Aurcana Corporation (TSX VENTURE:AUN) has announced its financial and operating results for the three months ended September 30, 2010.
The following summary of selected financial information should be read in conjunction with the unaudited consolidated Financial Statements for the nine months ended September 30, 2010 and the related Management Discussion and Analysis dated November 29, 2010. All figures are in Canadian dollars unless otherwise stated.
Third Quarter Highlights:
- 72% increase in production to 125,050 tonnes in Q3, 2010 from 72,716 tonnes in Q3, 2009;
- 43% increase in net revenues to $7,476,157 in Q3, 2010 from $5,228,565 in Q3, 2009;
- 47% increase in ounces of silver sold to 238,722 in Q3, 2010 from 162,086 in Q3, 2009;
- 72% increase in earnings from mining operations to $3,007,888 in Q3, 2010 from $1,750,338 in Q3, 2009;
- 68% increase in copper concentrate sold to 3,658 tonnes in Q3, 2010 from 2,183 tonnes in Q3, 2009;
- 123% increase in zinc concentrate sold to 2,065 tonnes in Q3, 2010 from 925 tonnes in Q3, 2009;
FINANCIAL AND OPERATING DATA
For the quarter ended September 30, 2010, the Company posted net revenues of $7,476,157 (2009: $5,228,565), earnings from mining operations of $3,007,888 (2009: $1,750,338) and consolidated net earnings of $1,508,131 (2009: $2,625,481).
Included in net earnings was the effect of an unrealized foreign exchange gain of $1,030,350 (2009: $1,930,564) resulting from the weakening of the US dollar against the Canadian dollar during the quarter.
Another significant item of the Q3, 2010 results was a loss from trading activity of $1,045,470 (Q2, 2009: $Nil), the amount of which pertains to the contract the Company has with Silver Wheaton (Caymans) Ltd. ("Silver Wheaton") whereby the Company is contracted to sell to Silver Wheaton the equivalent of 50% of the silver metal produced from ore extracted during the mine-life at La Negra at a price of $3.90 per ounce.
LA NEGRA MINE - PRODUCTION AND SALES
Mining operations and exploration drilling at La Negra continue to delineate additional mineralized zones, either between or as extensions of existing ore zones which add to the mine life of La Negra. La Negra drill crews have completed 10,000 metres of diamond drilling year-to-date.
During the quarter ended September 30, 2010, 44% of the tonnes milled were mined from outside the existing reserve and historic resource base (55,000 of the 125,050 tonnes milled). Exploration drilling and underground development during the third quarter resulted in the definition of 157,000 tonnes in two zones (Bicentenario, Nuestra Senora), with excellent silver and copper grades. A total of 5,800 tonnes were mined from these zones in the quarter.
With the installation of additional mill equipment, the ramp-up of the mill expansion to 1,500 TPD was achieved, resulting in a 50% increase in throughput and an increase in concentrate production under a rising price scenario. Mine operational efficiency is under constant review to identify cost cutting opportunities. A new tailings disposal area has been defined and initial studies are in progress to fulfill requirements for permitting in order to facilitate the long term operation of the La Negra mine.
Source: Aurcana Corporation