Malaga Inc.
TSX : MLG

Malaga Inc.

April 11, 2011 07:00 ET

Malaga Reports Record Sales of US $4.5 Million in the First Quarter of 2011

MONTREAL, QUEBEC--(Marketwire - April 11, 2011) - Malaga Inc. (TSX:MLG) is pleased to report record tungsten sales for the first quarter of 2011. Malaga generated US $4.5 million in tungsten sales, up nearly 55% from US $2.9 million in the fourth quarter of 2010. As of April 8, 2011, the APT reference price was US $405 per MTU*, 23% higher than the price of US $330 at December 31, 2010. This price increase is primarily due to strong tungsten demand that exceeds global supply. Company management is of the opinion that this supply shortage will persist throughout 2011. The Company still expects to generate net earnings in the first quarter of 2011 and produce 80,000 MTU in 2011.

*MTU = metric tonne unit = 10 kg

Q1 2011Q4 2010
Tungsten sales in MTU18,09014,879
Tungsten production in MTU17,49316,341

"Malaga has surpassed first quarter sales targets, and we are maintaining our profitability and mine development objectives for 2011," said Pierre Monet, President of Malaga.

Malaga expects to report its quarterly financial results in the week of June 13, 2011, and is issuing a reminder that it is adopting international financial reporting standards (IFRS) in 2011.

ABOUT MALAGA INC.

Malaga Inc. owns and operates a mine in Peru and is one of the few producers of tungsten outside of China. Malaga is a low cost producer due to the availability of hydroelectric power at its Pasto Bueno property in Peru. Future plans are to increase production and explore the property to increase reserves and resources.

FORWARD‐LOOKING STATEMENTS

Certain statements in the foregoing may constitute forward‐looking statements which involve known and unknown risks, uncertainties and other factors that may cause Malaga's actual results, performance or achievements or industry results to be materially different from any future result, performance or achievement expressed or implied by such forward‐looking statements. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release.

Contact Information

  • Malaga Inc.
    Jean Martineau
    Chairman of the Board and Chief Executive Officer
    514-288-3224

    Malaga Inc.
    Pierre Monet
    President
    514-288-3224

    Sun International Communications
    Nicole Blanchard
    Corporate Strategy and Investor Relations
    450-973-6600