Orosur Mining Inc Announces Second Quarter Results
Orosur Mining Inc Announces Second Quarter Results
Orosur Mining Inc.
Orosur Mining Inc (‘OMI’ or the ‘Company’) (TSX: OMI) (AIM: OMI), the South American focused gold producer and explorer, today announces its results for the second quarter ending 30 November 2012.
Further to the announcement of 7 December, the Company reiterates that production for the quarter was 13,970 ounces and Orosur remains on track to achieve its forecast production target of 63,000 to 68,000 ounces for the full year.
The Company reports that the development of the Arenal Deeps ramp and lateral development to enable production from transverse stopes are on track for completion during the quarter ending 28 February 2013. Completion of the ramp and lateral development will enable the Company to access higher grade transverse stope ore at Arenal Deeps for the first time in the last quarter of the financial year ending 31 May 2013.
Operating and Financial Summary
|
Key Results Summary1 |
Three months ended |
Six Months Ended |
||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| Operating Results | ||||||||||||||||||||
| Gold produced | Ounces | 13,970 | 11,916 | 29,421 | 24,404 | |||||||||||||||
| Cash cost2 | $US/oz | 1,215 | 1,007 | 1,151 | 975 | |||||||||||||||
| Average price received | $US/oz | 1,694 | 1,717 | 1,642 | 1,663 | |||||||||||||||
| Financial Results | ||||||||||||||||||||
| Revenue | $US ‘000s | 24,168 | 20,985 | 50,502 | 42,011 | |||||||||||||||
| Net income for the period after tax | $US ‘000s | 1,210 | 2,565 | 3,501 | 6,977 | |||||||||||||||
| Cash flow from operations3 | $US ‘000s | 3,485 | 4,651 | 8,523 | 10,223 | |||||||||||||||
| Cash at the end of the period | $US ‘000s | 3,745 | 17,054 | 3,745 | 17,054 | |||||||||||||||
| Total debt at the end of the period | $US ‘000s | 9,718 | 5,949 | 9,718 | 5,949 | |||||||||||||||
|
(1)Results are based on IFRS and expressed in US dollars |
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(2)Operating cash cost is total cost excluding royalties and capital tax on production assets |
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(3)Before non-cash working capital movements |
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Production for the quarter was 13,970 ounces. Despite ore production being slowed from all pits due to heavy rain during the quarter and the mining sequence being changed production and cash costs from Arenal Deeps, Sobresaliente, and Zapucay were all in line with expectations.
However, ore mined from the Crucera pit during the quarter was of a lower grade than planned, resulting in lower ounces produced and higher cash costs per ounce at that pit. The cash cost per ounce for Crucera has increased because, though we have produced approximately the same amount of ore at the same cost, the grade of the ore has been lower than expected and so we have produced fewer ounces, thus increasing the total cash cost per ounce for the quarter to $US 1,215 an ounce compared with a target of approximately $US 1,100.
The impact of the higher cash costs and lower production from Crucera, offset in part by higher gold prices than we had planned for, reduced our cash flow for the quarter by $US 2.0 million. As a result the Company’s cash balance at the end of the quarter was $US 3.7 million.
CEO’s Comment
David Fowler, Chief Executive Officer, commented:
“Production was at the lower end of expectations for the quarter due to lower than anticipated grades from the Crucera pit. During December we slowed the rate of mining at Crucera in order to adapt the mining approach to reduce dilution, thus achieving less tonnes of ore produced at an improved grade. Accordingly, and taking account of the significant progress made on developing the ramp at Arenal Deeps, we remain confident that we will meet our production target for the second half, and achieve production for the full year of between 63,000 and 68,000 ounces.
“We anticipate that the grade achieved at Crucera will result in cash costs for the full year being in the range of $US 1,000 to $US 1,065 per ounce, a modest increase on the $US 975 that we forecast in October. We are focused on improving grade control and mining practices, and identifying where cost savings can be made elsewhere in the operation to offset part of the impact of the lower grade from Crucera.
“As a result of the lower cash flow in the second quarter we expect that our cash balance, prior to the additional capital expenditure outlined below, at year end will be approximately $US 13 million (based on production of 65,750 ounces and a gold price of $1,625 an ounce) compared with the $US 15 million that we announced in October. We expect to commit up to $US 4 million of additional capital expenditure in the second half of the year to accelerate the “pre-strip” of the San Gregorio extension that had been planned to commence in the next financial year . We have also incurred additional exploration expenditure to earn our interest in Pantanillo during the first half and plan, following a positive review of the project, to complete the initial acquisition of 25% of the Talca asset. Together with San Gregorio these investments will reduce the expected cash balance as at 31 May 2013 to approximately $US 8 million.
“Overall, we are confident that the Company remains on track to successfully deliver the strategy that was outlined in October 2012.”
Financial Highlights
- Revenue increased 15 per cent to $US 24.1m for the quarter (Q2 2011: $US 21.0m), with an average realized gold price of $US 1,694 (Q2 2011: $US 1,717/oz).
- Net profit after tax for the quarter was $US1.2m (Q2 2011: $US 2.6m). For the half year net profit after tax was $US3.5m (1H 2011: $US 7.0m).
- Cash flow from operations for the quarter was $US3.5m (Q2 2011: $US 4.6m) with $US 8.5m for the half year (1H 2011: $US 10.2m). $US 4.8m was consumed in working capital during the half. Working capital is expected to be maintained or reduced in the second half of the current financial year.
- Capital expenditure for the first half was $US 11.75m. Total capital expenditure for the year is expected to be $US 24.5m compared to an original budget of $US 20.5m. The Company is planning to spend up to $US4m in the second half of the current year to change the mining sequence of San Gregorio to accelerate pre-strip on this deposit. This will allow the Company to maintain higher ore stock levels to reduce risk and maximise throughput and maintain consistent production over the coming years.
- The Company’s cash balance at 30 November 2012 was $US 3.75m compared to $US 7.2m at 31 August 2012. This is in accordance with previous guidance. Cash flow from operations and profitability in the second half is expected to be significantly stronger as higher production levels are forecast with similar cost levels. The Company’s cash balance is therefore expected to increase in the second half.
Production Highlights
- Production for the quarter increased by 17 per cent year on year to 13,970 ounces (Q2 2011: 11,916 ounces). 29,422 ounces were produced for the half year (1H 2011: 24,404), an increase of 20.6 per cent.
- During the quarter 1.8m tonnes of waste (Q2 11/12 – 1.4m) and 284,880 tonnes of ore (Q2 11/12 – 232,070) were mined with an average grade of 1.50 g/t (Q2 11/12 – 1.25g/t).
- During the quarter 385,271 tonnes of ore (Q2 11/12 – 391,686) were fed into the plant at an average grade of 1.21 g/t (Q2 11/12 – 1.02 g/t) to produce 13,970 ounces of gold (Q2 11/12 – 11,916) with a metallurgical recovery of 93.4% (Q2 11/12 – 92.6%).
- Cash operating costs for the quarter were $US1,215 per ounce (Q2 2011: $US1,007). Higher costs were due to lower head grade mined from the Crucera pit, planned higher stripping costs for the quarter and Uruguayan inflation and peso exchange rate when compared to the prior year. Unit mining and processing costs including Arenal Deeps underground costs were in accordance or below budget.
- Successful continued development of the ramp at Arenal Deeps with 352 metres completed during the quarter. The ramp is planned for completion during January with ore production targeted for the second half of February when level development for the initial mining levels is complete.
- The production forecast for the full year remains on track to be in the range of 63,000 to 68,000 ounces. Production in the second half is expected to increase as Arenal development will transition from waste to ore, higher grade Arenal ore will be accessed in the last quarter and Crucera ore delayed from the first half of the year will be processed in the second half.
- Cash cost per ounce for the full year is expected to be in the range of $US1,000 to $US1,065 per ounce, approximately 6 per cent above the Company’s budget for the year, as a result of the average grade of ore mined from the Crucera open pit in the first half of the year being lower than initially expected. Unit operating costs are in line with budget.
Exploration and Development Highlights
- Maiden NI43-101 compliant resource estimate expected at Mahoma in the second half of fiscal 2013 – expected to support the commencement of feasibility work. 4,530 metres of infill and extension drilling have been completed on the Mahoma vein project. Best results reported to date for the current programme include 1.4 meters at 219 g/t, 1.6 meters at 32.1 g/t, 1.4 meters at 36.7 g/t, 3 meters at 20 g/t and 4 meters at 41.2 g/t.
- Company completed drilling and expenditure commitments on the Pantanillo project it optioned from Anglo American. During December the Company exercised its option to acquire the Pantanillo project and now owns the project. Field work during quarter three will be focused on target generation with no further drilling planned for this fiscal year.
- Completion of the previously announced review of the Talca project. The review identified a number of new areas with potential for discovery of high grade veins. Company to complete the acquisition of initial 25 per cent interest during 2013. Upon completion, the Company will have five years to perform further exploration work without having to make further payments. A CSMT geophysical survey is planned to test these and existing zones before further drilling is performed.
- At Anillo 75 km² of new mapping and 28 trenches were completed during the quarter. Anomalous Au and Ag values were obtained in the Anillo Central and South East sectors that suggest the existence of an underlying hydrothermal cell. A CSMT geophysical survey is planned for the third quarter with 2,000 meters of drilling in the fourth quarter to test these targets.
Financial and Operating Performance Details
Further information on financial and operating performance can be found in the Company’s Management Discussion and Analysis filed on SEDAR.
Exploration and Development
Mahoma
During fiscal 2013, 44 drill holes equal to 4,530.2 m were completed at the project: 1560.20 m of diamond drilling and 2970 m RC drilling (of which 1830 m were for pre-collars). Resource modelling will commence when the pending assay results are received in January with a first NI43-101 resource estimate for Mahoma targeted for completion during the second half of the financial year. A plan view of the drill holes contained in the following table is available on the Company’s website.
|
Hole |
from |
to |
interval |
Au g/t | Comments | ||||||||||||||||
| MHDD029 | 70.8 | 72.4 | 1.6 | 5.96 | |||||||||||||||||
| MHDD030 | 25.9 | 26.4 | 0.5 | 1.39 | |||||||||||||||||
| 32.7 | 34.7 | 2 | 3.30 | ||||||||||||||||||
| MHDD031 | 17.2 | 18 | 0.8 | 1.88 | |||||||||||||||||
| 38.8 | 39.85 | 1.05 | 1.02 | ||||||||||||||||||
| 67 | 67.8 | 0.8 | 4.60 | ||||||||||||||||||
| 86.15 | 87.55 | 1.4 | 219.33 | ||||||||||||||||||
| MHDD032 | 92.03 | 92.6 | 0.57 | 30.10 | |||||||||||||||||
| MHDD033 | 91.9 | 92.6 | 0.7 | 3.13 | |||||||||||||||||
| 96.6 | 97.2 | 0.6 | 16.72 | ||||||||||||||||||
| 98.3 | 99.9 | 1.6 | 32.15 | ||||||||||||||||||
| 108.9 | 109.9 | 1 | 1.06 | ||||||||||||||||||
| MHDD034 | 103.2 | 103.9 | 0.7 | 2.82 | |||||||||||||||||
| MHDD035 | 102.6 | 105.55 | 2.95 | 3.48 | |||||||||||||||||
| 106.1 | 106.6 | 0.5 | 2.80 | ||||||||||||||||||
| MHDD036 | 91.9 | 93.3 | 1.4 | 36.71 | |||||||||||||||||
| MHDD037 | No significant results | ||||||||||||||||||||
| MHDD037 | 97 | 98.4 | 1.4 | 3.15 | |||||||||||||||||
| 101.5 | 102 | 0.5 | 3.56 | ||||||||||||||||||
| MHDD038 | 103 | 105 | 2 | 1.77 | |||||||||||||||||
| 107.5 | 108 | 0.5 | 2.09 | ||||||||||||||||||
| MHDD039 | 138.1 | 138.6 | 0.5 | 2.06 | |||||||||||||||||
| 139.2 | 140 | 0.8 | 2.80 | ||||||||||||||||||
| 141.5 | 142 | 0.5 | 4.06 | ||||||||||||||||||
| MHDD040 | 106.7 | 107.85 | 1.15 | 4.03 | |||||||||||||||||
| MHDD041 | 129.5 | 130.5 | 1 | 2.87 | |||||||||||||||||
| MHDD042 | 118.7 | 119.7 | 1 | 2.80 | |||||||||||||||||
| 125.7 | 126.2 | 0.5 | 2.10 | ||||||||||||||||||
| MHDD043 | 51.55 | 52.1 | 0.55 | 1.62 | |||||||||||||||||
| 58.2 | 58.75 | 0.55 | 11.73 | ||||||||||||||||||
| MHDD045 | 102.1 | 104.35 | 2.25 | 12.33 | |||||||||||||||||
| MHDD046 | 73.2 | 73.9 | 0.7 | 2.62 | |||||||||||||||||
| 78.9 | 79.9 | 1 | 3.60 | ||||||||||||||||||
| 121.1 | 122.3 | 1.2 | 1.99 | ||||||||||||||||||
| MHDD047 | No significant results from RC pre-collar | Assay results pending from 100 m diamond drilling. | |||||||||||||||||||
| MHDD048 | No significant results from RC pre-collar | Assay results pending from 50 m diamond drilling. | |||||||||||||||||||
| MHDD049 | No significant results from RC pre-collar | Assay results pending from 60 m diamond drilling. | |||||||||||||||||||
| MHDD050 | 23 | 25 | 2 | 2.16 | Assay results pending from 55 m of diamond drilling. | ||||||||||||||||
| MHDD051 | No significant results from RC precollar | Assay results pending from 54 m of diamond drilling. | |||||||||||||||||||
| MHDD052 | No significant results from RC precollar | Assay results pending from 70 m diamond drilling. | |||||||||||||||||||
| MHDD053 | 40 | 41 | 1 | 10.70 | Assay results pending from 18 m diamond drilling. | ||||||||||||||||
| MHDD053 | 45 | 46 | 1 | 6.32 | |||||||||||||||||
| MHDD054 | No significant results from RC precollar | Assay results pending from 30 m diamond drilling. | |||||||||||||||||||
| MHDD055 | No significant results from RC precollar | Assay results pending from 34 m diamond drilling. | |||||||||||||||||||
| MHDD056 | No significant results from RC precollar | Assay results pending from 50 m diamond drilling. | |||||||||||||||||||
| MHDD057 | No significant results from RC precollar | Assay results pending from 28 m diamond drilling. | |||||||||||||||||||
| MHRC011 | 7 | 8 | 1 | 1.01 | |||||||||||||||||
| MHRC012 | 48 | 49 | 1 | 3.33 | |||||||||||||||||
| MHRC013 | 11 | 12 | 1 | 2.07 | |||||||||||||||||
| MHRC013 | 22 | 23 | 1 | 1.84 | |||||||||||||||||
| MHRC014 | 29 | 30 | 1 | 1.91 | |||||||||||||||||
| MHRC015 | 45 | 48 | 3 | 20.02 | |||||||||||||||||
| MHRC016 | 52 | 54 | 2 | 2.67 | |||||||||||||||||
| MHRC016 | 71 | 72 | 1 | 3.68 | |||||||||||||||||
| MHRC016 | 74 | 75 | 1 | 4.73 | |||||||||||||||||
| MHRC017 | 77 | 78 | 1 | 2.56 | |||||||||||||||||
| MHRC017 | 80 | 81 | 1 | 3.01 | |||||||||||||||||
| MHRC017 | 52 | 53 | 1 | 1.42 | |||||||||||||||||
| MHRC018 | 55 | 57 | 2 | 9.84 | |||||||||||||||||
| MHRC019 | 61 | 63 | 2 | 1.98 | |||||||||||||||||
| MHRC019 | 51 | 55 | 4 | 41.22 | |||||||||||||||||
| MHRC020 | 62 | 63 | 1 | 1.18 | |||||||||||||||||
| MHRC020 | 53 | 59 | 6 | 2.00 | |||||||||||||||||
| MHRC021 | 62 | 63 | 1 | 2.41 | |||||||||||||||||
| MHRC022 | 50 | 52 | 2 | 4.87 | |||||||||||||||||
| MHRC022 | 28 | 29 | 1 | 1.29 | |||||||||||||||||
| MHRC024 | 87 | 88 | 1 | 46.77 | |||||||||||||||||
| MHRC025 | 90 | 92 | 2 | 1.81 | |||||||||||||||||
Arenal Deeps
Infill and extension drilling continued during the quarter. Results of holes drilled during the quarter are shown in the following table. Drill holes ALDD142 and ALD143 were drilled from surface with the remained drilled from underground. All holes are diamond drilling.
| HOLE_ID | from (m) | to (m) | interval (m) | Au ppm | Comments | |||||||||||||||
| ALDD142 | 267.70 | 275.15 | 7.45 | 2.06 |
Drilled from Surface
Includes 1.5 m at 17.8 g/t |
|||||||||||||||
| 278.85 | 283.35 | 4.5 | 6.4 | |||||||||||||||||
| 294.55 | 303.15 | 8.6 | 2.4 | |||||||||||||||||
| ALDD143 | 295.80 | 301.65 | 5.85 | 1.63 | Drilled from Surface | |||||||||||||||
| 305.45 | 306.85 | 1.4 | 1.96 | |||||||||||||||||
| 338.10 | 342.70 | 4.6 | 1.30 | |||||||||||||||||
| 352.60 | 361.45 | 8.85 | 2.65 | |||||||||||||||||
| DDHUGN132_W2_1 | 32 | 38.2 | 6.2 | 2.15 | ||||||||||||||||
| 74.6 | 76.8 | 2.2 | 1.30 | |||||||||||||||||
| 78.95 | 80.9 | 2.0 | 2.75 | |||||||||||||||||
| 84.5 | 93.55 | 9.1 | 3.70 | |||||||||||||||||
| DDHUGN132_W2_2 | 67.3 | 69.4 | 2.1 | 4.47 | ||||||||||||||||
| 108.5 | 117.9 | 6.3 | 4.05 | |||||||||||||||||
| DDHUGN132_W2_3 | 42.9 | 44.9 | 2.0 | 3.78 | ||||||||||||||||
| 69.7 | 77.7 | 8.0 | 2.12 | |||||||||||||||||
| 82.9 | 85.9 | 3.0 | 5.43 | |||||||||||||||||
| 95.6 | 114.8 | 19.2 | 8.45 | |||||||||||||||||
| DDHUGN132_W2_4 | 28.9 | 32.53 | 3.6 | 2.32 | ||||||||||||||||
| 38.9 | 41.6 | 2.7 | 2.84 | |||||||||||||||||
| 43.6 | 68.5 | 24.9 | 4.57 | |||||||||||||||||
| 76.3 | 84.3 | 8.0 | 5.63 | |||||||||||||||||
| 86.8 | 136.6 | 49.8 | 5.78 | |||||||||||||||||
| DDHUGN132_W2_5 | 26.7 | 29.1 | 2.4 | 2.27 | ||||||||||||||||
| 48.8 | 61.6 | 12.8 | 4.58 | |||||||||||||||||
| 63.9 | 70.1 | 6.2 | 2.55 | |||||||||||||||||
| 72.1 | 101 | 28.9 | 4.54 | |||||||||||||||||
| 105.5 | 107.5 | 2.0 | 2.02 | |||||||||||||||||
| DDHUGN157-8 | 28.5 | 30.15 | 1.7 | 1.73 | ||||||||||||||||
| 33.5 | 34.5 | 1.0 | 6.56 | |||||||||||||||||
| 45.9 | 47.9 | 2.0 | 8.97 | |||||||||||||||||
| 143.9 | 148.3 | 4.4 | 6.68 | |||||||||||||||||
| 154.4 | 159.2 | 4.8 | 5.19 |
Other Uruguay
Field work has commenced on the Presidente Terra property which is located approximately 240km NE from Montevideo or 370 km NW by road to the San Gregorio mine site. Geologic mapping and sampling are been carried on at the Presidente Terra Central Zone and the Retamosa zone which is in the western portion of the property. Both areas were previously not worked due to access restrictions. Depending on the results, drilling is planned for May 2013.
Surface geologic mapping and sampling was carried on at Arroyo Laureles, Rincon de los Castillos and Vaca Muerta projects during the quarter. Geophysics and subsequent RCD drilling is planned, depending on permitting during the second half of fiscal 2013. Rincon de los Castillos and Arroyo Laureles are thought to be the eastern strike extent of the San Gregorio system that has produced 1m ounces of mineralisation.
Anillo
During the quarter field work resulted in detailed geologic mapping of 75 km² and the completion of 28 trenches from which 528 samples were taken of which approximately 70 per cent of assay results have been received. Anomalous Au and Ag values were obtained at Anillo Central, consistent anomalous Au values at SE part suggest the existence of underlying hydrothermal cell. Locally high Cu values support this assumption.
Trench sampling results:
| Hole Number | from meters | to meters | interval meters | Au ppb | Comments | |||||||||||||||
| T-ANC-06 | 66 | 68 | 2 | 48 | ||||||||||||||||
| 72 | 76 | 4 | 78 | Grey quartz vein | ||||||||||||||||
| including | 72 | 74 | 2 | 92 | ||||||||||||||||
| 82 | 84 | 2 | 73.6 | |||||||||||||||||
| 162 | 166 | 4 | 64 | |||||||||||||||||
| T-ANC-07 | 4 | 6 | 2 | 44 | ||||||||||||||||
| 18 | 20 | 2 | 49 | |||||||||||||||||
| 24 | 28 | 4 | 69 |
Breccia and |
||||||||||||||||
| including | 24 | 26 | 2 | 77 | ||||||||||||||||
| 52 | 54 | 2 | 81 | |||||||||||||||||
| 60 | 68 | 8 | 84 | |||||||||||||||||
| including | 60 | 62 | 2 | 118.5 | ||||||||||||||||
| T-ANC-20 | 50 | 56 | 6 | 80 | ||||||||||||||||
| including | 54 | 56 | 2 | 95 | ||||||||||||||||
| T-ANC-23 | 4 | 16 | 12 | 450 | ||||||||||||||||
| including | 8 | 14 | 6 | 550 |
And 7.8 gr/t Ag |
|||||||||||||||
| T-ANC-25 | 0 | 2 | 2 | 73 | ||||||||||||||||
| T-ANC-27 | 6 | 14 | 8 | 45 | ||||||||||||||||
| T-ANC-22 | 22 | 23 | 1 | 1980ppm Cu | ||||||||||||||||
| 36 | 38 | 2 | 1950ppm Cu | |||||||||||||||||
| 36 | 37 | 1 | 2500ppm Cu | |||||||||||||||||
| T-AN-SE-09 | 20 | 22 | 2 | 51.5 | ||||||||||||||||
| 62 | 64 | 2 | 47 |
Anillo is the higher part of an epithermal, advanced argillic alteration zone, and buried high grade Au mineralized structures are being targeted. The area is located to the NE of el Peñon Mine and SW of the Veta Victoria project, both owned by Yamana Gold Inc. A total of 11 km of CSAMT (6 lines) and 2.500 m of RCD drilling is planned for the first half of 2013.
Other Chile
Surface mapping and sampling at Talca has defined a number of new target areas during the half and confirmed the potential for the project to host additional economic mineralisation. A CSAMT survey is planned to follow-up these target areas during 2013.
Field work to define new targets is expected to commence in January 2013. No additional drilling is planned for the current fiscal year.
ENDS
For further information, please contact:
Orosur Mining Inc
David
Fowler
CEO
or
Ignacio Salazar, + 562 9246800
CFO
info@orosur.ca
or
Canaccord
Genuity Limited (Nominated Adviser & Joint Broker)
Rob
Collins / Andrew Chubb, +44 (0) 20 7523 8000
or
Seymour
Pierce (Joint Broker)
Stewart Dickson / Jeremy Stephenson, +44
(0) 20 7107 8000
or
Blythe Weigh Communications (Public
Relations and Investor Relations)
Paul Weigh, +44 (0) 7989
129658
or
Robert Kellner, +44 (0) 7800 554377
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile. The Company is quoted in Canada (TSX: OMI) and London (AIM: OMI).
Qualified Person's Statement
The information presented in this press release has been reviewed by Eric Roth, Director of OMI and Francisco Castillo, Manager of OMI both of whom are considered to be in compliance with NI 43-101 reporting guidelines. Dr. Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the AusIMM, and has had over 20 years of experience in international minerals exploration and property evaluation. Mr. Castillo is a mining engineer from the Universidad de Santiago de Chile, he is certified by the Comisión Minera de Chile and has 12 years of experience.
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws,
including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
- Financial Statements follow -
| Orosur Mining Inc. | ||||||||||||
|
Condensed Interim Consolidated Statement of Financial Position |
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|
Thousands of United States Dollars, except where indicated |
||||||||||||
| Note Ref. |
As at November 30, |
As at May 31, |
||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | 3,745 | 11,461 | ||||||||||
| Accounts receivables and other assets | 3 | 4,823 | 4,734 | |||||||||
| Inventories | 4 | 18,371 | 17,110 | |||||||||
| Total current assets | 26,939 | 35,305 | ||||||||||
| Property plant and equipment and development costs | 5 | 63,180 | 58,737 | |||||||||
| Exploration and evaluation costs | 6 | 31,652 | 26,872 | |||||||||
| Deferred income tax assets | 11 | 5,225 | 3,642 | |||||||||
| Restricted cash | 231 | 231 | ||||||||||
| Total non-current assets | 100,288 | 89,482 | ||||||||||
| Total Assets | 127,227 | 122,787 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Trade payables and other accrued liabilities | 3 | 16,290 | 18,868 | |||||||||
| Financial debt | 16 | 5,559 | 3,418 | |||||||||
| Derivative financial instruments | 13 | 0 | 41 | |||||||||
| Total current liabilities | 21,849 | 22,327 | ||||||||||
| Financial debt | 4,159 | 2,805 | ||||||||||
| Environmental rehabilitation provisions | 7 | 5,025 | 5,091 | |||||||||
| Total non-current liabilities | 9,184 | 7,896 | ||||||||||
| Total liabilities | 31,033 | 30,223 | ||||||||||
| Capital stock | 8 | 55,153 | 55,074 | |||||||||
| Warrants | 276 | 276 | ||||||||||
| Contributed surplus | 5,474 | 5,424 | ||||||||||
| Retained earnings | 35,291 | 31,790 | ||||||||||
| Total shareholders’ equity | 96,194 | 92,564 | ||||||||||
| Total liabilities and shareholders’ equity | 127,227 | 122,787 | ||||||||||
|
Approved on behalf of the Board of Directors |
||||||||||||
| “David Fowler” | CEO | “Ignacio Salazar” |
CFO |
|||||||||
| Orosur Mining Inc. | ||||||||||||||||||||
| Condensed Interim Consolidated Statements of Income and Comprehensive income | ||||||||||||||||||||
|
Thousands of United States Dollars, except for earnings per share amounts |
||||||||||||||||||||
|
Note Ref. |
Three months ended |
Six months ended |
||||||||||||||||||
|
2012 ($) |
2011 ($) | 2012 ($) | 2011 ($) | |||||||||||||||||
| Sales | 24,168 | 20,985 | 50,502 | 42,011 | ||||||||||||||||
| Cost of sales | 18 | (22,067) | (15,745) | (43,803) | (30,707) | |||||||||||||||
| Gross profit | 2,101 | 5,240 | 6,699 | 11,304 | ||||||||||||||||
| Corporate and administrative expense | (1,304) | (1,296) | (2,600) | (2,477) | ||||||||||||||||
| Exploration expenses | (87) | (223) | (416) | (659) | ||||||||||||||||
| Other income | 358 | 576 | 391 | 632 | ||||||||||||||||
| Finance cost | 17 | (166) | (65) | (247) | (90) | |||||||||||||||
| Finance income | 17 | 4 | 8 | 7 | 17 | |||||||||||||||
| Derivative gain | 13 | 472 | 0 | 41 | 0 | |||||||||||||||
| Net foreign exchange (loss) gain | (343) | 95 | (338) | 138 | ||||||||||||||||
| Profit before income tax | 1,035 | 4,335 | 3,537 | 8,865 | ||||||||||||||||
| Recovery (provision) for income taxes | 11 | 175 | (1,770) | (36) | (1,888) | |||||||||||||||
| Total income and comprehensive income for the period | 1,210 | 2,565 |
3,501 |
6,977 |
||||||||||||||||
| Earnings per common share | ||||||||||||||||||||
| Basic | 15 | 0.02 | 0.03 | 0.05 | 0.09 | |||||||||||||||
| Diluted | 15 | 0.02 | 0.03 | 0.05 | 0.09 | |||||||||||||||
| Orosur Mining Inc. | ||||||||||||||||
| Condensed Interim Consolidated Statements of Cash Flows | ||||||||||||||||
|
Thousands of United States Dollars, except where indicated |
||||||||||||||||
|
|
Three months ended |
Six months ended |
||||||||||||||
| 2012 ($) | 2011 ($) | 2012 ($) | 2011 ($) | |||||||||||||
|
Net inflow (outflow) of cash related to the following activities
Cash flow from Operating activities |
||||||||||||||||
| Net income for the period | 1,210 | 2,565 | 3,501 | 6,977 | ||||||||||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||||||||||
| Depreciation | 4,133 | 1,990 | 7,063 | 3,990 | ||||||||||||
| Fair value of derivatives | (472) | 0 | (41) | 0 | ||||||||||||
| Accretion of asset retirement obligation | 19 | 13 | 38 | 26 | ||||||||||||
| Deferred income tax assets | (938) | 597 | (1,583) | (377) | ||||||||||||
| Stock based compensation | 22 | 90 | 59 | 216 | ||||||||||||
| Gain on sale of property, plant and equipment | (481) | (562) | (514) | (562) | ||||||||||||
| Others | (8) | (42) | 0 | (47) | ||||||||||||
| Subtotal | 3,485 | 4,651 | 8,523 | 10,223 | ||||||||||||
| Changes in operating assets and liabilities | ||||||||||||||||
| Accounts receivables and other assets | (236) | (402) | (989) | 304 | ||||||||||||
| Inventories | (1,557) | (368) | (1,261) | (146) | ||||||||||||
| Trade payables and other accrued liabilities | (335) | 5,444 | (2,578) | 3,070 | ||||||||||||
| Net cash generated from operating activities | 1,357 | 9,325 | 3,695 | 13,451 | ||||||||||||
| Cash flow from financing activities | ||||||||||||||||
| Proceeds from the issue of share options | 54 | 4 | 70 | 20 | ||||||||||||
| Proceeds from the issue of shares in a private placement | 0 | 0 | 0 | 12,360 | ||||||||||||
| Loans received | 2,834 | 1,235 | 3,573 | 5,080 | ||||||||||||
| Loans payment | (10) | (15) | (21) | (27) | ||||||||||||
| Net cash from financing activities | 2,878 | 1,224 | 3,622 | 17,433 | ||||||||||||
| Cash flow from investing activities | ||||||||||||||||
| Purchase of property, plant and equipment and development costs | (7,040) | (10,632) |
(11,752) |
(19,543) | ||||||||||||
| Loans collected (granted) | 900 | 0 | 900 | (1,000) | ||||||||||||
| Proceeds from the sale of fixed assets | 909 | 1,366 | 942 | 1,366 | ||||||||||||
| Exploration and evaluation expenditure assets | (2,451) | (4,515) | (5,123) | (8,831) | ||||||||||||
| Net cash used in investing activities | (7,682) | (13,781) | (15,033) | (28,008) | ||||||||||||
|
Increase (Decrease) in cash and cash equivalents |
(3,447) |
(3,232) |
(7,716) |
2,876 |
||||||||||||
| Cash and cash equivalents at the beginning of period | 7,192 | 20,286 | 11,461 | 14,178 | ||||||||||||
| Cash and cash equivalents at the end of period | 3,745 | 17,054 | 3,745 | 17,054 | ||||||||||||
| Orosur Mining Inc. | ||||||||||||||||
| Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity | ||||||||||||||||
|
Thousands of United States Dollars, except where indicated |
||||||||||||||||
|
Three months ended |
Six months ended |
|||||||||||||||
|
2012 ($) |
2011 ($) |
2012 ($) |
2011 ($) |
|||||||||||||
|
Capital stock |
||||||||||||||||
| Balance at beginning of period | 55,099 | 55,068 | 55,074 | 42,692 | ||||||||||||
| Private placement net of share issuance costs | 0 | (276) | 0 | 12,085 | ||||||||||||
| Finder’s fee for Talca acquisition | 0 | 250 | 0 | 250 | ||||||||||||
| Exercise of stock options | 54 | 6 | 70 | 21 | ||||||||||||
| Transfer from contributed surplus | 0 | 0 | 9 | 0 | ||||||||||||
| Balance at end of period | 55,153 | 55,048 | 55,153 | 55,048 | ||||||||||||
| Broker Warrants | ||||||||||||||||
| Balance at beginning of period | 276 | 0 | 276 | 0 | ||||||||||||
| Commission on private placement | 0 | 276 | 0 | 276 | ||||||||||||
| Balance at end of period | 276 | 276 | 276 | 276 | ||||||||||||
|
Contributed surplus |
||||||||||||||||
| Balance at beginning of period | 5,452 | 5,264 | 5,424 | 5,138 | ||||||||||||
| Transfer to capital stock | 0 | (2) | (9) | (2) | ||||||||||||
| Employee stock based compensation recognized | 22 | 90 | 59 | 216 | ||||||||||||
| Balance at end of period | 5,474 | 5,352 | 5,474 | 5,352 | ||||||||||||
|
Retained earnings |
||||||||||||||||
| Balance at beginning of period | 34,081 | 35,005 | 31,790 | 30,593 | ||||||||||||
| Net income for the period | 1,210 | 2,565 | 3,537 | 6,977 | ||||||||||||
| Balance at end of period | 35, 291 | 37,570 | 35,291 | 37,570 | ||||||||||||
| Shareholders’ equity at end of period | 96,194 | 98,246 | 96,194 | 98,246 | ||||||||||||
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