Mawson West Ltd.
TSX : MWE

Mawson West Ltd.

May 15, 2013 09:09 ET

Mawson West Announces Q1 Financial and Operating Results

PERTH, AUSTRALIA--(Marketwired - May 15, 2013) - Mawson West Limited (TSX:MWE) ("Mawson West" or "the Company"), an emerging Africa-focused copper producer, has released its financial results and related management discussion and analysis (MD&A) for Q1 2013.

Mawson West has delivered a solid quarter of operational performance from its flagship project in the Democratic Republic of Congo ("DRC"), including copper and silver production from Dikulushi, placing Mawson West on track to achieve the Company's full-year production target.

Key highlights of the first quarter include:

Financial

  • Revenue from copper and silver sales increased to $44.5(1) million for Q1 2013
  • Gross profit of $18.1 million, and a net profit attributable to Mawson West of $10.5 million
  • Average copper price received of $3.58 per pound ($7,893 per tonne)
Three months to March 31
(In thousands of dollars except as otherwise noted) 2013 2012
Revenue 1 44,482 5,099
Gross profit/(loss) 18,074 (5,801)
General, corporate and marketing (3,048) (1,705)
Associate impairment - -
Share-based payments (350) (1,019)
Other 2,728 1,531
Income tax (expense)/benefit (1,649) -
Net Income (Loss) attributable to Mawson West 10,464 (6,994)
Earnings (Loss) per Share (basic) (cents) 6.2 (4.9)
Earnings (Loss) per Share (diluted) (cents) 6.2 (4.9)
Realised copper price ($/tonne) 7,893 7,848
Copper in concentrate sold (tonnes) 4,698 601
C1 cost per pound ($) 0.31 6.18

Operational

  • Production of 5,197 tonnes of copper in concentrate and 449,678 ounces of silver in concentrate from the Dikulushi open pit during the quarter. The Company remains on track to achieve full-year guidance of 20,000 to 22,000 tonnes of copper
  • 152,530 tonnes of ore mined at an average grade of 5.51% copper
  • C1(2) costs during the quarter of $0.31 per pound of copper in concentrate produced, in line with published guidance of less than $0.35 per pound

Outlook

Mawson West remains focused on delivering shareholder value from the Company's ground position in the copper-rich DRC. The Company's guidance for 2013 production from Dikulushi remains unchanged, and the Kapulo project, which will be Mawson West's second producing mine, remains on track to begin commissioning in late 2013.

Mawson West Chief Executive Officer and Managing Director Bruce McFadzean said: "Against a backdrop of considerable uncertainty in global commodities markets, Mawson West delivered a solid performance over a number of metrics in the first quarter, which provides a sound platform for the Company to achieve its goals through the remainder of 2013. Production from Dikulushi has reached steady state, with costs in line with our previous guidance. We aim to build on this with the results of the Dikulushi underground study and the design review of Kapulo due in the current quarter, moving towards the start of commissioning at Kapulo towards the end of the year. Our US$11 million exploration programme is also ongoing, and we look forward to reporting back to shareholders on our progress."

About Mawson West

Mawson West is an Australian copper and silver-focused resource company listed on the Toronto Stock Exchange, with its head office in Perth, Western Australia.

The Company's approximate 7,300km² ground position in the DRC contains Mawson West's two key projects, the Dikulushi copper-silver mine and the Kapulo copper mine and provides multiple near-mine and stand-alone exploration opportunities.

(1) Revenues include revenue from silver sales and are stated net of smelter recovery, treatment, refining and transport costs.

(2) The term "C1 cost" is a non-IFRS financial performance measure. C1 costs are direct cash operating costs per pound of copper in concentrate produced, net of silver by-product credits. Direct cash operating costs per pound include all mining and processing costs, mine site overheads and realisation costs (including transport costs, treatment and refining costs and smelter recovery deductions) through to refined metal. The term C1 cost does not have any standardised meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this press release.

Contact Information

  • Mawson West Limited
    Mr Bruce McFadzean
    Chief Executive Officer and Managing Director
    +61 8 9485 9800
    +61 8 9486 8857 (FAX)
    bmcfadzean@mawsonwest.com

    Mawson West Limited
    Mr Mark Di Silvio
    Chief Financial Officer
    +61 8 9485 9800
    +61 8 9486 8857 (FAX)
    mdisilvio@mawsonwest.com

    Media:
    Mr Dudley White
    MAGNUS Investor Relations + Corporate Communication
    +61 2 8999 1002
    dwhite@magnus.net.au