Minera IRL Limited

Minera IRL Limited

November 05, 2012 02:00 ET

Minera IRL Announces Third Quarter 2012 Financial Results

LONDON, UNITED KINGDOM and TORONTO, ONTARIO--(Marketwire - Nov. 5, 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 third quarter results for the 3 month period ended 30 September 2012 ("Q3 2012").

Q3 2012 Highlights (all $ denominates US dollars unless otherwise stated):


  • Gold sales 7,520 ounces (Q3 2011: 9,718 ounces). Average realised gold price $1,667 per ounce (Q3 2011: $1,683 per ounce)
  • Revenue $12.5 million (Q3 2011: $16.4 million)
  • Gross Profit $5.8 million (Q3 2011: $9.1 million)
  • EBITDA $4.8 million (Q3 2011: $8.6 million)
  • Profit after tax $1.7 million (Q3 2011:$3.6 million)
  • Cash balance of $10.4 million at end of quarter (Q3 2011: $21.0 million)
  • Post Q3 2012 end, availability of second $10 million tranche of Macquarie Bank Finance Facility and extension of Facility Repayment Date to 30 June 2014


  • Gold production from the Corihuarmi Gold Mine was ahead of management expectations at 7,660 ounces (Q3 2011: 9,718 ounces). Production declined due to anticipated lower grade ore
  • Corihuarmi site cash operating cost increased to $552 per ounce (Q3 2011: $356 per ounce) due to anticipated lower production
  • Environmental Impact Assessment has been approved for the Don Nicolas Project in mining friendly Santa Cruz Province, Argentina and the development permit issued. Financing discussions are progressing
  • The Definitive Feasibility Study on the Company's flagship Ollachea Project, Peru, is on track for completion during Q4, 2012
  • Excellent progress has been made on the exploration drive at Ollachea, reaching 669 meters as of 31 October 2012. Exploration of the eastern strike of the deposit by diamond drilling is scheduled to commence in Q4 2012. Underground access to the orebody is expected in Q1, 2013
Summary table:
Three months Three months Nine months Nine months
ended ended ended ended
30 September 30 September 30 September 30 September
2012 2011 2012 2011
Gold production 7,660 oz 9,718 oz 21,095 oz 26,446 oz
Gold sold 7,520 oz 9,740 oz 20,924 oz 26,310 oz
Sales revenue $ 12.5M $ 16.4M $ 34.7M $ 40.5M
Average sales price $ 1,667 per oz $ 1,683 per oz $ 1,658 per oz $ 1,539 per oz
Corihuami site cash operating costs $ 552 per oz $ 356 per oz $ 552 per oz $ 381 per oz
Gross Profit $ 5.8M $ 9.1M $ 15.2M $ 20.1M
EBITDA $ 4.8M $ 8.6M $ 11.7M $ 20.0M
Profit before tax $ 3.5M $ 6.2M $ 7.9M $ 13.2M
Profit after tax $ 1.7M $ 3.6M $ 3.5M $ 7.6M
Comprehensive Income/(Loss) $ 2.1M $ 3.5M $ 2.8M $ 7.2M

Commenting on the Q3 results, Courtney Chamberlain, Executive Chairman of Minera IRL said:

"The Corihuarmi Gold Mine in Peru continues to perform above our expectations and underpins the financial strength of the Company as we continue to invest in the development of our substantial pipeline of projects. It is a great credit to the operating efficiency of our production team to treat ore with a grade below 0.5g/t at a site cash operating cost well under $600 per ounce."

"On the development front we have almost completed the Definitive Feasibility Study on Ollachea, the Company's flagship project in southern Peru and are on schedule to announce the results during fourth quarter of 2012. Also at Ollachea, the exploration drive is progressing exceptionally well and has surpassed the half-way point reaching 669 meters by 31 October. Drilling from underground to explore the eastern strike of the deposit is scheduled to commence shortly."

"In Patagonia, Argentina, the Company has received approval of its Environmental Impact Assessment and been granted a Development Permit in less than 5 months. This is unprecedented turn-around of this process and management is very pleased with the support and assistance provided by the Santa Cruz government. We are now in a position to take the final steps towards the development of Don Nicolas."

The full Report & Accounts, including the Management Discussion and Analysis for the quarter ended 30 September, 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), 10:00 am Lima (PET) on November 5, 2012. To participate in the call please dial:

Toll Free (North America): 866-226-1792
Local Toronto and International: 416-340-2216
Global: 800-9559-6849

A live webcast and archive will be available at: http://www.gowebcasting.com/3980.

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 Limited
    (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 Europe Ltd (Co-broker, London)
    Stephen Foss or Martin Eales
    +44 (0)20 7653 4000

    Buchanan (Financial PR, London)
    Bobby Morse, Louise Mason or Gordon Poole
    +44 (0)20 7466 5000

    Hill+Knowlton Strategies (PR, Toronto)
    Rick Harari
    +1 416 413 4766