SOURCE: Amara Mining plc

May 22, 2013 07:00 ET

Amara Mining plc Announces Q1 2013 RESULTS

LONDON--(Marketwired - May 22, 2013) -


22 May 2013                                       AIM:AMA / TSX:AMZ

                         Amara Mining plc
                   ("Amara" or "the Company")

                        Q1 2013 RESULTS

Amara Mining plc (formerly Cluff Gold plc), the dual AIM and TSX-listed
West African focused gold mining company, is pleased to announce its
results for the quarter ended 31 March 2013 ("Q1 2013").

HIGHLIGHTS

Operational

- Environmental Permit received for Sega Gold Project ("Sega") and
construction of haul road has begun - key milestones towards bringing
Sega into production in Q3 2013

- Mineral Resources at the Yaoure Gold Project ("Yaoure") increased
to 1.7 million Inferred ounces (34.6Mt at 1.52g/t) and 0.3 million
Indicated ounces (8.0Mt at 1.31g/t) - second Mineral Resource update
expected in H2 2013

- Further encouraging results received from in-fill drilling
programme at Yaoure including:
  o 21.0m at 7.8g/t from 23.0m in hole YDD0118

  o 9.0m at 7.2g/t from 211.0m (plus 5.0m at 3.3g/t from 223.0m) in
  hole YDD0142

- Baomahun Gold Project ("Baomahun") Feasibility Study on track for
delivery by the end of Q2 2013

- Business review and optimisation plan underway and cash
conservation measures successfully implemented

- Industry-leading safety record continues to strengthen - six
million man-hours achieved at Kalsaka Gold Mine ("Kalsaka") to January
2013 without a lost time injury

- Gold production from Kalsaka of 9,481 ounces due to anticipated
lower grades and reduced plant availability as a result of crusher
upgrade at a cash cost per ounce (inc. royalties) of US$1,215/oz

- 2013 production guidance of 50,000-60,000 ounces maintained
although expected to be second half weighted

Financial

- Kalsaka continues to operate profitably with EBITDA of US$3.1
million (Group EBITDA: US$1.3 million)

- Robust financial position with cash and liquid assets of US$23.7
million at 31 March 2013

Corporate

- Board strengthened through the appointment of the Right
Honourable Peter Hain MP as Non-Executive Director

                                             Q1 2013   Q4 2012  Q1 2012

Kalsaka

Total Gold Production (oz)                     9,481    11,480   12,504
Cash Costs inc. Royalties (US$/oz produced)    1,215     1,051    1,068
Average Realised Gold Price (US$/oz sold)      1,618     1,708    1,701

Group

Revenue (US$'000)                             13,990    19,646   23,605
EBITDA (US$'000)                               1,251     4,909    5,310
Basic EPS (cents)                             (1.68)    (2.43)   (0.89)

Peter Spivey, Chief Executive Officer of Amara, commented:"With the
optimisation of our business plan and our experience of
maintaining tight control on costs, Amara is well-positioned to face
the challenges of the current market. We have implemented a number of
measures to improve cost efficiency, including reassessing our mine
scheduling, evaluating our supply chain and curtailing exploration
expenditure in order to maintain a robust financial position. We
expect production to strengthen and cash costs to diminish in H2 2013
as we process higher grade ore from Kalsaka and the material from Sega
becomes available, and as such we remain confident in our ability to
achieve our full year production guidance. Our strategy of using cash
flow to underpin our growth assets lends Amara important flexibility
and we remain on track to deliver on our targets in 2013."

The Company will host an analyst conference call at 9:30am UK with a
simultaneous webcast. Dial in details are as follows:

Telephone number (toll free from UK): 0800 634 5205
Other parts of the world:             +44 (0) 208 817 9301
Passcode:                             10891662

To log into the webcast, which will be aired simultaneously, please go
to the homepage of the Company's website:  www.amaramining.com . The
webcast will subsequently be available for playback on this link.

A second conference call will be hosted at 9:30am EDT/2:30pm UK time
for North American analysts. Dial-in details are as follows:

Canada                                1866 404 5783
USA                                   1866 928 7517
Other parts of the world              +44 (0)203 139 4830
Participant PIN Code:                 12014083#

For more information please contact:
Amara Mining plc                      +44 (0)20 7398 1420
John McGloin, Chairman
Peter Spivey, Chief Executive Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor Relations

Canaccord Genuity Limited             +44 (0)20 7523 8350
(Nominated Adviser & Broker, London)
Andrew Chubb
Joe Weaving
Tim Redfern

Pelham Bell Pottinger                 +44 (0)20 7861 3232
(Financial Public Relations)
Charlie Vivian
Lorna Spears
James Macfarlane

Click on, or paste the following link into your web browser, to view
the associated PDF document.

 http://www.rns-pdf.londonstockexchange.com/rns/2764F_1-2013-5-22.pdf 



                    This information is provided by RNS
          The company news service from the London Stock Exchange

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