TSX.V: ROK
VANCOUVER, July 29 /PRNewswire-FirstCall/ - Roca Mines Inc.
(TSX-V: ROK) ("Roca" or "the Company") has released its financial
results for the three and nine months ended May 31, 2010, including production and sales from
the MAX Molybdenum mine located in British Columbia, Canada. All dollar amounts
are stated in Canadian dollars unless otherwise indicated.
Q3-2010 Highlights
- MAX Molybdenum mine awarded British Columbia's 2009 Mining and
Sustainability Award in April of 2010;
- Government approval of Phase II MAX mine expansion plan to operate at
1,000 tpd;
- Revenues of $13.4 million for September 1, 2009 to May 31, 2010;
- Cash costs of $12.87 per lb (US$12.58) and $12.16 (US$11.62) per lb
of molybdenum produced during the three and nine month periods ended
May 31, 2010 respectively;
- Q1, Q2 and Q3 average molybdenum recoveries of over 95%; and
- Q1, Q2, and Q3 molybdenum in concentrate production of 362,633 lbs,
305,485 lbs and 369,026 lbs respectively.
MAX Molybdenum Mine - Production Results and Concentrate
Sales
Revenues of $13.4 million for the
nine months ended May 31, 2010 result
from shipments during the period and reflect final and/or estimated
final pricing at May 31, 2010. The
Company sells its concentrates to a UK-based buyer with sales
revenues based on average prevailing molybdenum oxide prices
subsequent to delivery.
The table below summarizes the average operating statistics for
the three months ended May 31,
2010:
-------------------------------------------------------------------------
MAX Mine Statistics Q3-2010
-------------------------------------------------------------------------
MAR '10 APR '10 MAY '10 TOTAL
------------------------------------
Molybdenum Produced (lbs)(1) 136,910 115,235 116,881 369,026
Average Head Grade (% Mo) 0.41 0.39 0.34
Molybdenum Recovery (%) 96 96 96
Mill Availability (%) 97 99 100
Average Daily Throughput (tpd) 505 461 514
-------------------------------------------------------------------------
Note 1: molybdenum contained in concentrate.
The MAX Mine and concentrator continue to operate at targeted
Phase I throughput rates with good efficiency and excellent
recovery. However, ore produced from the single production area
since October of 2009 has returned average head grades that are
below targets.
Cash costs of production during the third quarter improved over
the second quarter as a result of better throughput and higher
grade material received at the mill. Cash costs averaged
$12.87 per lb (US$12.58) of molybdenum sold during the third
quarter. For the nine months ended May 31,
2010 cash costs averaged Cdn$12.16 (US$11.62) per lb of molybdenum sold.
The grade management challenges encountered over the last three
quarters highlight the mine's current dependency on a single
producing stope. The development of multiple stopes in the Phase
II, 1,000 tpd plan will reduce the impact of the production
difficulties encountered during late 2009 and 2010.
Financial Results
The information in this news release and the selected financial
information should be read in conjunction with the interim
consolidated financial statements, and management discussion and
analysis, for the period ended May 31,
2010, which will be available at Roca's website at
www.rocamines.com.
During the nine months ended May 31,
2010, the Company recorded production revenues of
$13,410,199 and a net loss of
$1,884,872. The Company had operating
cash flows of $2,285,960 during the
same period. The Company reported revenues of $17,162,010 and a loss of $21,460,930 during the nine months ended
May 31, 2009 on significantly higher
sales of molybdenite concentrates during the prior year (and higher
depletion charges under the Phase I mine plan). General and
administrative expenses decreased over the prior year reflecting
the Company's continuous efforts to reduce costs.
Despite significantly lower molybdenum production during the
three months ended May 31, 2010,
production revenues increased to $6,277,773 with a net loss of only $11,833. The Company had revenues of $5,584,156 and a loss of $9,610,888 during the three months ended
May 31, 2009 on significantly lower
realized prices for concentrates in the prior year.
Summary Consolidated Statements of Operations and Loss
-------------------------------------------------------------------------
Three months ended Nine months ended
May 31, 2010 May 31, 2010
-------------------------------------------------------------------------
Total Revenues 6,277,773 13,410,199
-------------------------------------------------------------------------
Operating expenses (4,748,156) (12,611,044)
-------------------------------------------------------------------------
Inventory recovery 106,066 106,066
-------------------------------------------------------------------------
Depletion, amortization, accretion (499,403) (1,337,956)
-------------------------------------------------------------------------
Mining Income (Loss) 1,136,280 (432,735)
-------------------------------------------------------------------------
G&A, Stock-based comp., write-offs (931,239) (1,887,889)
-------------------------------------------------------------------------
Earnings (Loss) from Operations 205,041 (2,320,624)
-------------------------------------------------------------------------
Exchange gain (loss) and
other income (loss) (20,598) (151,759)
-------------------------------------------------------------------------
Income and mining tax provision (196,276) 587,511
-------------------------------------------------------------------------
Net Loss for the Period (11,833) (1,884,872)
-------------------------------------------------------------------------
Loss per Share - Basic and Diluted (0.01) (0.01)
-------------------------------------------------------------------------
Outlook
It remains management's belief that global recessionary events
have seriously eroded the supply of molybdenum and it contends that
a realization of supply and demand fundamentals in the medium-term
will result in positive changes to pricing. It is therefore
management's goal to advance production at MAX to the 1,000 tpd
rate to reduce unit costs and to preserve the opportunity to
produce concentrates in an appreciating price environment.
ROCA MINES INC.
"David Skerlec"
------------------------------------------
David J. Skerlec - Chief Financial Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Roca Mines Inc.