Minera IRL Limited
TSX : IRL
AIM : MIRL
LMA : MIRL

Minera IRL Limited

August 13, 2012 02:00 ET

Minera IRL Announces Second Quarter 2012 Financial Results

LONDON, UNITED KINGDOM and TORONTO, ONTARIO--(Marketwire - Aug. 13, 2012) - Minera IRL Limited ("Minera IRL" or the "Company"), (TSX:IRL)(AIM:MIRL)(BVLAC:MIRL) the Latin America gold mining company, is pleased to announce its unaudited second quarter results for the 3 month period ended 30 June 2012 ("Q2 2012").

Q2 2012 Highlights (all $ denominates US dollars unless otherwise stated):

Financial

  • Gold sales 6,889 ounces (Q2 2011: 8,688 ounces). Average realised gold price $1,611 per ounce (Q2 2011: $1,513 per ounce)

  • Revenue $11.1 million (Q2 2011: $13.2 million)

  • Gross Profit $4.1 million (Q2 2011: $6.5 million)

  • EBITDA $2.5 million (Q2 2011: $6.7 million)

  • Profit after tax $0.1 million (Q2 2011:$2.7 million)

  • Cash balance of $22.9 million at end of quarter (Q2 2011: $24.6 million)

Operational

  • Gold production from the Corihuarmi Gold Mine was ahead of management expectations at 6,889 ounces (Q2 2011: 8,688 ounces). The decline in production due to anticipated lower grade

  • Corihuarmi site cash operating costs are $604 per ounce (Q2 2011: $392 per ounce)

  • Infill drilling has confirmed the resource estimate within the Minapampa Zone at the Ollachea Gold Project

  • The Surface Rights Agreement for the Ollachea Project was extended for a period of 30 years

  • Permitting process commenced with the Environmental Impact Assessment (EIA) for the Don Nicolas Project, Argentina, being presented to the Secretary of Mining for the Santa Cruz Province

  • A Social License Agreement was signed for a period of 10 years with the communities of Jaramillo and Fitz Roy demonstrating strong support for the Don Nicolas Project.
Summary table:
Quarter to 30 June 2012 Quarter to 30 June 2011 Half year to 30 June 2012 Half year to 30 June 2011
Gold production 6,688 oz 8,775 oz 13,435 oz 16,728 oz
Gold sold 6,889 oz 8,688 oz 13,404 oz 16,570 oz
Sales revenue $ 11.1M $ 13.2M $ 22.2M $ 24.3M
Average sales price $ 1,611 per oz $ 1,513 per oz $ 1,654 per oz $ 1,454 per oz
Corihuami site cash operating costs $ 604 per oz $ 392 per oz $ 552 per oz $ 396 per oz
Gross Profit $ 4.1M $ 6.5M $ 9.4M $ 11.0M
EBITDA1 $ 2.5M $ 6.7M $ 6.9M $ 11.5M
Profit before tax1 $ 1.2M $ 4.5M $ 4.3M $ 7.0M
Profit after tax1 $ 0.1M $ 2.7M $ 1.8M $ 4.0M
Total Income/(Loss)1 $ (1.0)M $ 2.6M $ 0.7M $ 3.7M
1Includes non-recurring items such as closure of the Buenos Aires office and non-cash items associated with granting of incentive stock options - see Financial Statements for more details.

Commenting on the Q2 results, Courtney Chamberlain, Executive Chairman of Minera IRL:

"The Corihuarmi Gold Mine in Peru continues to perform above our expectations and underpins the financial strength of the Company for the short term as we continue to invest in the development of our substantial pipeline of projects."

"As previously stated, the grade at Corihuarmi will continue to decline as the mine matures. Despite this, the mine continues to perform well and is generating strong cash flows due to a focus on controlling site operating costs and maximizing throughput. To date the Corihuarmi mine has produced approximately 164,000 ounces, which is 48% more gold than the 111,000 ounces estimated in the original feasibility study. Furthermore, the Company has already extended the anticipated mine life by more than three years to 2015 and we believe we have opportunities to extend the life of mine even further."

"On the development front, good progress was made on the feasibility study, due for completion in the fourth quarter 2012, at the Company's flagship project, Ollachea, in southern Peru. Also at Ollachea, progress on the exploration drive has reached more than 200 meters and drilling from underground to explore the eastern strike of the deposit is scheduled to commence later in the year. In Patagonia, Argentina, permitting on the Don Nicolas Project was commenced with the submission of the Environmental Impact Assessment."

"I am pleased with the progress Minera IRL has made in its stated strategy of bringing the Ollachea and Don Nicolas gold projects into production over the next 2 to 3 years and becoming a mid tier gold producer."

The full Report & Accounts, including the Management Discussion and Analysis for the quarter ended 30 June, 2012 are available from the Company's website www.minera-irl.com and from SEDAR.

Following the release, Minera IRL plans to host a conference call at 10:00 am Toronto (EDT), 3:00 pm UK (BST), 09:00 am Lima (PET)on August 13, 2012. To participate in the call please dial:

Toll Free (North America): 800-355-4959
Local Toronto and International: 416-695-6617
Global: 800-4222-8835

A live webcast and archive will be available at: http://www.gowebcasting.com/3690

REPLAY: Toll Free Replay call (North America): 800-408-3053
International / Toronto Replay Call: 905-694-9451
The replay is available till August 20th, 2012
Passcode: 1088865

Minera IRL Limited is the AIM traded, TSX and BVL listed holding company of precious metals mining and exploration companies focused in Latin America. Minera IRL is led by an experienced senior management team with extensive industry experience, particularly operating in South America. The Group operates the Corihuarmi Gold Mine and the advanced gold projects Ollachea in Peru and Don Nicolas in Argentina. For more information, please visit www.minera-irl.com.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law or regulation, Minera IRL Limited does not intend to update any forward-looking statements to conform these statements to actual results.

Competent Persons Statement

The preparation of the technical information contained herein was supervised and reviewed by Courtney Chamberlain, Executive Chairman of the Company, BSc and MSc Metallurgical Engineering, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM) and Donald McIver, VP Exploration of the Company, MSc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (AUSIMM), who are recognized as Qualified Persons for the purposes of National Instrument 43-101, and who have reviewed and approved the technical information in this press release.

Quality Assurance and Quality Control Procedures Disclosure

The Company has implemented and maintains a Minera IRL quality assurance/quality control (QA/QC) protocol on its projects to ensure best industry practice in sampling and analysis of exploration and resource definition samples. The insertion of field duplicates, certified standards and blank samples into the sample stream form part of the MIRL procedure (these act as an independent check on contamination, precision and accuracy in the analytical laboratory).

Assay results are reported once rigorous QAQC procedures have been approved.

Independent Audit Programs

Towards maintaining compliancy with international standards as they pertain to the minerals industry resource evaluation and estimation procedure, MIRL regularly contracts the services of industry experts to conduct detailed audits of established QAQC procedures.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

Contact Information

  • Minera IRL
    Trish Kent
    Vice President, Corporate Relations
    +511 418 1230

    Canaccord Genuity Ltd (Nominated Adviser & Broker, London)
    John Prior or Adam Miller
    +44 (0)20 7523 8350

    finnCap (Co-broker, London)
    Geoff Nash or Matthew Robinson (Corporate Finance)
    Joanna Weaving (Corporate Broking)
    +44 (0)20 7600 1658

    RBC Capital Markets (Co-broker, London)
    Stephen Foss or Martin Eales
    +44 (0)20 7653 4000

    Buchanan (Financial PR, London)
    Bobby Morse or James Strong
    +44 (0)20 7466 5000