For the three months ended September 30, 2009
|
Earnings per share |
$0.021 |
|
Operating cash flow |
$11.4 mm |
|
Net income |
$9.9 mm |
|
Copper equivalent produced |
8.2 mm pounds |
|
Production cash cost |
US$0.55/lb |
|
Percentage of gross revenue |
18% |
TVI Resource Development Philippines, Inc.’s Canadian affiliate, TVI Pacific Inc. (“TVI” or “the Company”), today announced unaudited, consolidated financial and operational results for the three and nine months ended September 30, 2009. This press release should be read in conjunction with the third quarter financial statements and associated management’s discussion and analysis filed with certain securities regulators in Canada on November 12, 2009 and also available on our web site ( www.tvipacific.com ) and SEDAR (www.sedar.com).
Key Financial Achievements Quarter Over Quarter
-
126% increase in Net Revenue
-
83% increase in Operating Cash Flow
-
Earnings Per Share increase from $0.001 to $0.021
| (in thousands of CDN dollars except per share information) |
3 Mo Ended 30-Sep-09
|
3 Mo Ended 30-Jun-09
|
% change Quarter over Quarter
|
|
9 Mo Ended 30-Sep-09
|
| Net revenue |
25,707
|
11,376
|
126%
|
|
44,148
|
| Operating cash flow |
11,397
|
6,229
|
83%
|
|
10,868
|
| Free cash flow (1) |
11,617
|
2,873
|
304%
|
|
11,056
|
| Net income (loss) |
9,917
|
676
|
1,367%
|
|
8,579
|
| EPS (basic) |
0.021
|
0.001
|
2,000%
|
|
0.019
|
| Free cash flow per share (1) |
0.024
|
0.006
|
300%
|
|
0.023
|
| (1) See financial statements for the reconciliation from operating cash flow to free cash flow. | |||||
Key Production Achievements Quarter Over Quarter
- 38% increase in copper production
- 5% decrease in production cash costs
- 27% increase in average copper price received
|
|
3 Mo Ended 30-Sep-09
|
3 Mo Ended 30-Jun-09
|
% change Quarter over Quarter
|
|
9 Mo Ended 30-Sep-09
|
| Copper pound equivalent produced (m lbs) (1) |
8,205
|
6,156
|
33%
|
|
18,720
|
| Copper produced (m lbs) |
6,701
|
4,862
|
38%
|
|
14,581
|
| Gold produced (oz) |
2,162
|
1,502
|
44%
|
|
4,530
|
| Silver produced (oz) |
121,034
|
110,298
|
10%
|
|
350,510
|
| Production c ash cost (US$/CU lb eq) |
0.55
|
0.58
|
(5%)
|
|
0.61
|
| Average copper price received (US$/lb) |
2.67
|
2.11
|
27%
|
|
2.36
|
(1) See MD&A for assumptions used in the calculation of the copper pound equivalent.
“As previously reported, a number of factors have contributed to our financial and operational success over the past three quarters” said Cliff James, TVI’s President and CEO. “Through steady process improvements at Canatuan, the team has been able to decrease average production cash costs demonstrating that we continue to deliver on our operational targets. This, combined with strong copper prices, has resulted in a considerable improvement to our cash position. This has allowed us to start construction on the Zinc Circuit well ahead of schedule and accelerate exploration and development activities at Canatuan and Balabag, and exploration projects at Tamarok.”
The following table details key operating statistics for the Canatuan Sulphide Mine for the three and nine months ending September 30, 2009.
| Operations |
3 Months ended Sep 30/09
|
9 Months ended Sep 30/09
|
| Total tonnes of ore processed (t) |
158,040
|
352,314
|
| Average tonnes of ore processed per day (t) |
1,718
|
1,291
|
| Ore copper grade (%) |
2.13
|
2.31
|
| Copper recovery (%) |
90.19
|
81.43
|
| Concentrates produced (dry weight – t) |
16,427
|
35,116
|
| Average daily concentrate production (dry weight – t) |
179
|
129
|
| Copper lb eq produced (lbs) |
8,205,118
|
18,719,511
|
| Concentrate copper grade (%) |
18.50
|
18.83
|
| Concentrate gold grade (g/t) |
4.09
|
4.01
|
| Concentrate silver grade (g/t) |
229.17
|
310.46
|
As previously disclosed, construction has begun on an additional flotation circuit to process zinc ore. The Zinc Circuit, expected to be fully operational by late April 2010, will monetize the zinc component of the deposit for an added revenue stream. As expected, mining has progressed into the copper-zinc portion of the ore body. Off-take arrangements for the zinc concentrate are currently being negotiated.
As reported on October 29, 2009, TVI completed its eighth consecutive shipment of copper concentrates. The concentrates were shipped from the TVIRD warehouse facility, at Santa Maria Port in Siocon, Zamboanga del Norte, in accordance with the offtake arrangement previously entered into between TVIRD and MRI Trading AG (“MRI”).
PROJECTS UPDATE
Near-term Development
Canatuan Near-Mine Tenements
Exploration to date has identified several mineral occurrences on the surrounding tenements, including the Tabingan, Matigdao, and Palalian prospects, which TVI believes are compelling exploration prospects. TVIRD plans to advance exploration soon.
Through exploration, TVIRD hopes to find new commercial mineral deposits in the vicinity to further increase the mineral resource and extend the life of the Canatuan Mine by providing new feedstock for the existing facilities. TVIRD is focusing exploration efforts on previously-discovered mineralized zones within a fifteen kilometre radius of the main deposit, surrounding and along strike of the mine. These present immediate growth opportunities which will help extend the current mine life.
Balabag
The Balabag gold project is a high priority for TVI. Based on preliminary exploration results, TVI believes that the Balabag property has the potential to become a second production centre for the Company. TVI has begun to evaluate development scenarios designed to bring the Balabag project into production, with advance development work scheduled to commence later this year.
One option under consideration involves the establishment of a “bootstrap” mining operation at Balabag. This alternative involves the construction of a small pilot plant, with limited capital expenditures and relatively low initial throughput that can be ramped up over time into a full scale mining operation using the cash flows generated from operations. The option to construct a Balabag plant in stages would allow the Company to advance activities with minimum initial capital and to begin production at an earlier date.
High-Impact Exploration
Tamarok and Tapisa
In North Zamboanga, TVIRD’s applications cover almost all the targets identified by a prior exploration program, conducted by a major international company, numbering at least 20 epithermal gold, massive sulphide and porphyry copper-gold prospects. The Tamarok copper-gold project and the Tapisa exploration project are located 60 kilometres north-northeast of TVIRD’s Balabag project. Reconnaissance work carried out to date supports historical findings and has discovered new prospects. Notably, a great deal of the mineralization in these areas occurs right on the surface and has been easily accessible to the Company’s exploration teams.
The Company has completed all requirements necessary to have the Mineral Production Sharing Agreement (“MPSA”) signed by the Secretary of the Department of Energy and Natural Resources of the Republic of the Philippines. Following the signing of the MPSA, TVIRD plans to conduct geophysical surveys, carry out systematic detailed geological investigations, further delineate drill targets on surface, and schedule a diamond drilling program.
TVI is also considering strategic alliances or joint ventures with other mining companies to benefit from economies of scale. There can be no assurance that any of the current discussions will result in further investments in the Company or that the consideration of strategic alliances and joint ventures will lead to the establishment of relationships with third-party mining organizations.
About TVI Pacific Inc. (TSX: TVI)
TVI Pacific Inc. is a publically traded, profitable, low cost copper producer focused on the production, development, exploration and acquisition of precious and base metal mining deposits in the Philippines. The Company’s interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.), Inc.
Further Information: Investor Relations – 403-265-4356 or tvi-info@tvipacific.com
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.