Moreover, the United States and the European Union have declared tungsten to be one of the 17 strategic metals in high demand, and have indicated that the metal should be sourced in politically-stable countries to secure its supply.

In 2011, given its production levels and the current APT price, Malaga expects to generate net profits.

Competitive Advantage

One of the major competitive advantages of Malaga's operation is its low cost per MTU, in part due to its hydroelectric power supply. The feasibility study for the second phase of hydroelectric development of lakes Pelagatos and Plata is now complete and can be used to complete a concession application, a report on the non-existence of archaeological remains and an environmental impact study. The current value of the 35 MW project is US $120 million with an IRR of 12.5%. The shareholders of Hidropesac, namely Malaga with 49% and Emerging Power Developers with 51%, must organize the financing of the project in 2011 by debt, equity or carbon credits.

Exploration and Development

The Malaga management team plans for a major $3-$4 million exploration and development program on its property in 2011. This investment will enable the Company to better define the mine's potential and provide for production over the longer-term. The manto area identified to the south of the property, where high tungsten grades have been obtained, is expected to be a top-priority target at the beginning of the year. Construction of the access road to the area is nearly complete.

Corporate Development

The Company recently announced the appointment of Pierre Monet as President and Joey Trombino as Vice President and Chief Financial Officer. Jean Martineau remains Chairman of the Board and Chief Executive Officer. The Company also has a new website at www.malaga.ca.

On January 23 and 24, the Management and technical team of Malaga will be at Booth #828 during the Vancouver Resource Investment Conference.

(1) MTU or Metric Ton Unit equals 10 kg; 1 tonne is equal to 100 MTU.

Comment by TheRock07 on Jan 17, 2011 4:39pm
Very very positive developments and forecasts for 2011.We are going to have a record year in more ways than one.Onward and upward................
Comment by sirsavvy on Jan 17, 2011 8:38pm
No offence but I didn't take this as good news and neither did the market.Last minutes sales brought this up from a bad day. Went as low as .26 on the news. This company says everywhere that they were supposed to be profitabe in Q4 (which was already delayed). Now they are not profitable until 2011.A bit frustrating and management needs to get their act in gear.
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