Mercator Reports Profitable Second Quarter
(Stated in US Dollars unless otherwise indicated)
TRADING SYMBOL: TSX - ML
VANCOUVER, Aug. 13 /PRNewswire-FirstCall/ - Mercator Minerals Ltd. ("Mercator" or the "Company") today reported its results for the three and six month periods ended June 30, 2010. Net income for the three-month period ended June 30, 2010 of $2.88 million ($0.01 per share) compares to a net loss of $4.40 million ($0.04 loss per share) for the corresponding period in 2009. Net income in the second quarter of 2010 includes a one-time charge of $6.0 million as an extraordinary item for the premium paid on the early redemption of the notes issued by the Company in 2007, and additional non-cash items of $10.1 million. Adjusted net income, excluding one-time and non-cash items, for the second quarter was $18.97 million.
During the period, the Company generated consolidated revenues of $52.99 million, an increase of approximately 249% over revenues in the second quarter of 2009, primarily as a result of higher copper and molybdenum sales and sales prices. Production during quarter ended June 30, 2010 totalled 9,005,388 pounds of copper (9,091,708 pounds in 2009) comprised of 8,180,422 pounds of copper in concentrates (7,867,241 - 2009) and 824,966 pounds of copper as cathodes (1,224,467 - 2009), plus 948,443 pounds of molybdenum (418,987 - 2009) and 117,185 ounces of silver (56,441 - 2009).
Mill throughput during the second quarter totaled 2.31 million tons or 25,371 tons per day, with average head-grades of 0.239% copper, 0.039% molybdenum and 0.10 oz/ton silver. Mill recoveries averaged 73.8% for copper, 52.1% for molybdenum and 49.7% for silver during the period, a significant improvement over the first quarter.
"The second quarter was a pivotal one for Mineral Park and Mercator, with our first quarterly net profit and the favorable restructuring our corporate debt since the construction of the mill," said Mike Surratt, President and CEO. "Turning Mineral Park into a profitable mine has been our goal over the past four years. Despite some very challenging external circumstances, the hard work and dedication of our team has made this possible and they deserve the credit."
Financial Highlights for the Three Months ended June 30, 2010
- Revenues from copper, molybdenum and silver sales for the three month
period ended June 30, 2010 of $52.99 million compared to
$21.25 million for the corresponding period in 2009, an increase of
approximately 249%;
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") for the three month period ended June 30, 2010 was
$21.67 million compared to a $4.98 million in the same period in
2009;
- Operating cash flow at wholly owned subsidiary, Mineral Park Inc, of
$28.10 million, compared to $1.32 million in the same period in 2009;
- Net income for the three month period ended June 30, 2010, was
$2.88 million ($0.01 per share) (including non-cash items, interest
expenses and a one-time charge of $6.0 million as an extraordinary
item for the premium paid on the early redemption of the Notes issued
by the Company in 2007) compared to a net loss of $4.40 million
($0.04 loss per share) for the corresponding period in 2009;
- Estimated cash operating cost* for second quarter 2010 production
of $1.89 for copper and $10.50 for molybdenum on a co-product basis;
All financial information contained herein should be read in conjunction with the Company's Management Discussion and Analysis and unaudited financial statements for the period ended June 30, 2010 and the Management Discussion and Analysis and Audited consolidated financial statements for the years ended December 31, 2009 and 2008 and related notes thereto available under the Company's profile on www.sedar.com.
Gary Simmerman, BSc., Mercator's VP Engineering, a Qualified Person as defined by NI43-101, supervised the preparation of and verified the Mercator technical information contained in this release.
Mercator Minerals Ltd.
Mercator Minerals Ltd. is a TSX listed mining company with an experienced management team that has brought the mill expansion at the Mineral Park Mine, one of the largest and most modern copper-moly mining-milling operations in North America to production in less than 2 years. Mercator management is dedicated to maximizing profits at the Mineral Park Mine and the development of the El Pilar copper project in Mexico.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt
President
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
Forward Looking Information
This press release contains certain forward-looking statements, which include estimates, forecasts, and statements as to management's expectations with respect to, among other things, the use of proceeds, the size and quality of the Company's mineral reserves and mineral resources, future production, capital and mine production costs, demand and market outlook for commodities, and the financial results of the Company and discussions of future plans, projections and objectives. In addition, estimates of mineral reserves and 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 assumptions, risks and uncertainties and actual results may vary. Factors that may cause actual results to vary include, but are not limited to, certain transactions, certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, 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 and equipment, 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. These risks are described in more detail in the Annual Information Form of the Company. The Company does not assume the obligation to revise or update these forward-looking statements after the date of this report or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. For a more complete discussion, please refer to the Company's audited financial statements and MD&A for the year ended December 31, 2009 on the SEDAR website at www.sedar.com.
* Operating cash cost and Operating cash cost per ton are non-GAAP performance measures, and are furnished to provide additional information, and do not have a meaning within GAAP and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with GAAP.
SOURCE Mercator Minerals Ltd.
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