TSX: TVI OTCQX: TVIPF
CALGARY, Aug. 13, 2013 /CNW/ - TVI Pacific Inc. (TSX:
TVI) (OTCQX: TVIPF) (TVI or the Company) today announced its
unaudited, consolidated
financial and operational results for the quarter ended
June 30, 2013.
For a thorough explanation of the points discussed in this news
release,
shareholders are encouraged to read the unaudited interim
consolidated
financial statements, prepared in accordance with International
Financial Reporting Standards (IFRS), and the management's
discussion
and analysis for the periods ended June 30,
2013 and June 30, 2012 and
the audited consolidated financial statements for the years
ended
December 31, 2012 and 2011.
These documents were filed with certain
securities regulators in Canada,
and are available on our web site (www.tvipacific.com or under our
profile on SEDAR www.sedar.com).
Half Year 2013 Highlights
Total net revenues of $27.2
million
Earnings before interest, depreciation, accretion and share of loss
of
associates of $1.2 million
Net loss of $4.9 million
Cash balance of $9.1 million at
June 30, 2013
Short term debt facilities of $9.2
million (average interest rate of
2.0%)
A working capital surplus of $6.3
million
Financial Highlights
|
|
|
|
Quarter ended
June 30, 2013
|
Quarter ended
June 30, 2012
|
Quarter ended
March 31, 2013
|
?
|
|
|
Gross revenue ($ million)
|
$20.1
|
$26.5
|
$11.4
|
?
|
|
|
Net revenue ($ million)
|
$17.0
|
$22.6
|
$10.2
|
?
|
|
|
Total cost per Copper Pound Equivalent (1)
(US$)
|
$3.27
|
$2.62
|
$2.66
|
?
|
|
|
Production cash cost per Copper Pound Equivalent (2)
(US$)
|
$1.89
|
$1.29
|
$1.79
|
?
|
|
|
Total cash cost per Copper Pound Equivalent net of by-products
(3) (US$)
|
$1.48
|
$0.65
|
$1.48
|
?
|
|
|
Net income (loss) ($ million)
|
($4.3)
|
$2.1
|
($0.6)
|
?
|
|
|
Basic net income (loss) per share
|
($0.007)
|
$0.003
|
($0.001)
|
?
|
|
|
Average copper price received (US$/lb)
|
$3.25
|
$3.57
|
$3.62
|
?
|
|
|
Cash balance at quarter end ($ millions)
|
$9.1
|
$17.5
|
$7.6
|
?
|
|
|
Letters of credit and loan facilities ($ millions)
(4)
|
$9.2
|
$12.9
|
$6.9
|
?
|
|
|
Working capital surplus ($ millions)
|
$6.3
|
$13.3
|
$11.3
|
(1) Includes selling
expenses and amortization expenses
|
(2) Excludes selling
expenses and amortization expenses
|
(3) Includes selling
expenses and excludes amortization expenses
|
(4) Average interest rate
of: 2.00% for Q2 2013, 2.04% for Q2 2012 and 2.0%
for Q1 2013
|
The mining segment generated net revenues of $16.8 million in Q2 2013
from the sale of concentrates, net of treatment, refining and
penalties, and a further $0.2 million
from drilling and other services
to third party customers. Revenue generated from the sale of
concentrates comprised two shipments of copper concentrate
(35th and 36th) for a total of 10,418 dmt, as
compared to two completed shipments of
copper concentrate and one shipment of zinc concentrate during the
same
period in 2012 that generated $22.6
million net revenue.
During Q2 2013, TVI had a net loss of $4.3
million compared to a net
income of $2.1 million for Q2 2012. A
key cause of the loss was no
comparative shipment of zinc concentrate, which had generated
$4
million in gross revenue through the same period in
2012. TVI
completed its sixth shipment of zinc concentrate on July 27th, 2013 of 5,169 dmt and
expects to receive gross revenue of
approximately US$3.8 million for this
shipment (pending final assay and
price adjustments).
A 9% decline in copper price, 12% decline in gold price and 18%
decline
in silver price, as compared to Q2 2012, has also contributed to
the
net loss in Q2 2013, offset partly by improved gold recoveries
through
Q2 2013 and larger gold volumes sold.
As expected over the life of the mine, the copper feed grade
will
continue to decline. This is the result of the declining natural
grade
distribution of the mineral deposit as TVI mines deeper into the
pit
and follows its mining plan. However, production cash cost has
increased as a result of processing lower feed grades (0.73%)
through
the blending of ore to reduce penalty elements in the
concentrate,
though the increase has been offset in part by reduced mining cost
and
the continuing non-use of cyanide.
The net loss in the quarter has resulted also from the requirement
to
record TVI's proportionate share of net losses recognized by
Foyson
Resources Limited and Mindoro Resources Ltd. ("MRL"), in which
TVI
currently holds a 10.608% and 14.4% interest, respectively.
The share
of loss on investments recorded within the quarter is $1.2 million and
relates primarily to the impairment of investments held by
MRL.
Operational Highlights
|
Quarter ended
June 30, 2013
|
Quarter ended
June 30, 2012
|
Quarter ended
March 31, 2013
|
Average tonnes processed per day
|
2,593
|
2,520
|
2,483
|
Ore copper grade (%)
|
0.73
|
0.92
|
0.81
|
|
|
|
|
Copper concentrate copper grade (%)
|
18.23
|
18.46
|
17.81
|
Copper concentrate gold grade (g/t)
|
10.41
|
9.48
|
11.33
|
Copper concentrate silver grade (g/t)
|
349.26
|
370.51
|
365.11
|
Zinc concentrate zinc grade (g/t)
|
44.60
|
49.64
|
37.01
|
|
|
|
|
Copper pound equivalent produced
|
4,938,238
|
6,997,256
|
5,338,328
|
|
Copper produced (lbs)
|
2,761,964
|
3,750,947
|
2,872,511
|
|
Gold produced (oz)
|
2,541
|
2,745
|
2,875
|
|
Silver produced (oz)
|
92,579
|
127,685
|
92,626
|
|
Zinc produced (lbs)
|
2,312,284
|
4,197,683
|
1,423,165
|
During Q2 2013, mill throughput averaged 2,593 dry metric tonnes
per
day, totaling 235,922 tonnes. As projected, only a portion of
original
ore reserves was consumed due to the additional material found
and
mined during the period. This material, consisting of banded
sulphides
with low-grade chlorite schists, was used as a blending material
to
optimize mill recoveries and was located both inside and outside
the
pit shell and not included in the original ore reserves. An
updated
tonnage estimate based on lithologic logs and assay data in
exploration
holes is being examined with the assumption that the
mineralized
horizon could extend beyond the currently planned pit boundary.
Detailed metallurgical and ore reserve studies will continue to
be
undertaken to determine future processing scenarios and their
potential
impacts on the ore reserves and mine life.
Based on average daily mill throughput going forward of 2,600
tonnes per
day, open pit mining is estimated to be completed by the fourth
quarter
of this year while mill processing and concentrate shipments is
expected to continue into the first quarter of 2014 (subject to
change
in throughput to meet shipping commitments).
Approximately 5,000 dry metric tonne copper concentrate shipments
are
expected to occur approximately every 6 to 8 weeks, while zinc
concentrate shipments are expected approximately every 4 to 6
months.
To date, 36 copper concentrate shipments of approximately 5,000
dry
metric tonnes each and six zinc concentrate shipments have been
completed, totaling 25,456 dry metric tonnes. TVI expects to
complete
a further two copper concentrate shipments and one zinc
concentrate
shipment through 2013, in addition to the zinc concentrate
shipment
completed July 27th,
2013.
Cash Position
As of June 30, 2013, TVI had a total
of $9.2 million in short term
debt
facilities with an average interest rate of 2.0%. Cash on
hand was
$9.1 million at the same
date.
For further information on TVI's operations please refer to the
Management's Discussion and Analysis available on TVI's website
www.tvipacific.com or under our profile on SEDAR
www.sedar.com).
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the
production, development, exploration and acquisition of
resource
projects in the Philippines and
Southeast Asia. The Company
produces
copper and zinc concentrates from its Canatuan mine and is
advancing
its Balabag Gold-Silver project. TVI is a
participant/operator in
several joint venture projects in the
Philippines and Papua New
Guinea
and also has an interest in an offshore Philippine oil
property.
The Toronto Stock Exchange has neither approved nor disapproved
of the
information contained herein.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements in this news release constitute
forward-looking
information. Forward-looking statements are often, but not
always,
identified by the use of words such as "seek", "anticipate",
"plan",
"continue", "estimate", "expect", "may", "will", "intend",
"could",
"might", "should", "believe", "schedule" and similar
expressions.
Forward-looking statements are based upon the opinions and
expectations
of TVI as at the effective date of such statements and, in
certain
cases, information received from or disseminated by third
parties.
Although the Company believes that the expectations reflected in
such
forward-looking statements are based upon reasonable assumptions
and
that information received from or disseminated by third parties
is
reliable, it can give no assurance that those expectations will
prove
to have been correct. Forward-looking statements are subject to
certain
risks and uncertainties (known and unknown) that could cause
actual
outcomes to differ materially from those anticipated or implied.
These
factors include, but are not limited to, such things as general
economic conditions in Canada,
the United States, the Philippines and
elsewhere; volatility of prices for precious metals, base metals,
oil
and gas; commodity supply and demand; fluctuations in currency
and
interest rates; inherent risks associated with the exploration
and
development of mining properties; inherent risks associated with
the
exploration of oil and gas properties; ultimate recoverability
of
reserves; production, timing, results and costs of exploration
and
development activities; political or civil unrest; availability
of
financial resources or third-party financing; new laws (domestic
or
foreign); changes in administrative practices; changes in
exploration
plans or budgets; and availability of personnel and equipment
(including mechanical problems). Accordingly, readers should not
place
undue reliance upon the forward-looking statements contained in
this
news release and such forward-looking statements should not be
interpreted or regarded as guarantees of future outcomes.
Forward-looking statements regarding forward production costs
and
shipping and refining costs are based on current and previous
mineral
reserve and resource estimates, current mining and processing
activities, prior experiences of management with mining and
processing
activities, the current development and operating plan, efficiency
and
effectiveness of the sulphide plant, and the Company's overall
plans,
budget and strategy for Canatuan (which are all subject to
change).
Forward-looking statements regarding the remaining mine life of
the
Canatuan deposit are based on current and previous mineral reserve
and
resource estimates, current mining and processing activities,
prior
experiences of management with mining and processing activities,
the
current development and operating plan, efficiency and
effectiveness of
the sulphide plant, and the Company's overall plans, budget and
strategy for Canatuan (which are all subject to change).
Forward-looking statements respecting the copper and zinc
concentrate
shipping schedules are based on the Company's previous experience
with
concentrate shipments, current mining and processing
activities,
current and previous mineral reserve and resource estimates,
discussions to date with the off-take partner, efficiency and
effectiveness of the sulphide plant, and the Company's overall
plans,
budget and strategy for Canatuan (which are all subject to
change).
The forward-looking statements of the Company contained in this
news
release are expressly qualified, in their entirety, by this
cautionary
statement. Various risks to which TVI and its affiliates are
exposed in
the conduct of their business are described in detail in the
Company's
Annual Information Form for the year ended December 31, 2012, which was
filed on SEDAR on March 19, 2013, and
is available at www.SEDAR.com. Subject to applicable securities
laws, the Company does not undertake
any obligation to publicly revise the forward-looking
statements
included in this news release to reflect subsequent events or
circumstances, except as required by law.
SOURCE TVI Pacific Inc.