Anaconda Generates $6.4M in Revenue in FY Q2 2014; Pine Cove Mine Sells Nearly 3,900 Ounces of Gold
December 16 2013 - 6:00AM
Marketwired
Anaconda Generates $6.4M in Revenue in FY Q2 2014; Pine Cove Mine
Sells Nearly 3,900 Ounces of Gold
TORONTO, ONTARIO--(Marketwired - Dec 16, 2013) - Anaconda Mining
Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to
announce certain financial and operating results for the fiscal
2014 second quarter ended November 30, 2013 ("Q2"). The Company
sold 3,852 ounces of gold and generated $5,299,446 in revenue at
Pine Cove at an average sales price of $1,376 per ounce. The Q2
sales volume was 21% greater than Q2 of fiscal 2013; while the Q2
revenue was 2% less than Q2 of fiscal 2013 due to a lower gold
price. For the first six months of fiscal 2014, the Company sold
7,948 ounces of gold and generated $11,031,229 in revenue at Pine
Cove at an average sales price of $1,388 per ounce. Compared to the
first six months of fiscal 2013, sales volume increased 7% while
revenue at Pine Cove decreased by 10%, again because of a lower
sales price. The Company expects to file its full financial
statements on or before January 14, 2014.
During the second quarter, Anaconda received approximately
US$1,125,000 in cash related to milestone and royalty payments from
the sale of the Company's Chilean iron ore assets. Together with
the revenue generated at Pine Cove, the Company grossed
approximately $6.4M in cash receipts for Q2. Anaconda expects to
receive future quarterly royalty payments of between US$125,000 and
US$250,000. The Company is also scheduled to receive US$2million by
May 2015. Lastly, Anaconda can earn additional lump sum payments
based on the price at which the iron ore is sold for certain
volumes of production.
President and CEO, Dustin Angelo, stated, "The Company continues
to progress in fiscal 2014 and build upon the success that was
achieved during last year when Anaconda had its best financial and
operational results despite extremely challenging conditions.
Thanks to more consistent, higher mill throughput, we realized
greater three and six month sales volume in fiscal 2014 compared to
the same period last year. We've also been successful in our short
term hedging strategy which has yielded a higher weighted average
sales price versus the Canadian spot price during the fiscal year.
In addition, we are beginning to receive meaningful and consistent
cash from Chile. Just as importantly, we dramatically increased the
growth potential of Anaconda by entering into option agreements for
Deer Cove and Stog'er Tight, two highly prospective, advanced gold
projects on the Ming's Bight Peninsula. With a positive cash
flowing mine and 6,000 hectares of contiguous exploration property,
the Company has all of the elements to continue increasing
production and profits."
FY Q2 2014 Operations Overview:
During Q2, the Pine Cove mill operated for approximately 80 days
at an availability rate of 87%. The mill processed 76,114 dry
tonnes of ore (956 tonnes per operating day) at an average head
grade of 1.80 grams per tonne. During the month of November, the
Baie Verte Peninsula experienced a winter storm which caused power
outages at the mine site. As a result of the weather and subsequent
difficulty in restarting the ball mill, the Pine Cove mill was down
for a total of six (6) days during the month. Despite the
interruption, the Company processed almost exactly the same amount
of tonnes in Q2 as it did in the similar period in fiscal 2013
because of an 8% year-over-year increase in tonnes per operating
day. Overall mill recovery averaged 83%, as expected.
During Q2, the mine experienced dewatering issues caused by
power outages. The combination of power outages and unusually high
precipitation (wind, snow, and rain) delayed access to the newly
developed bench at the 5006 level where higher grade ore mining is
scheduled. Mining activities were therefore redirected to upper
benches to allow dewatering of the lower yet potentially higher
grade areas of the mine. All activities have returned to normal
after the first week of December.
The following table summarizes the key operating statistics for
the three and six months ended November 30, 2013 and November 30,
2012:
|
Q2 Ended 11/30/13 |
|
Q2 Ended 11/30/12 |
|
|
6 Months Ended 11/30/13 |
|
6 Months Ended 11/30/12 |
|
OPERATING STATISTICS: |
|
|
|
|
|
|
|
|
|
Operating days |
79 |
|
86 |
|
|
164 |
|
160 |
|
Availability |
87 |
% |
94 |
% |
|
90 |
% |
88 |
% |
Dry tonnes processed |
76,114 |
|
76,292 |
|
|
160,004 |
|
139,157 |
|
Tonnes per operating day |
956 |
|
887 |
|
|
976 |
|
870 |
|
Grade (grams per tonne) |
1.80 |
|
1.76 |
|
|
1.86 |
|
1.80 |
|
Overall mill recovery |
83 |
% |
83 |
% |
|
83 |
% |
84 |
% |
|
|
|
|
|
|
|
|
|
|
Gold sales volume (troy oz.) |
3,852 |
|
3,194 |
|
|
7,948 |
|
7,411 |
|
NOTE: Operating
statistics exclude changes in in-circuit inventory.
ABOUT
ANACONDA
Headquartered in Toronto, Canada, Anaconda is a growth oriented,
gold mining and exploration company with a producing asset located
on the Baie Verte Peninsula in Newfoundland, Canada called the Pine
Cove mine.
FORWARD LOOKING
STATEMENTS
This document contains or refers to forward-looking
information. Such forward-looking information includes, among other
things, statements regarding targets, estimates and/or assumptions
in respect of future production, mine development costs, unit
costs, capital costs, timing of commencement of operations and
future economic, market and other conditions, and is based on
current expectations that involve a number of business risks and
uncertainties. Factors that could cause actual results to differ
materially from any forward-looking statement include, but are not
limited to: the final approval of the private placement by the
Toronto Stock Exchange; the grade and recovery of ore which is
mined varying from estimates; capital and operating costs varying
significantly from estimates; inflation; changes in exchange rates;
fluctuations in commodity prices; delays in the development of the
any project caused by unavailability of equipment, labour or
supplies, climatic conditions or otherwise; termination or revision
of any debt financing; failure to raise additional funds required
to finance the completion of a project; and other factors.
Additionally, forward-looking statements look into the future and
provide an opinion as to the effect of certain events and trends on
the business. Forward-looking statements may include words such as
"plans," "may," "estimates," "expects," "indicates," "targeting,"
"potential" and similar expressions. These forward-looking
statements, including statements regarding Anaconda's beliefs in
the potential mineralization, are based on current expectations and
entail various risks and uncertainties. Forward-looking statements
are subject to significant risks and uncertainties and other
factors that could cause actual results to differ materially from
expected results. Readers should not place undue reliance on
forward-looking statements. These forward-looking statements are
made as of the date hereof and we assume no responsibility to
update them or revise them to reflect new events or circumstances,
except as required by law.
Anaconda Mining Inc.Dustin AngeloPresident and CEO(647)
260-1248dangelo@anacondamining.comwww.anacondamining.comProConsul
Capital Ltd.Andreas CurkovicInvestor Relations(416)
577-9927acurkovic@proconsulcapital.com
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