TIDMOMI
Orosur Mining Inc. ("Orosur" or the "Company") (TSX/AIM: OMI), a
South American-focused gold producer, developer and explorer is
pleased to announce the results for its 2017 first quarter ended
August 31, 2016 ("Q1 17" or the "Quarter").
Highlights of Q1 FY17
-- Gold production of 9,950 oz, on the higher end of the Company's 35,000
- 40,000 oz guidance for the full year (Q1 16: 12,471 oz).
-- Cash operating costs of US$693/oz, significantly beating guidance of
between US$800 to US$900/oz (Q1 16: US$954/oz).
-- All-In-Sustaining costs ("AISC") of US$989/oz (Q1 16: US$1,166/oz).
The Company has maintained AISC below US$1,000/oz for the last
three
consecutive quarters now.
-- Net profit after tax of US$2.8M (Q1 16: loss of US$1.7M).
-- Cash generated from operations of US$4.8M (Q1 16: US$0.2M).
-- Total cash balance of US$5.0M (Q1 16: US$4.3M).
Operational & Quarter ended August 31
Financial
Summary1
Operating Results
2017 2016 Diff
Gold produced Ounces 9,950 12,471 (2,521)
Operating cash US$/oz 693 954 (261)
cost3
AISC US$/oz 989 1,166 (177)
Average price US$/oz 1,324 1,147 177
received
Financial Results
Revenue US$ '000 12,658 14,465 (1,807)
Net profit/(loss) US$ '000 2,759 (1,726) 4,485
after tax
Cash flow from US$ '000 4,795 173 4,622
operations2
Cash & Debt August 31, 2016 May 31, 2016 Diff
Summary
Cash balance US$ '000 4,982 4,320 662
Total debt US$ '000 289 352 (63)
Cash net of debt US$ '000 4,693 3,968 725
1 Results are based on IFRS and expressed in US dollars
2 Before non-cash working capital movements
3 Operating cash cost is total cost discounting royalties
and capital tax on production assets.
Ignacio Salazar, CEO of Orosur, said:
"We are very pleased to announce a strong quarter with cash
operating costs below US$700/oz, AISC below US$1,000/oz, net profit
US$2.8M and cash from operations of US$4.8M. The commitment,
additional work load and the tough decisions the team has had to
assume during the past year has positioned the Company well to take
advantage of gold price improvements this year and we are delighted
to be seeing the benefits.
I believe the financial results speak for themselves, and taken
together with the exploration and development progress we reported
last week, show this is an exciting time for the Company. That
said, we remain as pro-active as ever and are committed to making
the most of the current position of the Company for the benefit of
our shareholders and team. I very much look forward to the work and
results ahead."
FY17 Outlook & Guidance
The Company's forecast production guidance for FY17 remains
between 35,000 to 40,000 oz of gold at operating cash costs of
between US$800 - US$900/oz.
As in the past, variations in production and unit costs are
expected to occur, quarter on quarter, as the mine plan draws ore
from multiple sources at varying grades, stages of development and
stripping factors. The Company expects to have higher unit costs in
Q2 as underground staff and equipment are transferred from the
Arenal UG operation in its final months of production to the SGW UG
development which is expected to commence production by the end of
November 2016.
Q1 17 Financial Summary
Cash flow from operations before working capital was US$4.8
million compared to US$0.2 million for Q1 16, mainly as a result of
the higher gold prices received in Q1 17 and lower production rates
year over year. Net profit after tax was US$2.8 million compared
with a loss of US$1.7 million in Q1 16.
The Company invested US$1.9 million in capital expenditures and
US$0.6 million in exploration expenditures compared with US$1.0
million and US$1.0 million respectively in Q1 16. During the
Quarter, the Company advanced the development of the ramp and
access in the San Gregorio underground mine as planned and on
budget and commenced the construction of the phase 4A of the
tailings dam.
The cash balance at the end of the Quarter was US$5.0 million
compared with US$4.3 million at May 31, 2016. The Company's debt
balance was US$0.3 million compared to US$0.4 million at May 31,
2016.
Forward Looking Statements
All statements, other than statements of historical fact,
contained or incorporated by reference in this news release,
including any information as to the future financial or operating
performance of the Company, constitute "forward-looking statements"
within the meaning of certain securities laws, including the "safe
harbour" provisions of the Securities Act (Ontario) and the United
States Private Securities Litigation Reform Act of 1995 and are
based on expectations estimates and projections as of the date of
this news release. There can be no assurance that such statements
will prove to be accurate. Such statements are subject to
significant risks and uncertainties, and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements include, without limitation
success of exploration activities; permitting time lines; the
failure of plant; equipment or processes to operate as anticipated;
accidents; labour disputes; requirements for additional capital
title disputes or claims and limitations on insurance coverage. The
Company disclaims any intention or obligation to update or revise
any forward looking statements whether as a result of new
information, future events and such forward-looking statements,
except to the extent required by applicable law.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer,
developer and explorer focused on identifying and advancing gold
projects in South America. The Company operates the only producing
gold mine in Uruguay (San Gregorio), and has assembled an
exploration portfolio of high quality assets in Uruguay, Chile and
Colombia. The Company is listed in Canada (TSX: OMI) and London
(AIM: OMI).
For more information please visit www.orosur.ca
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via Regulatory Information Service
('RIS'), this inside information is now considered to be in the
public domain.
Orosur Mining Inc.
Condensed Interim Consolidated
Unaudited
Statements of Financial Position
Thousands of United States Dollars,
except where indicated
As at August 31, As at May 31,
2016 ($) 2016 ($)
Assets
Cash 4,982 4,320
Accounts receivable and other assets 1,983 1,770
Inventories 12,794 12,069
Total current assets 19,759 18,159
Accounts receivable and other assets 550 550
Property plant and equipment 10,209 10,106
and development costs
Exploration and evaluation costs 17,729 17,250
Deferred income tax assets 2,534 2,534
Restricted cash 229 221
Total non-current assets 31,251 30,661
Total assets 51,010 48,820
Liabilities and Shareholders' Equity
Trade payables and other 10,112 10,586
accrued liabilities
Current portion of long-term debt 237 253
Environmental rehabilitation provisions 360 360
Total current liabilities 10,709 11,199
Long-term debt 52 99
Environmental rehabilitation provisions 5,281 5,327
Total non-current liabilities 5,333 5,426
Total liabilities 16,042 16,625
Capital stock 60,849 60,751
Contributed surplus 5,878 5,925
Deficit (30,738) (33,497)
Currency translation reserve (1,021) (984)
Total shareholders' equity 34,968 32,195
Total liabilities and 51,010 48,820
shareholders' equity
Orosur Mining Inc.
Condensed Interim Consolidated
Unaudited Statements of
profit/ (loss) and Comprehensive profit/(loss)
Thousands of United States Dollars,
except for per share amounts
Three months ended
August 31,
2016 ($) 2015 ($)
Sales 12,658 14,465
Cost of sales (9,243) (15,015)
Gross profit/(loss) 3,415 (550)
Corporate and administrative expenses (467) (631)
124 (1,114)
(9) (18)
(88) -
350 554
Net finance cost (45) (61)
Derivative loss (420) -
Net foreign exchange (loss)/gain (101) 78
(656) (1,192)
Profit/(loss) before income tax 2,759 (1,742)
Recovery/(Provision) for income taxes - 16
Total profit/(loss) for the period 2,759 (1,726)
Other comprehensive loss
Cumulative translation adjustment (37) (713)
Total comprehensive profit/(loss) 2,722 (2,439)
for the period
Profit/(loss) per common share
Basic and fully diluted 0.03 (0.02)
Orosur Mining Inc.
Condensed Interim Consolidated Unaudited
Statements of Cash Flows
Thousands of United States Dollars, except where indicated
Three months ended
August 31,
2016 ($) 2015 ($)
Net inflow/(outflow) of cash related
to the following activities
Cash flow from operating activities
Net profit/(loss) for the period 2,759 (1,726)
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation 1,766 1,814
Exploration and evaluation expenses written off 9 18
Obsolescence provision 88 -
Fair value of derivatives 94 -
Accretion of asset retirement obligation 19 6
Stock based compensation 28 7
Gain on sale of property, plant and equipment - (20)
Other 32 74
Subtotal 4,795 173
Changes in working capital:
Accounts receivable and other assets (308) (175)
Inventories (812) 1,349
Trade payables and other accrued liabilities (474) 56
Net cash generated from operating activities 3,201 1,403
Cash flow from financing activities
Loan payments (63) (355)
Proceeds on sale of common shares of Anillo SPA - 714
Net cash used in financing activities (63) 359
Cash flow from investing activities
Purchase of property, plant and equipment (1,862) (913)
and development costs
Environmental tasks (65) (81)
Proceeds from the sale of fixed assets - 33
Exploration and evaluation expenditure assets (549) (966)
Net cash used in investing activities (2,476) (1,927)
Increase/ (decrease) in cash 662 (165)
Cash at the beginning of period 4,320 4,787
Cash at the end of period 4,982 4,622
Orosur Mining Inc.
Condensed Interim Consolidated Unaudited Statements of Changes in Shareholders' Equity
Thousands of United States Dollars, except where indicated
Three months ended
August 31,
2016 ($) 2015 ($)
Capital stock
Balance at beginning of period 60,751 60,544
Exercise of stock options 75 -
Grant of shares 23 -
Balance at end of period 60,849 60,544
Broker warrants
Balance at beginning of period - 62
Balance at end of period - 62
Contributed surplus
Balance at beginning of period 5,925 5,824
Stock based compensation recognized 28 7
Exercise of stock options (75) -
Balance at end of period 5,878 5,831
(Deficit) Retained earnings
Balance at beginning of period (33,497) (32,287)
Net profit/(loss) for the period 2,759 (1,726)
Balance at end of period (30,738) (34,013)
Currency translation reserve (1,021) (970)
Shareholders' equity at end of period 34,968 31,454
Orosur Mining IncIgnacio Salazar, +1 (778) 373-0100Chief
Executive Officerinfo@orosur.caorCantor Fitzgerald EuropeDavid
Porter / Craig Francis / Philip DaviesTel: +44 (0) 20 7894
7000orFTI ConsultingBen Brewerton / Oliver Winters / Sara Powell /
Emerson ClarkeTel: +44 (0) 20 3727 1000
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(END) Dow Jones Newswires
October 17, 2016 02:00 ET (06:00 GMT)
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