Can you describe your company and say what it does?
La Mancha Resources (TSX: T.LMA, Stock Forum) is an international gold producer that operates two mines in Australia and two in Africa. We plan to produce up to 135,000 attributable ounces of gold in 2011. We expect to boost our production to 200,000 ounces by 2014 and 350,000 gold equivalent ounces by 2015 by developing our flagship VMS (“Volcanic Massive Sulphides”) project in Sudan.
What distinguishes your company from others in your space?
La Mancha is a junior gold mining company but with the profile of an intermediate producer. As the operator of four gold mines in three countries, this year we are managing an estimated gold production of up to 260,000 ounces. La Mancha is easily distinguishable by its solid track record, posting an annual attributable gold production growth rate of 30% since 2007. We are also gold mining pioneers in Sudan and Ivory Coast, with the inheritance of over 20 years of operating experience in those countries, as well as one of the largest exploration land packages in the Arabian Nubian Shield, the home of our world-class VMS deposit.
How much cash do you have on hand and how much cash are you generating?
La Mancha had $70.7 million in cash and short-term investments and was debt-free as of June 30, 2011. For the first half of 2011, we posted net earnings of $18.8 million and generated $41.2 million in cash flow from operating activities. Our market capitalization as of September 19, 2011, was $350 million.
What are your flagship projects?
Today, La Mancha’s main producing asset is the Frog’s Leg mine. Frog’s Leg and the neighbouring White Foil mine form the centerpiece of our Australian mining complex, currently responsible for approximately 60% of our attributable gold production. Up and coming is the VMS project in Sudan, where La Mancha recently delivered a positive Phase 1 feasibility study. The first phase of this project is expected to boost our global production to 200,000 ounces of gold by 2014, while the second Phase should transform La Mancha into a mid-tier producer with a forecast output of 350,000 ounces of gold equivalent for 2015.
In the upcoming months, what important news catalysts are to be expected?
At our flagship VMS project, where we very recently published exciting drill results from a 70%-complete 100,000-metre drilling campaign, we expect to publish the remaining results before the end of the year and then release an updated resource estimate in early 2012. An upgraded reserve estimate is also expected to be released for our Australian operations in the Fall of 2011.
Who are the key players on your management team? What kind of experience do they bring to the table?
From a mine operation and exploration perspective, the key players are President and CEO, Dominique Delorme, Chief Operating Officer, Nigel Tamlyn, and VP Exploration, Jean-Jacques Kachrillo. All three are seasoned industry professionals, together representing over 80 years of cumulative global mining and exploration experience. From a corporate development perspective, Senior Vice-President Martin Amyot brings valuable experience of public markets, strategic development and communications.
Is analyst coverage available for La Mancha?
Yes, La Mancha is currently covered by Canaccord Genuity, Casimir Capital, Stonecap Securities, Collins Stewart, and Ocean Equities.
Disclosure: La Mancha Resources is a Stockhouse client