Aurcana Reports 2013 Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2014) -
Aurcana Corporation ("Aurcana" or the "Company")
(TSX-VENTURE:AUN)(OTCQX:AUNFF) is pleased to report its audited
financial results for December 31, 2013. The summary of the
selected financial information should be read in conjunction with
the audited financial statements and the related management's
discussion and analysis dated April 30, 2014 together referred to
as the "Financial Statements", which have been filed on SEDAR
(www.sedar.com) and the Company's website (http://www.aurcana.com).
All figures are in US dollars unless otherwise noted.
The 2013 Earnings Conference Call will be at 1:00 pm Eastern
Time on Friday, May 2. See bottom of press release for details.
The most significant highlights for 2013 were:
- Silver Equivalent production increased 14% to 2,868,460 ounces
in 2013 compared to 2,523,441 ounces in 2012.
- Ore mined from La Negra increased 30% to 869,027 tonnes in 2013
from 670,930 tonnes in 2012.
- Ore milled from La Negra increased 19% to 825,014 tonnes in
2013 from 691,260 tonnes in 2012.
- Upgraded La Negra mill from 2,500 tpd to 3,000 tpd in 2013, a
20% increase in processing capacity.
- Earnings from mining operations in 2013 decreased to $11.5
million, compared to $25.0 million in 2012, due to decreases in
metals prices and producing lower grade silver.
- Revenues decreased to $45.0 million in 2013 from $56.9 million
in 2012 due to decreases in metals prices and producing lower grade
silver.
- Cash cost per tonne milled increased to $34.76 from $34.39 in
2012.
- Production cash cost per silver equivalent to $10.00 ounce in
2013, from $9.42 in 2012.
- Silver production of 1,255,444 ounces in 2013 compared to
1,374,166 ounces in 2012.
- Shafter Silver Mine in Texas was put on care and maintenance on
December 19, 2013 mainly as a result of lower metal prices and
their impact on the project's mineral resources.
Earnings
The Company had earnings from mining operations of $11.5 million
for the year ended December 31, 2013 (2012: $25.0 million); loss
before taxes of ($131.2) million (2012: $15.3 million); earnings
($134.8) million net loss (2012: $10.0 million).
The decrease in earnings from mining operations was related to
the decrease in the selling prices of metals produced by the
Company in 2013 as well as lower grades of silver. The loss
resulting from the impairment of the Shafter property, plant and
equipment, and Mineral property assets in Shafter mine, currently
on care and maintenance had an effect of $114.1 million plus
another $15.9 million expense.
Revenue
During the year ended December 31, 2013, the Company generated
revenues from the sale of 10,082 tonnes of copper concentrate
(2012: 9,181 tonnes); 15,887 tonnes of zinc concentrate (2012:
15,415 tonnes); 3,006 tonnes of Lead Concentrate (2012: 3,441
tonnes); and 1,073,072 ounces of silver (2012: 1,231,740 ounces)
for total net revenues of $45.0 million (2012: $56.9 million).
The average price for sales of copper, silver, zinc and lead
during the year were copper; $3.29 (2012: $3.59) per pound; silver
$22.92 (2012: $31.12) per ounce; zinc $0.86 (2012: $0.88) per pound
and lead $0.97 (2012: $0.94).
On December 31, 2013 the Company had $20.3 million in cash and a
working capital deficiency of ($3.7) million.
La Negra Mine Production Highlights
- 19% increase in milled tonnes processed for a total of 825,014
tonnes during the year ended December 31, 2013, (2012:
691,260).
- 7% increase in copper, zinc and lead concentrate for a total of
30,418 tonnes produced during 2013 (2012: 28,363 tonnes).
- Average silver grade per tonne was 60 grams in 2013 compared to
78 grams in 2012. The La Negra mine plan includes a transition to
mining higher grade mineralized zones from upper levels of the mine
in 2014 and 2015.
- Higher copper grades were mined in 2013 resulting in
constrained mill through-put in 2013. A new larger capacity filter
press has been commissioned in Q1 2014.
- La Negra's production increase was supported by 13,374 metres
of diamond drilling for mining operations and exploration in
2013.
Aurcana has announced its re-financing from Orion Mine Finance
(Master) Fund I LP, an affiliate of Orion Mine Finance Group.
Details are in the Press Release dated April 29, 2014.
Mr. Lenic Rodriguez, President & CEO stated, "The continued
production growth in 2013 and the completion of the expansion at La
Negra position Aurcana Corporation to become a mid-tier silver
producer in 2014 from the La Negra mine alone."
Summary
During 2013 Aurcana continued to upgrade and expand the La Negra
Mine. Metal concentrate prices continued to drop, and the Company
continued to adjust its cost structure, both on the operational and
administrative side. In December 2013, the Shafter mine was placed
on care and maintenance, due to economic conditions and low silver
prices. With improved silver prices the Company will re-evaluate
initiating mining at Shafter. The Company expects significant
increases in production in 2014 and beyond.
To read complete Financial Statement click on this link:
http://www.aurcana.com/i/pdf/2013-Q4-FS.pdf
To read complete MD&A click on this link:
http://www.aurcana.com/i/pdf/2013-Q4-MDA.pdf
Aurcana Corporation is scheduling a conference call to discuss
the audited 2013 results at 1000 Hs PST on Friday, May 2, 2014.
Conference Call Details:
Date: Friday, May 2, 2014
Time: 1:00 PM EDT (10:00 AM Pacific)
Attendee Access Information:
1-800-319-4610 Canada
and USA Toll-free
604-638-5340
Vancouver
1-604-638-5340
Outside of Canada & USA
A replay of the conference call will be available immediately
following the conference by dialing 1-800-319-6413 in
Canada & USA (Toll-free) or 1-604-638-9010
outside of Canada and USA. The required pass code is 2729 followed
by the # sign. Please dial-in to the meeting at least 5 minutes
prior to the start time using one of the attendee phone
numbers.
Corporate
The Company's shares are also traded in the United States on
OTCQX under the symbol "AUNFF". Investors can find current
financial disclosure and Real-Time Level 2 quotes for the Company
on www.otcqx.com and www.otcmarkets.com.
About Aurcana Corporation: Aurcana Corporation is a primary
silver producing company with two properties: the La Negra Mine in
Mexico and the Shafter Mine in Texas, US. The latter was put on
care and maintenance in December 2013, in part due to depressed
silver prices. The Company continues to plan further expansion at
its La Negra Mine and to focus on surface exploration on its
extensive land holdings in the Maconi Mining District.
The technical information in this release has been reviewed
by J. Blackwell (PGeo.), a Qualified Person as defined by National
Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President & CEO
For further information, visit the website at
www.aurcana.com.
This news release contains certain forward-looking
statements, including statements regarding forecast silver
production, silver grades, recoveries, potential mineralization,
exploration result, future plans and objectives of the Company and
the business and anticipated financial performance of the Company.
These statements are forward-looking statements that involve
various risks and uncertainties. These forward-looking statements
include, but are not limited to, statements with respect to mining
and processing of mined ore, achieving projected recovery rates,
anticipated production rates and mine life, operating efficiencies,
costs and expenditures, changes in mineral resources and conversion
of mineral resources to proven and probable reserves, and other
information that is based on forecasts of future operational or
financial results, estimates of amounts not yet determinable and
assumptions of management.
Exploration results that include geophysics, sampling and
drill results on wide spacings may not be indicative of the
occurrence of a mineral deposit. Such results do not provide
assurance that further work will establish sufficient grade,
continuity, metallurgical characteristics and economic potential to
be classified as a category of mineral resource. A mineral resource
which is classified as "inferred" or indicated" has a great amount
of uncertainty as to its existence and economic and legal
feasibility. It cannot be assumed that any or part of an "indicated
mineral resource" or "inferred mineral resource" will ever be
upgraded to a higher category of resource. Investors are cautioned
not to assume that all or any part of mineral deposits in these
categories will ever be converted into proven and probable
reserves.
Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or does not
expect", "is expected", anticipates" or "does not anticipate"
"plans", "estimates" or "intends" or stating that certain actions,
events or results " may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements". Forward-looking statements
are subject to a variety of risks and uncertainties which could
cause actual events or results to materially differ from those
reflected in the forward-looking statements.
Actual results may differ materially from results
contemplated by the forward-looking statements. Important factors
that could differ materially from the Company's expectations
include, among others,risks related to international operations,
unsuccessful exploration results, conclusions of economic
evaluations and changes in project parameters as plans continue to
be refined as well as changes in metal prices, changes in the
availability of funding for mineral exploration and development,
unanticipated changes in key management personnel and general
economic conditions. When relying on forward-looking statements to
make decisions, investors and others should carefully consider the
foregoing factors and other uncertainties and should not place
undue reliance on such forward-looking statements. The Company does
not undertake to update any forward-looking statements, oral or
written, made by itself or on its behalf. Accordingly, readers
should not place undue reliance on forward-looking
statements.
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.
Aurcana Corporation(604) 331-9333Toll Free: (866) 532-9333(604)
633-9179www.aurcana.comGary LindseyCorporate
Relations(720)-273-6224gary@strata-star.com
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