Mercator Minerals Limited announced its results for the 3 and 9 month periods ended September 30th 2010. Net income for the 3 month period ended September 30th 2010 of USD 10.68 million compares to a net loss of USD 0.69 million for the corresponding period in 2009. Adjusted net income, excluding non cash items for the Q3 was USD 14.78 million.
Financial highlights for the 3 months ended September 30th 2010
1. Revenues from copper, molybdenum and silver sales for the 3 month period ended September 30th 2010 of USD 56.77 million compared to USD 26.21 million for the corresponding period in 2009 an increase of approximately 217%;
2. Earnings before interest, taxes, depreciation and amortization for the 3 month period ended September 30th 2010 was USD 17.68 million compared to USD 6.83 million in the same period in 2009;
3. Operating cash flow at wholly owned subsidiary, Mineral Park Inc of USD 24.03 million compared to USD 2.47 million in the same period in 2009;
4. Consolidated net earnings for the 3 month period ended September 30th 2010 was USD 10.68 million compared to a net loss of USD 0.69 million for the corresponding period in 2009;
5. Estimated cash operating cost for Q3 2010 production of USD 2.12 for copper and USD 10.65 for molybdenum on a co product basis;
During the period, the Company generated consolidated revenues of USD 56.77 million an increase of approximately 217% over revenues in the Q3 of 2009 primarily as a result of higher copper and molybdenum sales and sales prices. Production during quarter ended September 30th 2010 totalled 9,032,269 pounds of copper comprised of 8,167,634 pounds of copper in concentrates and 864,635 pounds of copper as cathodes plus 1,234,987 pounds of molybdenum and 135,136 ounces of silver.
Mill throughput during the Q3 totaled 2.52 million tonnes or 27,466 tonnes per day with average head grades of 0.223% copper, 0.040% molybdenum and 0.0934 oz per tonne silver. Mill recoveries averaged 72.9% for copper, 61.7% for molybdenum and 57.4% for silver during the period a marked improvement over the second quarter.
Subsequent to the end of the period, the Company commenced the commissioning of the rougher cell expansion at Mineral Park, achieving improved recoveries during the initial startup of the new circuit. After a month of operation, copper recoveries averaged 78.9% and molybdenum recoveries averaged 72.1%. October was a short month due to 4 down days to tie in the new rougher circuit. However, molybdenum production was a record 493,592 pounds. Copper production was 2.67 million pounds and silver 44,386 ounces during the month.
Mr Mike Surratt president and CEO of Mercator Minerals said that "The Q3 marked continued improvements for Mineral Park and Mercator, with a second consecutive quarterly net profit, a year to date profit and improved operations at Mineral Park. On a year to date basis, the Company is in a profitable position, reporting net earnings of USD 1.99 million after non cash items and a one time charge of USD 6.0 million as an extraordinary item for the premium paid on the early redemption of the notes issued by the Company in 2007. Excluding non cash items and a one time charge of USD 6.0 million as an extraordinary item for the premium paid on the early redemption of the notes issued by the Company in 2007, the Company recorded adjusted net earnings of USD 27.55 million for the 9 months ended September 30th 2010."
