TORONTO,
Nov. 29, 2013 /CNW/ - Mangazeya
Mining Ltd. ("Mangazeya" or the "Company") (NEX:
MGZ.H) announced the filing of its interim financial statements
("Financial Statements") and management's discussion and
analysis ("MD&A") for the three month period ended
September 30, 2013. All figures are
quoted in Canadian dollars unless otherwise indicated.
Commenting on the interim financial results,
Sergey Yanchukov, CEO of Mangazeya, said, "The Company is satisfied
with the operating results for the third quarter of fiscal
2013. The completion of the novation of the US$150 million senior secured loan facility
("Loan Facility") from VTB Capital plc to Unique Goals
International Inc. is expected to provide the Company with more
stability over the medium term.
Highlights for Q3 2013 include:
- Net loss for the period from continuing operations after tax
and finance costs of $2.9 million
compared to a net income from continuing operations after tax and
finance of $2.0 million for the
corresponding period in the previous year;
- Revenue of $10.6 million for the
third quarter of fiscal 2013 compared to revenue of $14.5 million in the third quarter of the
previous year;
- Gross profit for the three month period of $1.7 million compared to a gross profit of
$8.1 million for the corresponding
period in the previous year;
- Gold poured of 7,128 ounces compared to 8,692 ounces for the
third quarter last year; and
- Cash cost per ounce sold for the third quarter of $977 compared to $686 for the third quarter last year.
Financial Results for the Quarter ended September 30, 2013
The Company reported an operating loss from
continuing operations of $687,000 for
the three months ended September 30,
2013 compared with an operating income from continuing
operations of $4,911,000 for the
three months ended September 30,
2012. Gross profit from continuing operations for the three
months ended September 30, 2013
decreased to $1,722,000 from
$8,098,000 for the three months ended
September 30, 2012.
Administrative costs for the three months ended September 30, 2013 decreased to $1,629,000 from $2,277,000 for the corresponding period ended
September 30, 2012. Net loss
from continuing operations after tax and finance costs was
$2,883,000 for the three month period
ended September 30, 2013, while the
Company's net income from continuing operations after tax and
finance costs for the three month period ended September 30, 2012 was $2,019,000.
The occurrence of a net loss after tax and
finance costs from continuing operations for the three months ended
September 30, 2013 compared with net
income in the corresponding period of 2012, resulted from reduced
revenue, higher costs of sales per ounce and a lower gross
profit.
For the three and nine months ended September 30, 2013, the Company reported a net
loss from discontinued operations of nil. The losses from
discontinued operations in the comparable periods of 2012 were nil
and $171,763,000, respectively,
resulting from the deconsolidation of Century.
The Financial Statements and MD&A are
available on Mangazeya's temporary website at
www.whitetigergold.com and have been filed on SEDAR at
www.sedar.com.
About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and
exploration company, focused on the development of mineral
resources in the Russian
Federation.
Caution Concerning Forward-Looking Information
This news release contains forward looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward-looking
information within the meaning of applicable Canadian securities
laws (collectively, "forward-looking statements") relating, but not
limited to, the Company's expectations, intentions and beliefs
(including, without limitation, statements regarding, the Bridge
Loan (including the timing of advances thereunder and the terms
thereof), the Company's financial position, financial alternatives
and the Company's ability to continue operations and the Loan
Facility (including the occurrence of an event of default
thereunder and its potential effect on the Company)). Words such as
"may", "will", "should", "anticipate", "plan", "expect", "believe",
"estimate" and similar terminology are used to identify
forward-looking statements. Such statements are based on
assumptions, estimates, opinions and analysis made by the
management of the Company in light of their experience, current
conditions and their expectations of future developments as well as
other factors which they believe to be reasonable and relevant.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from those expressed or implied in the
forward-looking statements. Risks and uncertainties that may cause
actual results to vary include but are not limited to: the
Company's ability to obtain additional financing on acceptable
terms or at all; the Company's ability to demonstrate compliance
with NEX listing requirements; changes in equity and debt markets;
inflation; uncertainties relating to the availability and costs of
financing needed to complete exploration, development and
production activities; failure to establish estimated mineral
resources or mineral reserves (the Company's mineral resource and
mineral reserve figures are estimates and no assurances can be
given that the indicated levels of gold will be produced);
exploration costs varying significantly from estimates; delays in
the exploration and development of, and/or commercial production
from, the properties in which the Company has an interest;
unexpected geological or hydrological conditions; the speculative
nature of mineral exploration and development, including the
uncertainty of reserve and resource estimates; operational and
technical difficulties, including the failure of major mining
and/or milling equipment; the ability of the Company to service its
existing debt facilities; fluctuations in gold and other commodity
prices; the existence of undetected or unregistered interests or
claims, whether in contract or in tort, over the property of the
Company; success of future exploration and development initiatives;
competition; operating performance of facilities;
environmental and safety risks, including increased regulatory
burdens, seismic activity, weather and other natural phenomena;
inability to, or delays in, obtaining necessary permits and
approvals from government authorities; risks relating to labour;
and other exploration, development and operating risks; changes to
and compliance with applicable laws and regulations, including
environmental laws; political, economic and other risks arising
from the Company's activities in Russia; fluctuations in foreign exchange
rates; and those risks set out in the Company's public documents
filed on SEDAR. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all.
Any forward-looking statement speaks only as
of the date on which it is made and, except as may be required by
applicable laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the
inherent uncertainty therein.
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 Mangazeya Mining Ltd.