Mercator Minerals Reports Second Quarter 2012 Results
During the second quarter 2012, the Company generated revenues of $61.3 million, gross profit of $9.0 million, cash flow from operations (before changes in non-cash working capital items) of $1.5 million, and net income of $22.1 million, or $0.09 per share.
Mercator Minerals Reports Second Quarter 2012 Results.
VANCOUVER, BRITISH COLUMBIA–(Aug. 13, 2012) – Mercator Minerals Ltd. (TSX:ML) (“Mercator” or the “Company”) today announced its financial results for the three months and six months ended June 30, 2012. During the second quarter 2012, the Company generated revenues of $61.3 million, gross profit of $9.0 million, cash flow from operations (before changes in non-cash working capital items) of $1.5 million, and net income of $22.1 million, or $0.09 per share. On an adjusted net earnings* basis, the Company reported a net loss of $3.5 million, or $0.01 per share. During this period, the Mineral Park Mine successfully ramped up to its throughput design capacity of 50,000 tons per day (“tpd”) while also achieving recoveries above design levels for the entire second quarter and subsequently.
“We are pleased to report that our Mineral Park Mine is achieving its operating goals and on target to meet its 2012 production guidance of 42 million pounds of copper and 10 million pounds of molybdenum,” stated Bruce McLeod, President & CEO of Mercator. “Our focus having exited the second quarter at, or above, design throughput and recoveries, is to build upon our production momentum through strong operational execution, which will maximize cash generation and enhance our financial position.”
SECOND QUARTER 2012 HIGHLIGHTS AND SIGNIFICANT ITEMS
- Copper equivalent production of 21.4 million pounds, comprised of 9.5 million pounds of copper in concentrates and cathode, 2.6 million pounds of molybdenum in concentrates and 155,000 ounces of silver (copper equivalent production throughout this press release is calculated using a molybdenum/copper ratio of 4.53, based on the Company’s estimated 2012 metal prices, including copper hedges).
- Record metal recoveries were achieved, with copper and molybdenum recoveries for the quarter of 80.5% and 79.1%, respectively, which is higher than design of 80% and 75% respectively. Recoveries in July were 85% and 81% for copper and molybdenum, respectively.
- Throughput averaged 46,638 tpd for the quarter, with the Company achieving design capacity of 50,000 tpd for June.
- Total cash costs*, on a co-product basis, were $2.35 per pound of copper produced and $10.79 per pound of molybdenum produced.
- Revenues in the second quarter 2012, as compared to the same quarter of 2011, were impacted by lower copper and molybdenum prices realized, lower copper sales volumes driven by lower than anticipated copper grades in the transition zone which were offset by higher recoveries, but positively affected by higher molybdenum sales volumes.
- Cash flow from stand-alone Mineral Park operations was $5.2 million in the second quarter.
About Mercator Minerals Ltd.
Mercator Minerals Ltd., a TSX listed Canadian mining company with the potential to have one of the fastest growing base metal profiles in its peer group, is a copper, molybdenum and silver producer with a diversified portfolio of high quality assets in the USA and Mexico. Mercator provides investors exposure to current copper, molybdenum and silver production from the large tonnage long life Mineral Park Mine in Arizona, as well as mid-term exposure to potential copper production from its El Pilar deposit in the State of Sonora in northern Mexico and longer term exposure of molybdenum and copper through the potential development of the El Creston deposit also in the State of Sonora in northern Mexico.
For further information please visit www.mercatorminerals.com.
Forward Looking Information
This press release contains certain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements”, are not historical facts, are made as of the date of this press release and include without limitation, statements regarding discussions of future plans, guidance, projections, objectives, estimates and forecasts and statements as to management’s expectations with respect to, among other things, the size, grade and quality of the Company’s mineral reserves and mineral resources, potential mineralization, and possible extensions of zones. In addition, estimates of mineral reserves and mineral resources may constitute forward looking statements to the extent they involve estimates of the mineralization that will be encountered if a property is developed. These forward-looking statements involve numerous risks and uncertainties and actual results may vary. Important factors that may cause actual results to vary include without limitation, certain transactions, certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, risks inherent in exploration results, timing and success, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials, equipment and third-party contractors, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets.
Mercator Minerals Ltd.
D. Bruce McLeod, P.Eng.
President & CEO
Mercator Minerals Ltd.
David Jan, CA
Head of Investor Relations & Communications