Mercator Minerals Limited announced revenues for Q3 2011 of USD 64.0 million an increase of USD 13.2 million or 26% over the Q3 2010. Cash flow from operations was USD 23.2 million in the Q3 2011 an increase of USD 9.0 million or 63% over the same quarter a year ago. Net income for the Q3 2011 which includes unrealized gains from derivative instruments was USD 106.8 million or USD 0.43 per share on a basic basis.
Q3 highlights and significant items;
1. During the quarter, the Company completed construction of the Phase 2 mill expansion at its Mineral Park mine and despite the production interruptions associated with construction, Mineral Park had another strong quarter of copper and molybdenum production. Copper production totaled 10.5 million pounds and 2.0 million pounds of molybdenum in concentrates.
2. The Company also achieved improved copper and molybdenum recoveries and increased mill throughput. Recoveries were 77.2% for copper and 76.6% for molybdenum while mill throughput averaged a record of 36,151 tonnes per day for the period. Subsequent to the end of the Q3 of 2011, as the Phase 2 expansion was ramping up, mill throughput for the month of October averaged over 47,000 tonne per day.
3. Net income was USD 106.8 million or USD 0.43 per share for the quarter as compared to a net loss of USD 70.7 million or a loss of USD 0.36 per share for the comparable quarter of 2010. Adjusted net income was a loss of USD 3.0 million as compared to adjusted net income of USD 7.4 million for the same quarter of 2010.
4. Revenues were USD 64.0 million for the quarter an increase of USD 13.2 million or 26% over the comparable quarter of 2010.
5. Total cash costs in the quarter were USD 2.49 per pound for copper in concentrate and USD 10.99 per pound for molybdenum in concentrate or 11% higher and 8% lower, respectively than the Q2 of 2011.
6. Earnings from operations were USD 6.3 million representing USD 3.8 million decrease or 38% decrease, over the comparable quarter of 2010.
7. Cash flows from operating activities were USD 23.2 million or USD 0.09 per share for the quarter compared to USD 14.2 million or USD 0.07 per for the comparable quarter of 2010, or a 63% increase over the comparable period in 2010.
8. Capital expenditures of USD 19.3 million for the quarter included USD 11.8 million for the Phase 2 mill expansion and USD 6.6 million for the natural gas turbine installation at Mineral Park. The turbine was placed into service on August 15th 2011. Phase 2 mill expansion construction was completed during the Q3 of 2011 with throughput approaching the design rate of 50,000 tonne per day at the end of the Q3 of 2011.
Mr Bruce McLeod president and CEO Mercator Minerals said that "The Q3 of 2011 was a watershed period of transition for Mercator. The focus of this quarter was ensuring the successful completion of Phase 2 which has increased production levels and will lower unit costs. After 4 years of construction at Mineral Park, we look forward to taking advantage of our newly expanded operation and focus on improving operating efficiencies that should increase through-put rates to greater than 50,000 tons per day increase recoveries and lower the mine unit operating costs."
