Tuesday, March 29, 2016

Lundin Mining Corporation - LUN.t

Lundin Mining Corporation - LUN.t is a diversified base metals mining company with operations and projects in Portugal, Sweden, Spain and the U.S.A producing copper, zinc, lead and nickel.

Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the DRC.



On March 3, 2016 the company reported NEWS

Lundin Mining Corporation (TSX:LUN) (OMX:LUMI) ("Lundin Mining", "Lundin" or the "Company") is pleased to announce that it has entered into a purchase agreement with an affiliate of Freeport-McMoRan Inc. ("Freeport") to purchase an interest in Freeport's stake in the Timok project located in Serbia. The high grade copper-gold Cukaru Peki deposit is situated on one of the four mineral licenses comprising the Timok project. The project partners are currently Freeport, who is operator of the project, and an affiliate of Reservoir Minerals Inc. ("Reservoir") which holds a minority stake in the project and has certain transfer rights as a result of the proposed transaction.Total consideration of up to US$262,500,000 is payable in stages upon the achievement of key development milestones defined under the purchase agreement, as more particularly described below.
The transaction is subject to Reservoir's right of first offer ("ROFO"), as well as other customary closing conditions. Prior to entry into the purchase agreement, a ROFO notice was provided today by Freeport to Reservoir, and is open for acceptance by Reservoir for 60 days from the receipt of notice. If the ROFO is not exercised by Reservoir, the transaction is expected to close in the second quarter of 2016.
Mr. Paul Conibear, President and CEO commented, "The acquisition of an interest in the Timok project is consistent with our growth criteria that we have rigorously followed over the last few years. This high quality copper/gold project fits ideally within our overall asset base of operations in the Americas and Europe. This transaction enables the existing Freeport/Reservoir partnership to leverage our proven underground base metals development, construction and operating skill sets to advance the Timok project into operation in a timely manner. The Timok project is expected to enhance the Company's long term copper growth pipeline, while preserving our strong balance sheet. We are very pleased to be able to extend our partnership with Freeport and we intend to advance a meaningful and cooperative relationship with Reservoir to the benefit of all stakeholders including those in Serbia."
Transaction Terms
Under the purchase agreement, and subject to Reservoir's ROFO, Lundin will acquire (1) 100% of Freeport's interest in the upper zone of the Cukaru Peki deposit which is characterized by high grade massive and semi-massive sulphide mineralization (the "Upper Zone"), as well as Freeport's interest in all the mineral licenses comprising the Timok project, and (2) 28% of Freeport's interest in the lower zone of the Cukaru Peki deposit which is characterized by porphyry-style mineralization (the "Lower Zone"). Freeport will retain the remaining interest in the Lower Zone. In addition, Freeport has the option to have any new large mineral deposit containing at least four million tonnes of contained copper equivalent characterized in the same manner as the Lower Zone upon the payment to Lundin of two times drilling, study and other similar costs plus other direct costs such as land acquisition costs.
As part of the transaction, Lundin will be appointed as operator of the Timok project until the occurrence of certain events and Lundin will advance the development of both the Upper Zone and the Lower Zone in accordance with approved budgets and work programs. Lundin will have the sole right to propose budgets and work programs relating to the Upper Zone and for certain agreed Lower Zone work, and Freeport will have the sole right to propose budgets and work programs relating to the Lower Zone, subject to specified exceptions.
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http://canadastockjournal.blogspot.com/2016/03/lundin-mining-corporation-lunt.html

Friday, March 25, 2016

Alacer Gold Corp. - ASR.t

Alacer Gold Corp. - ASR.t flagship is the 80%-owned Çöpler Gold Mine in Turkey which commenced commercial gold production in April 2011.

The company produced 204,665 ounces Au at AISC of $690 per ounce in 2015.




On February 8, 2016 the company released Update

"
Alacer Gold Corp. (“Alacer” or the “Corporation”) [TSX: ASR and ASX: AQG] announced today that it has filed its operating and financial results and related management’s discussion and analysis (“MD&A”) for the full-year ended December 31, 2015. The corresponding financial statements and MD&A are available on www.AlacerGold.com and on www.SEDAR.com. All currencies referenced herein are denominated in USD unless otherwise stated.
Rod Antal, Alacer’s President and Chief Executive Officer, stated, “In 2015 the Corporation delivered both operating and cost targets. The Çöpler Gold Mine met full-year production guidance, producing 204,665 ounces of gold at Total Cash Costs1 of $482 an ounce and All-in Sustaining Costs1 of $690 per ounce. In 2016, we anticipate another strong year, as Çöpler will produce between 150,000 – 170,000 ounces of gold at Total Cash Costs1 of $575 to $625 an ounce. Alacer remains focused on its exploration efforts in the Çöpler District and based on the recent drill results, we are optimistic that we will be able to extend the oxide production at Çöpler.
The Corporation also continues to advance detailed engineering for the Sulfide Project while we await approval of the land-use permits.”
Highlights Strategic
 An updated NI 43-101 Technical Report was issued on March 30, 2015, increasing Çöpler’s reserves and increasing Life-of-Mine gold production by over 800,000 ounces.
 On December 9, 2015, the Corporation released the results of its exploration drilling program from several areas within the Çöpler District indicating favorable metallurgy and rapid development potential.
 The Corporation signed a $250 million, 7-year term senior secured project finance facility on September 21, 2015, for the expansion of the Çöpler Gold Mine, with no mandatory hedging and interest rates of LIBOR plus 2.5% to 2.95%.
 In early Q2 2015, Turkish authorities approved a third incentive certificate that will generate significant cash tax credits from eligible expenditures on the Sulfide Project and Heap Leach Pad Phase 4 (“HLP4”) expansion.
 On April 9, 2015, the Corporation announced the Board of Directors approved advancement of the Çöpler Sulfide Project into detailed engineering and procurement of long-lead time items, which has continued to progress throughout the year; initial earthworks commenced during Q3 2015.
 A Letter of Intent was signed on July 17, 2015, with Air Liquide to commence the detailed engineering work for the Sulfide Project Oxygen Plant which will form the basis for a construction and long-term gas supply and operating contract.
 On January 14, 2016, the Corporation announced it will move forward with a twin horizontal autoclave approach, on an Engineering, Procurement and Construction Management (“EPCM”) basis, to achieve optimal risk-adjusted results for the Sulfide Project.
 On February 11, 2015, the Corporation announced the suspension of its dividend policy due to capital expenditure commitments, including the Sulfide Project.
Operational
 On August 19, 2015, the Çöpler Gold Mine produced its one millionth ounce of gold.
 On December 31, 2015, the Çöpler Gold Mine achieved 1,041 days, or over 7.9 million man-hours without a lost-time injury (“LTI”). On January 11, 2016, a drilling contractor injured a hand resulting in an LTI.
 Gold production was 204,665 ounces and attributable gold production2 was 163,732 ounces.
 Total Cash Costs1 per ounce (C2) were $482 and All-in Sustaining Costs1 per ounce were $690.
 Expansion of HLP4 continues to advance; initial stacking of ore on the expansion area occurred in June 2015.
 Sulfide stockpiles at year end 2015 to 5.1 million tonnes at an average grade of 3.67 g/t gold or approximately 600,000 contained gold ounces.
Financial
 The Corporation ended 2015 with cash of $360.7 million.
 An undrawn finance facility of $250 million is in place.
 Working capital increased to $403.9 million at year end.
 Cash flow from operating activities totaled $107.9 million.
 Attributable net profit2 was $46.6 million or $0.16 per share.
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http://canadastockjournal.blogspot.com/2016/03/alacer-gold-corp-asrt.html

Wednesday, March 23, 2016

Pan American Silver Corp. - PAA.t

Pan American Silver Corp. - PAA.t is the second largest primary silver mining company in the world, with eight operating silver mines in Peru, Mexico, Argentina and Bolivia.

The Company produced 26.1 million ounces of silver and 161,500 ounces of gold in 2015 at AISC of $14.92 Oz Ag.




On May 11, 2016 the company released numbers

"Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) ("Pan American", or the "Company") today reported unaudited results for the three months ended March 31, 2016.
Strategic Achievements First Quarter ("Q1") 2016 vs Q1 2015
Operating and Financial
  • Increased silver production 6% to 6.42 million ounces
  • Increased gold production 10% to 41,200 ounces
  • Reduced consolidated cash costs(1) 31% to $8.03 per payable ounce of silver, net of by-product credits
  • Reduced consolidated All-In Sustaining Costs per Silver Ounce Sold(2) ("AISCSOS") 8% to $13.12, net of by-product credits
  • Generated $1.9 million in net earnings, compared to a loss of $19.8 million
  • Adjusted earnings(3) were $3.5 million ($0.02 per share), compared to an adjusted loss(3) of $19.9 million ($0.13 per share)  
  • Increased operating cash flows before working capital changes to $28.4 million, or $0.19 per share, from $7.4 million, or $0.05 per share
Project Development
  • La Colorada expansion – project remains on budget and on schedule for the planned  production increase to 1,800 tonnes per day by the end of 2017
  • Dolores expansion – project remains on budget and on schedule for the pulp agglomeration plant and underground operations to reach full design capacity by the end of 2017

(1)
Cash cost per payable ounce of silver, net of by-product credits ("cash costs") is not a generally accepted accounting principle (a "non-GAAP") measure. Cash costs does not have a standardized meaning prescribed by IFRS as an indicator of performance. The Company's method of calculating cash costs may differ from the methods used by other entities and, accordingly, the Company's cash costs may not be comparable to similarly titled measures used by other entities. Investors are cautioned that cash costs should not be construed as an alternative to production costs, depreciation and amortization, and royalties determined in accordance with IFRS as an indicator of performance. Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Company's management's discussion and analysis for the three months ended March 31, 2016 (the "Q1 2016 MD&A") for a more detailed discussion of this measure and its calculation.
(2)
All-In Sustaining Costs per Silver Ounce Sold ("AISCSOS") is a non-GAAP measure. The Company has adopted AISCSOS as a measure of its consolidated operating performance and its ability to generate cash from all operations collectively, and the Company believes it is a more comprehensive measure of the cost of operating our consolidated business than traditional cash costs per payable ounce as it includes the cost of replacing ounces through exploration, the cost of ongoing capital investments (sustaining capital), general and administrative expenses, as well as other items that affect the Company's consolidated earnings and cash flow. AISCSOS does not have a standardized meaning prescribed by GAAP, and readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Q1 2016 MD&A for a more detailed discussion of this measure and its calculation.
(3)
Adjusted earnings (loss), and adjusted earnings (loss) per share, are non-GAAP measure that the Company considers to better reflect normalized earnings as it eliminates items that may be volatile from period to period relating to positions that will settle in future periods, and items that are non-recurring. Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Q1 2016 MD&A for a more detailed discussion of these measures and their calculation.

Michael Steinmann, President and Chief Executive Officer of the Company commented on the first quarter 2016 results, "We are off to a very good start in 2016, delivering robust production and a respectable financial performance. We produced more silver, gold and base metals as compared to the same quarter of last year, significantly reduced our costs, generated adjusted earnings of $0.02 per share and cash flow from operations of $28.4 million (before changes in working capital). These results were achieved in spite of lower prices on our silver and gold sales than in Q1 2015, which trimmed our revenue by nearly $20 million." Steinmann continued, "Our two expansion projects at La Colorada and Dolores are advancing on schedule and on budget, funded completely by our strong balance sheet, as we progress steadily towards becoming an even lower cost producer".
Consolidated Financial Results

Three months ended
March 31,
(Unaudited in thousands of U.S. Dollars,
except per share and per ounce figures)

2016

2015
Revenue
$
158,275
$
178,125
Mine operating earnings
$
16,698
$
2,630
Net earnings (loss) for the period
$
1,875
$
(19,785)
Adjusted earnings (loss) for the period(1)
$
3,455
$
(19,907)
Operating cash flow excluding changes in
non-cash working capital
$
28,371
$
7,424
All-in sustaining cost per silver ounce sold(2)
$
13.12
$
14.24
Net earnings (loss) per share attributable to
common shareholders (basic)
$
0.01
$
(0.13)
Adjusted earnings (loss) per share
attributable to common shareholders (basic)
$
0.02
$
(0.13)
Operating cash flow excluding changes in
non-cash working capital per share
$
0.19
$
0.05


(1)      
Adjusted earnings (loss), and adjusted earnings (loss) per share, are non-GAAP measures that the Company considers to better reflect normalized earnings as it eliminates items that may be volatile from period to period relating to positions that will settle in future periods, and items that are non-recurring. Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Q1 2016 MD&A for a more detailed discussion of these measures and their calculation.
(2)      
AISCSOS is a non-GAAP measure and does not have a standardized meaning prescribed by GAAP. Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Q1 2016 MD&A for a more detailed discussion of this measure and its calculation.


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