TSX: TVI OTCQX: TVIPF
CALGARY, May 14, 2013 /CNW/ - TVI Pacific Inc. (TSX:
TVI) (OTCQX: TVIPF) (TVI or the Company) today announced its
unaudited, consolidated
financial and operational results for the quarter ended
March 31, 2013.
For a thorough explanation of the points discussed in this news
release,
shareholders are encouraged to read the unaudited interim
consolidated
financial statements, prepared in accordance with International
Financial Reporting Standards (IFRS), and the management's
discussion
and analysis for the quarters ended March
31, 2013 and March 31,
2012,
and the audited consolidated financial statements for the years
ended
December 31, 2012 and 2011.
These documents were filed with certain
securities regulators in Canada,
and are available on our web site (www.tvipacific.com or under our
profile on SEDAR www.sedar.com).
Q1 2013 Highlights
Net revenue of $10.2 million realized
from the mining segment
Net loss of $0.6 million
Earnings before interest, depreciation and accretion of
$1.9 million
Cash balance of $7.6 million at
quarter end
Short term debt facilities of $6.9
million (average interest rate of
2.00%)
A working capital surplus of $11.3
million
Financial Highlights
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Quarter ended
March 31, 2013
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Quarter ended
March 31, 2012
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Quarter ended
December 31,
2012
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Gross revenue ($ million)
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$11.4
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$16.9
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$24.0
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Net revenue ($ million)
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$10.2
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$14.4
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$20.6
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Total cost per Copper Pound Equivalent(1)(US$)
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$2.26
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$3.04
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$2.63
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Production cash cost per Copper Pound
Equivalent(2)(US$)
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$1.79
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$1.70
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$1.34
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Total cash cost per Copper Pound Equivalent
net of by-products(3)(US$)
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$1.48
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$1.17
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$0.69
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Net income (loss) ($ million)
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($0.6)
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($2.3)
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$5.0
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Basic net income (loss) per share
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($0.001)
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($0.004)
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$0.009
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Average copper price received (US$/lb)
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$3.62
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$3.85
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$3.59
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Cash balance at quarter end ($ millions)
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$7.6
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$20.4
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$16.0
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Letters of credit and loan facilities ($
millions)(4)
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$6.9
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$13.9
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$9.9
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Working capital surplus ($ millions)
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$11.3
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$12.4
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$13.7
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(1)
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Includes selling expenses and amortization expenses
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(2)
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Excludes selling expenses and amortization expenses
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(3)
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Includes selling expenses and excludes amortization
expenses
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(4)
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Average interest rate of: 2.0% for Q1 2013, 1.93% for Q1 2012
and 2.0%
for Q4 2012
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The mining segment generated net revenues of $9.8 million in Q1 2013
from the sale of concentrates, net of treatment, refining and
penalties, and a further $0.4 million
from drilling and other services
to third party customers. Revenue generated from the sale of
concentrates comprised one shipment of copper concentrate, as
compared
to one completed shipment of copper concentrate and one shipment
of
zinc concentrate during the same period in 2012 that generated
$14.4
million net revenue.
During Q1 2013, TVI had a net loss of $0.6
million compared to a net
loss of $2.3 million for Q1 2012. The
net loss was primarily due to the
following:
Average copper prices in Q1 2013 declined 6% to US$3.62/lb from
US$3.85/lb in Q1 2012;
No zinc concentrate was shipped in Q1 2013, while Q1 2012 included
one
shipment that contributed gross revenues of $3,348,776.
But the net loss was reduced by:
Q1 2013 accrual of net smelter return (NSR) payments from the Rapu
Rapu
Group of US $0.5 million, which were
subsequently collected in April
2013 together with outstanding Q4 2012 NSR payments.
Lower depreciation, depletion and accretion expense for the period
ended
March 31, 2013, as a function of
lower throughput and volume of metals
produced within the period as well as a revision in estimated
residual
value of plant and equipment. Depreciation, depletion and
accretion
expense for the period ended March 31,
2013 was equal to approximately
$2.4 million, as compared to
$4.3 million recorded during the
same
period in 2012.
Operational Highlights
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Quarter ended
March 31, 2013
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Quarter ended
March 31, 2012
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Quarter ended
December 31, 2012
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Average tonnes processed per day
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2,483
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2,744
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2,765
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Ore copper grade (%)
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0.81
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0.85
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0.88
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Concentrate copper grade (%)
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17.81
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18.19
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17.91
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Concentrate gold grade (g/t)
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11.33
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7.70
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10.51
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Concentrate silver grade (g/t)
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365.11
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377.91
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402.57
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Concentrate zinc grade (g/t)
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37.01
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48.88
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46.77
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Copper pound equivalent produced
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5,338,328
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6,527,072
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7,638,715
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Copper produced (lbs)
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2,872,511
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3,356,555
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3,923,719
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Gold produced (oz)
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2,875
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2,061
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3,539
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Silver produced (oz)
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92,626
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123,917
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143,969
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Zinc produced (lbs)
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1,423,165
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4,841,896
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2,790,187
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In Q1 2013 average throughput decreased to 2,483 from 2,765 dry
metric
tonnes (dmt) per day in Q4 2012. The drop in throughput was
mainly due
to the scheduled plant shutdown to replace the power generating
units.
The feed grade was however increased to be higher than the plan
to
offset the impact of the low mill throughput.
During Q1 2013, mill throughput averaged 2,483 dry metric tonnes
per
day, totaling 223,514 tonnes. As projected, only a portion of
original
ore reserves was consumed due to the additional material found
and
mined during the period. This material, consisting of banded
sulphides
with low-grade chlorite schists, was used as a blending material
to
optimize mill recoveries and was located both inside and outside
the
pit shell and not included in the original ore reserves.
Detailed
metallurgical and ore reserve studies will continue to be
undertaken to
determine future processing scenarios and their potential impacts
on
the ore reserves and mine life.
Based on average daily mill throughput going forward of 2,600
tonnes per
day, open pit mining is estimated to be completed by the fourth
quarter
of this year while mill processing and concentrate shipments
will
continue into the first quarter of 2014 (subject to change in
throughput to meet shipping commitments).
In Q1 2013, TVI completed one copper concentrate shipment
(34th) for a total of 5,089 dmt. For the first quarter
of 2013 no shipment of
zinc concentrate was made. The next shipment of zinc concentrate
is
planned for the middle of 2013.
Approximately 5,000 dry metric tonne copper concentrate shipments
are
expected to occur approximately every 8 weeks, while zinc
concentrate
shipments are expected approximately every 4 to 6 months. To
date, 35
copper concentrate shipments of approximately 5,000 dry metric
tonnes
each and five zinc concentrate shipments have been completed,
totaling
20,287 dry metric tonnes. The 35th copper shipment completed
loading on
April 26, 2013. TVI expects to
complete a further four copper
concentrate shipments and two zinc concentrate shipments through
2013.
Cash Position
As of March 31, 2013, TVI had short
term debt facilities totaling $6.9
million at an interest rate averaging 2.0%. Cash on
hand was $7.6
million at the same date.
For further information on TVI's operations please refer to the
Management's Discussion and Analysis available on TVI's website
www.tvipacific.com or under our profile on SEDAR
(www.sedar.com).
About TVI Pacific Inc.
TVI Pacific Inc. is a publicly-traded Canadian company that is
focused
on the production, development, exploration and acquisition of
resource
projects in the Philippines. TVI
produces copper and zinc concentrates
from its Canatuan mine, is in pre-development stage at its Balabag
gold
and silver project. TVI also has an interest in an offshore
Philippine
oil property.
The Toronto Stock Exchange has neither approved nor disapproved
of the
information contained herein.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements in this news release constitute
forward-looking
information. Forward-looking statements are often, but not
always,
identified by the use of words such as "seek", "anticipate",
"plan",
"continue", "estimate", "expect", "may", "will", "intend",
"could",
"might", "should", "believe", "schedule" and similar
expressions.
Forward-looking statements are based upon the opinions and
expectations
of TVI as at the effective date of such statements and, in
certain
cases, information received from or disseminated by third
parties.
Although the Company believes that the expectations reflected in
such
forward-looking statements are based upon reasonable assumptions
and
that information received from or disseminated by third parties
is
reliable, it can give no assurance that those expectations will
prove
to have been correct. Forward-looking statements are subject to
certain
risks and uncertainties (known and unknown) that could cause
actual
outcomes to differ materially from those anticipated or implied.
These
factors include, but are not limited to, such things as general
economic conditions in Canada,
the United States, the Philippines and
elsewhere; volatility of prices for precious metals, base metals,
oil
and gas; commodity supply and demand; fluctuations in currency
and
interest rates; inherent risks associated with the exploration
and
development of mining properties; inherent risks associated with
the
exploration of oil and gas properties; ultimate recoverability
of
reserves; production, timing, results and costs of exploration
and
development activities; political or civil unrest; availability
of
financial resources or third-party financing; new laws (domestic
or
foreign); changes in administrative practices; changes in
exploration
plans or budgets; and availability of personnel and equipment
(including mechanical problems). Accordingly, readers should not
place
undue reliance upon the forward-looking statements contained in
this
news release and such forward-looking statements should not be
interpreted or regarded as guarantees of future outcomes.
Forward-looking statements regarding forward production costs
and
shipping and refining costs are based are based on current and
previous
mineral reserve and resource estimates, current mining and
processing
activities, prior experiences of management with mining and
processing
activities, the current development and operating plan, efficiency
and
effectiveness of the sulphide plant, and the Company's overall
plans,
budget and strategy for Canatuan (which are all subject to
change).
Forward-looking statements regarding the remaining mine life of
the
Canatuan deposit are based on current and previous mineral reserve
and
resource estimates, current mining and processing activities,
prior
experiences of management with mining and processing activities,
the
current development and operating plan, efficiency and
effectiveness of
the sulphide plant, and the Company's overall plans, budget and
strategy for Canatuan (which are all subject to change).
Forward-looking statements respecting the copper and zinc
concentrate
shipping schedules are based on the Company's previous experience
with
concentrate shipments, current mining and processing
activities,
current and previous mineral reserve and resource estimates,
discussions to date with the off-take partner, efficiency and
effectiveness of the sulphide plant, and the Company's overall
plans,
budget and strategy for Canatuan (which are all subject to
change).
Forward-looking statements regarding the nature and timing of
exploration at the Greater Canatuan Tenement Area (including EXPA
61,
Malusok and SE Malusok), Tamarok and the Company's other tenements
in
the Philippines are based upon
current and previous exploration
activities, management's experience with other exploration
programs
undertaken in the Philippines and
elsewhere, and the Company's overall
plans, budget and strategy (which are all subject to change).
In
certain cases, the timing of exploration activities in the Philippines
is dependent upon the receipt of free prior informed consent
from
indigenous communities and regulatory approvals from the government
of
the Philippines. Forward-looking
statements regarding expectations that
the Company will be able to find additional ore in the Greater
Canatuan
Tenement Area (including EXPA 61, Malusok and SE Malusok) are
based
upon current and previous exploration activities, management's
experience with other exploration programs undertaken in
the
Philippines and elsewhere, management's current and previous
experience
with mining and processing activities at Canatuan, and the
Company's
overall plans, budget and strategy (which are all subject to
change).
Forward-looking statements regarding the timing of an updated NI
43-101
report and optimized feasibility study for Balabag are based
upon
current and previous exploration activities, advice received
from
third-parties, and the Company's overall plans, budget and strategy
for
Balabag (which are all subject to change). Forward-looking
statements
regarding the resumption of drilling activities at Tamarok are
based on
the exploration carried out to date and the Company's overall
plans,
budget and strategy for Tamarok (which is subject to
change).
Forward-looking statements regarding the arrival date of
additional
drilling rigs in the Philippines
are based on discussions with third
parties.
The forward-looking statements of the Company contained in this
news
release are expressly qualified, in their entirety, by this
cautionary
statement. Various risks to which TVI and its affiliates are
exposed in
the conduct of their business are described in detail in the
Company's
Annual Information Form for the year ended December 31, 2012, which was
filed on SEDAR on March 19, 2013, and
is available at www.SEDAR.com. Subject to applicable securities
laws, the Company does not undertake
any obligation to publicly revise the forward-looking
statements
included in this news release to reflect subsequent events or
circumstances, except as required by law.
SOURCE TVI Pacific Inc.