http://www.stockwatch.com/News/Item.aspx?bid=Z-C:AUN-2171505
"Aurcana loses $134.8-million (U.S.) in 2013
2014-05-01 09:11 ET - News Release
Mr. Lenic Rodriguez reports
AURCANA REPORTS 2013 FINANCIAL RESULTS
Aurcana Corp. has released its audited financial results for Dec. 31, 2013. The summary of the selected financial information should be read in conjunction with the audited financial statements, and the related management's discussion and analysis dated April 30, 2014, together referred to as the financial statements, which have been filed on SEDAR and the company's website. All figures are in U.S. dollars unless otherwise noted.
The 2013 earnings conference call will be at 1 p.m. Eastern Time on Friday, May 2. See bottom of press release for details.
The most significant highlights for 2013 were:
Silver equivalent production increased 14 per cent to 2,868,460 ounces in 2013 compared with 2,523,441 ounces in 2012;
Ore mined from La Negra increased 30 per cent to 869,027 tonnes in 2013 from 670,930 tonnes in 2012;
Ore milled from La Negra increased 19 per cent to 825,014 tonnes in 2013 from 691,260 tonnes in 2012;
Upgraded La Negra mill from 2,500 tonnes per day to 3,000 tonnes per day in 2013, a 20-per-cent increase in processing capacity;
Earnings from mining operations in 2013 decreased to $11.5-million, compared with $25-million in 2012, due to decreases in metals prices and producing lower-grade silver;
Revenues decreased to $45-million in 2013 from $56.9-million in 2012 due to decreases in metals prices and producing lower-grade silver;
Cash cost per tonne milled increased to $34.76 from $34.39 in 2012;
Production cash cost per silver equivalent to $10 per ounce in 2013, from $9.42 in 2012;
Silver production of 1,255,444 ounces in 2013 compared with 1,374,166 ounces in 2012;
Shafter silver mine in Texas was put on care and maintenance on Dec. 19, 2013, mainly as a result of lower metal prices and their impact on the project's mineral resources.
Earnings
The company had earnings from mining operations of $11.5-million for the year ended Dec. 31, 2013 (2012: $25-million); loss before taxes of $131.2-million (2012: earnings of $15.3-million); net loss of $134.8-million (2012: earnings of $10-million).
The decrease in earnings from mining operations was related to the decrease in the selling prices of metals produced by the company in 2013 as well as lower grades of silver. The loss resulting from the impairment of the Shafter property, plant and equipment, and mineral property assets in the Shafter mine, currently on care and maintenance, had an effect of $114.1-million plus another $15.9-million expense.
Revenue
During the year ended Dec. 31, 2013, the company generated revenues from the sale of 10,082 tonnes of copper concentrate (2012: 9,181 tonnes); 15,887 tonnes of zinc concentrate (2012: 15,415 tonnes); 3,006 tonnes of lead concentrate (2012: 3,441 tonnes); and 1,073,072 ounces of silver (2012: 1,231,740 ounces) for total net revenues of $45-million (2012: $56.9-million).
The average price for sales of copper, silver, zinc and lead during the year was copper -- $3.29 (2012: $3.59) per pound; silver -- $22.92 (2012: $31.12) per ounce; zinc -- 86 cents (2012: 88 cents) per pound and lead -- 97 cents (2012: 94 cents).
On Dec. 31, 2013, the company had $20.3-million in cash and a working capital deficiency of $3.7-million.
La Negra mine production highlights
19-per-cent increase in milled tonnes processed for a total of 825,014 tonnes during the year ended Dec. 31, 2013 (2012: 691,260 tonnes);
7-per-cent increase in copper, zinc and lead concentrate for a total of 30,418 tonnes produced during 2013 (2012: 28,363 tonnes);
Average silver grade per tonne was 60 grams in 2013 compared with 78 grams in 2012. The La Negra mine plan includes a transition to mining higher-grade mineralized zones from upper levels of the mine in 2014 and 2015;
Higher copper grades were mined in 2013 resulting in constrained mill throughput in 2013. A new larger capacity filter press has been commissioned in first quarter 2014;
La Negra's production increase was supported by 13,374 metres of diamond drilling for mining operations and exploration in 2013.
Aurcana has announced its refinancing from Orion Mine Finance (Master) Fund I LP, an affiliate of Orion Mine Finance Group. Details are in the press release dated April 29, 2014.
Lenic Rodriguez, president and chief executive officer, stated, "The continued production growth in 2013 and the completion of the expansion at La Negra position Aurcana Corp. to become a mid-tier silver producer in 2014 from the La Negra mine alone."
Summary
During 2013 Aurcana continued to upgrade and expand the La Negra mine. Metal concentrate prices continued to drop, and the company continued to adjust its cost structure, both on the operational and administrative side. In December, 2013, the Shafter mine was placed on care and maintenance due to economic conditions and low silver prices. With improved silver prices the company will re-evaluate initiating mining at Shafter. The company expects significant increases in production in 2014 and beyond.
Aurcana is scheduling a conference call to discuss the audited 2013 results at 10 a.m. Pacific Time on Friday, May 2, 2014.
Conference call details
Date: Friday, May 2, 2014
Time: 1 p.m. ET (10 a.m. PT)
Attendee access information
Canada and United States toll-free: 1-800-319-4610
Vancouver: 604-638-5340
Outside of Canada and the U.S.: 1-604-638-5340
A replay of the conference call will be available immediately following the conference by dialling 1-800-319-6413 in Canada and the U.S. (toll-free) or 1-604-638-9010 outside of Canada and the U.S. The required passcode is 2729 followed by the pound sign. Please dial in to the meeting at least five minutes prior to the start time using one of the attendee phone numbers. "
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