MONTREAL, QUEBEC--(Marketwire - Nov 15, 2012) - Malaga Inc. ("MLG") (MLG.TO)(MLGAF) reports its financial results today for the third quarter ended September 30, 2012. The management discussion and analysis and unaudited interim financial statements can be found on the Company''s website (www.malaga.ca ) and on SEDAR (www.sedar.com). All amounts are in US dollars unless otherwise indicated.
For the third quarter of 2012, sales amounted to $3.1M ($4.6M in Q3-2011). The 32% decrease is mainly caused by a 31% decrease in tungsten revenues as a result of a 19% decrease in sales volume (10,252 MTU in Q3-2012 compared to 12,697 MTU in Q3-2011)and a 19% decrease in the average APT selling price ($368/MTU in Q3-2012 compared to $454/MTU in Q3-2011. In addition, there were no copper sales during the quarter.
The Company incurred a net loss of $0.9M for the third quarter compared to a net income of $2.0M in Q3-2011. The main driver explaining the net loss was the production shortfall in Q3-2012 which resulted in lower sales volume and a 32% increase in the average cash cost of production, as well as the fact that there were no copper sales in the quarter.
Year-to-date, total sales amounted to $11.7M ($15.2M for the same period in 2011). The 23% decrease in total sales includes a 20% decrease in tungsten revenues as a result of a 26% decrease in sales volume (34,183 MTU compared to 46,394 MTU in 2011), and a 5% decrease in the average APT selling price ($396 in 2012 compared to $418 in 2011). Production was down for the nine-month period ended September 30, 2012 compared to same period last year (34,382 MTU in 2012 compared to 43,868 MTU in 2011) which resulted in a $47 increase in the average cash cost of production ($210/MTU in 2012 compared to $163/MTU in 2011).
The Company''s production shortfall resulted in reduced sales that led to an increase in the working capital deficit to $4,195,526 ($1,545,235 as at December 31, 2011), and a reduction of cash on hand to $53,364 ($530,885 as at December 31, 2011).
Key Financial Data:
|For the three-month periods ended September 30,||For the nine-month periods ended September 30,|
|Cost of sales (including depreciation and depletion)||(2,818||)||(3,058||)||(8,876||)||(9,784||)|
|Depreciation and depletion||462||562||1,463||1,837|
|Income from mining activities||319||1,586||2,825||5,446|
|General and administrative expenses||(739||)||(853||)||(2,583||)||(2,998||)|
|Net income (loss)||(883||)||1,980||(601||)||4,423|
|Adjusted net income (loss)||(883||)||632||(619||)||1,907|
|Earnings (loss) per share basic and diluted||($0.00||)||$0.01||($0.00||)||$0.02|
|Cash cost of production per MTU||$234||$178||$210||$163|
|Production in MTU||9,826||13,302||34,382||43,868|
The Company announces the resignation of Dino Fuoco from the Board of Directors as he has accepted a new full time position. To replace Mr. Fuoco, Benoit Alain was appointed to the Board of Directors and will also be a member of the Audit Committee. Mr. Alain has 25 years of international experience in management, business development and finance in the resources and manufacturing industries. Most recently Mr. Alain spent nine years with the ArcelorMittal group, the world leader in steel production, in various senior roles within the finance and marketing function. Mr. Alain has been a member of the Chartered Institute of Canadian Accountants since 1989.
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Corporation''s ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation''s Annual Information Form for the year ended December 31, 2011 and dated March 27, 2012. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of tungsten, that the Pasto Bueno property is a technical viable and economic operation and that the Corporation can access financing. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. The information provided reflects management''s current expectations regarding future events and performance as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.