(Expressed in US dollars except where noted as
C$)
TORONTO, July 31, 2014 /CNW/ - Red Tiger Mining
Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported
its financial and operating results for the year ended December 31, 2013 and for the three months ended
March 31, 2014. This press release
should be read in conjunction with the Company's audited Financial
Statements for the year ended December 31,
2013, the unaudited Financial Statements for the three
months ended March 31, 2014 and
Management's Discussion and Analysis ("MD&A") for the
corresponding periods, available on the Company's website at
www.redtigermining.com and on SEDAR at www.sedar.com.
Q4 2013 Highlights
- Commercial production reached on June
30th (declared July
1st)
- Comex Grade 1 Copper cathodes production of 3,320 tonnes for
the second half of 2013
- Copper sales of $23,875,486 for
the second half of 2013 at an average realized price(1)
of $3.26 per pound
- Total cash costs per copper pound(1) of $1.50 and average realized margin(1)
of $1.76 per pound for the second
half of 2013
- Net loss of $993,424 or
$0.01 per share for the year ended
December 31st
- Adjusted EBITDA(1) of $8,402,653 or adjusted EBITDA per
share(1) of $0.09 for the
year ended December
31st
- Cash of $1,064,381 as at
December 31st
(1)
|
Refer to the section
on Non-IFRS Financial Performance Measures at end of the press
release. Reconciliation of these measures is described in the
MD&A on page 9.
|
Q1 2014 Highlights
- Comex Grade 1 Copper cathodes production of 1,619 tonnes for
the three months ended March 31,
2014
- Copper sales of $10,955,699 for
the three months ended March 31, 2014
at an average realized price(1) of $3.07 per pound
- Total cash costs per copper pound(1) of $1.33 and average realized margin(1)
of $1.74 per pound for the three
months ended March 31, 2014
- Net loss of $59,460 or
$0.00 per share for the three months
ended March 31, 2014
- Adjusted EBITDA(1) of $4,486,110 or adjusted EBITDA per
share(1) of $0.04 for the
three months ended March 31,
2014
- Cash of $1,116,016 as at
March 31, 2014
(1)
|
Refer to the section
on Non-IFRS Financial Performance Measures at end of the press
release. Reconciliation of these measures is described in the
MD&A on page 9.
|
Subsequent to March 31, 2014
Events
- On May 2, 2014 the Ontario
Securities Commission issued a management cease trade order (the
"MCTO"), as a result of the Corporation not filing its audited
financial statements for the year ended December 31, 2013, and the management's
discussion and analysis relating to the audited annual financial
statements for the year ended December 31,
2013 within the prescribed period. The MCTO imposes
restrictions on trading in the Corporation's securities by its
Chief Executive Officer, Mr. Robert
Wunder, and its Chief Financial Officer, Mr. David Lurie. Each of the proposed directors,
being Messrs. Finskiy, Hulley, Scola, Tchetvertnykh and Wunder were
directors of the Corporation at the time the MCTO was made. As of
the date of this MD&A report, the MCTO remains in effect.
- Under the Deutsche Bank loan agreement, the Company is in
breach of the loan covenant that requires the Company to provide DB
the audited consolidated financial statements for the year ended
December 31, 2013 and the condensed
interim consolidated financial statements for the three month
period ended March 31, 2014. Under
the loan agreement, the Company is required to file the audited
consolidated financial statements within 120 days of year-end and
the condensed interim consolidated financial statements within 60
days of quarter-end. As a result, the Company obtained a waiver
from DB, which extended the delivery date of filing the audited
consolidated financial statements for the year ended December 31, 2013 to July
31, 2014 and the condensed interim consolidated financial
statements for the three month period ended March 31, 2014 to August
31, 2014.
Restatement
The Company has reassessed the accounting for the following:
- Its derivative financial instruments, relating to the copper
collar swap derivative, copper call option derivative and
derivative asset. The Company had previously not recorded the fair
value of these derivative financial instruments for the three
months ended March 31, 2013. The
Company also had previously not recorded the fair value of the
derivative asset for the three and six months ended June 30, 2013 and the three and nine months ended
September 30, 2013. As a
result, the Company's consolidated statement of financial position
and consolidated statement of operations and comprehensive (loss)
earnings did not reflect the appropriate fair value liability and
gains (losses) for the related periods. This has been corrected
retrospectively in accordance with IAS 8 - Accounting Policies,
Changes in Accounting Estimates and Errors, resulting in the
adjustment of 2013 financial information.
- On September 30, 2013, the
Company reassessed the timeline to repay the principal and cash
interest to Gerald Metals. As of December
31, 2012, management had estimated that the repayment would
occur on June 30, 2014, however,
after reviewing the Company's estimated future monthly cash flows,
it has determined that the repayment of principal debt and cash
interest will occur on May 31, 2016,
one month after the DB loan is repaid at which point the Gerald
Metals Debt is no longer subordinated to the DB loan. As a result,
the Company's consolidated statement of financial position and
consolidated statement of operations and comprehensive income
(loss) earnings did not reflect the appropriate Gerald Metals loan
liability and gains (losses) for the three and nine months ended
September 30, 2013. This has been
corrected retrospectively in accordance with IAS 8 - Accounting
Policies, Changes in Accounting Estimates and Errors, resulting
in the adjustment of 2013 financial information.
- On declaring commercial production on July 1, 2013, the Company had incorrectly
capitalized certain expenditures during the three and nine months
ended September 30, 2013 and adjusted
the inventory recovery rates from 78% to 75% as at June 30, 2013 and September 30, 2013, which resulted in restatement
of accounting for inventory accounts. As a result, the Company's
consolidated statement of financial position and consolidated
statement of operations and comprehensive (loss) earnings did not
reflect the appropriate carrying values and gains (losses) for the
three and nine months ended September 30,
2013. This has been corrected retrospectively in accordance
with IAS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors, resulting in the adjustment of 2013
financial information.
Selected Operational and Financial Information
|
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
OPERATING
RESULTS
|
|
|
|
|
|
|
Mining
|
|
|
|
|
|
|
Ore mined
|
tonnes
|
331,465
|
293,355
|
248,342
|
230,432
|
185,742
|
Waste rock mined and
removed
|
tonnes
|
1,297,719
|
997,378
|
1,333,793
|
1,047,433
|
821,973
|
Total
mined
|
tonnes
|
1,629,184
|
1,290,733
|
1,582,135
|
1,277,865
|
1,007,715
|
Waste-to-ore
ratio
|
|
3.9
|
3.4
|
5.4
|
4.5
|
4.4
|
Average grade of
mined ore
|
total
copper
|
0.91%
|
0.84%
|
0.96%
|
1.25%
|
0.84%
|
|
|
|
|
|
|
|
Crushing and
Stacking
|
|
|
|
|
|
|
Ore crushed and
stacked
|
tonnes
|
319,457
|
292,329
|
241,599
|
230,326
|
181,992
|
Average grade of
stacked ore
|
total
copper
|
1.03%
|
0.97%
|
0.96%
|
1.50%
|
0.99%
|
|
|
|
|
|
|
|
Copper cathodes
produced
|
tonnes
|
1,619
|
1,784
|
1,536
|
1,108
|
949
|
|
|
|
|
|
|
|
FINANCIAL
RESULTS
|
|
|
|
|
|
|
Copper
sales(1)
|
$
|
10,955,699
|
12,884,804
|
10,990,682
|
-
|
-
|
Production
costs
|
$
|
4,058,486
|
6,861,256
|
2,329,048
|
-
|
-
|
Net earnings
(loss)
|
$
|
(59,460)
|
(5,121,019)
|
3,014,042
|
(350,792)
|
1,464,345
|
Total cash costs per
copper pound(2)
|
$/pound
|
1.33
|
1.78
|
1.12
|
-
|
-
|
Average realized
price(2)
|
$/pound
|
3.07
|
3.28
|
3.24
|
-
|
-
|
Average realized
margin(2)
|
$/pound
|
1.74
|
1.50
|
2.12
|
-
|
-
|
(1)
|
Prior to the Company
declaring commercial production on July 1, 2013, all previous
revenues were credited against capitalized project
costs.
|
(2)
|
Refer to the section
on Non-IFRS Financial Performance Measures at end of the press
release. Reconciliation of these measures is described in the
MD&A on page 9.
|
(3)
|
Total cash costs,
average realized price and average realized margin are calculated
on post-commercial pounds sold only.
|
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this press
release, including "total cash cost per copper pound", "average
realized price", "average realized margin", "adjusted EBITDA" and
"adjusted EBITDA per share". The Company believes these measures,
in addition to conventional measures prepared in accordance with
IFRS, provide investors an improved ability to evaluate the
underlying performance of the Company. The non-IFRS measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers.
Refer to pages 11 and 12 of the Company's MD&A for the year
ended December 31, 2013 and pages 9
through 11 of the Company's MD&A for the three months ended
March 31, 2014 for a reconciliation
of these measures.
Forward-Looking Information
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information is based on
plans, expectations and estimates of management at the date the
information is provided and is subject to certain factors and
assumptions, including, that the Company's financial condition and
development plans do not change as a result of unforeseen events,
that the Company obtains regulatory approval, future metal prices
and the demand and market outlook for metals. Forward-looking
information is subject to a variety of risks and uncertainties and
other factors that could cause plans, estimates and actual results
to vary materially from those projected in such forward-looking
information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, delays in
regulatory approval, risks associated with the interpretation of
data, the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's
expectations, as well as the other risks and uncertainties
applicable to mineral exploration and development activities and to
the Company as set forth in the Company's latest management
discussion and analysis filed under the Company's profile at
www.sedar.com. The Company undertakes no obligation to update
these forward-looking statements, other than as required by
applicable law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Red Tiger Mining Inc.