Louvem Mines Inc. (TSX VENTURE:LOV), announces its financial results for the
third quarter, which ended September 30, 2008. Financial results are based on
Canadian GAAP and dollars are reported in Canadian currency, unless otherwise
noted.
Revenues were $3,791,438 for the third quarter of 2008, compared with $1,407,223
during the same period in 2007. In all 4,001 ounces of gold were sold at an
average price of US$922 (CAN$939) in the third quarter of 2008, compared with
1,880 ounces of gold sold at an average price of US$677 (CAN$728) for the same
period in 2007. The increase in revenues is mainly attributable to the increase
in quantity of ounces sold as well as the increase in the average price per
ounce of gold sold.
The Company posted net earnings of $878,640, or $0.03 per share for the third
quarter of 2008, compared with a net loss of $227,729, or $0.01 per share for
the same period in the previous year. Cash flow from operations was $1,529,203
for the third quarter of 2008, as for the same period in the prior year $247,226
had been used.
Total expenses for the third quarter of 2008 were $2,463,743, compared with
$1,580,103 incurred in the same period in 2007. Operating costs for the third
quarter of 2008 were $1,838,833, an increase of $761,654 compared with
$1,077,179 in the same period in 2007 because of higher production during this
quarter when compared to the third quarter of 2007, where the lower costs
reflect the five-week shut-down of the Beaufor Mine for headframe replacement.
Third quarter 2008 expenses for exploration were $284,543 compared with $121,329
in the same period the prior year due in part to the costs associated to the on
going exploration program being done at the Beaufor Mine which reflects the
Company's efforts to grow its reserves. Depreciation and depletion decreased
from $212,488 in 2007 to $164,032 in 2008, reflecting a lower depreciation and
depletion rate per ounce which is calculated based on the proven and probable
reserves which were higher at the Beaufor Mine as at December 31, 2007 when
compared with December 31, 2006.
Beaufor Mine
During the quarter ending September 30, 2008, 25,572 tonnes of ore from the
Beaufor Mine were processed at an average recovered grade of 9.73 g/t, and 8,002
ounces of gold were sold at an average price of US$922 (CAN$939) per ounce,
Louvem's share was 4,001 ounces. In the same quarter the prior year, 13,934
tonnes of ore were processed at an average recovered grade of 8.40 g/t, and
3,761 ounces of gold were sold at an average price of US$677 (CAN$728) per
ounce, Louvem's share was 1,880 ounces.
The cash cost per ounce was US$452 (CAN$460) during the current quarter compared
with US$533 (CAN$573) in the same quarter last year, when the mine was shut down
for a portion of the quarter, and is in line with the Company's forecasted
production cash cost of US$450 to US$500 per ounce.
Exploration Efforts: As reported by the Company on October 1st, 2008, the
Beaufor Mine is conducting exploration drilling to identify opportunities to
extend the mine below current mining operations, at a maximum depth of 630
metres. In the third quarter, 6,912 metres were added to the 9,871 metres of the
first semester for a total of 16,783 metres drilled in 2008 in this area. The
objective is to complete 22,000 metres this year, evaluate the potential of the
zones discovered last year and identify new resources. At the beginning of year
2009, an updated resource calculation for this area will be prepared with all
the information available as of December 31, 2008.
Nine-Month Review
For the nine-month period ended September 30, 2008, revenue was $11,633,026, or
38% above revenue of $8,433,442 during the same period of 2007, reflecting
increased gold sale prices per ounce as well as the increase of gold ounces
sold. In the 2008 nine-month period, 12,353 ounces of gold were sold at an
average price of US$919 (CAN$936) per ounce, compared with 11,284 ounces of gold
sold in the first nine months of 2007 at an average price of US$689 (CAN$741)
per ounce.
Operating costs, for the nine-month period ended September 30, 2008 were
$5,975,724, up $454,651 over operating costs of $5,521,073 during the same
period last year primarily due to the increase of 9.5% in production at the
Beaufor Mine.
Exploration and project evaluation costs were $1,031,771 during the nine-month
period ended September 30, 2008, compared with $424,127 during the same period
in 2007. The increase is mainly due to the costs associated to the ongoing
exploration program being done at the Beaufor Mine and to the reclassification,
for fiscal planning purposes of exploration tax credits of $214,565 pertaining
to prior years when in the nine-month period ended September 30, 2007
exploration credits of $253,056 were recorded against the exploration expense.
Net earnings for the nine-month period ended September 30, 2008 were $2,760,293
or $0.11 per share, compared with net earnings of $529,223, or $0.02 per share
during the nine-month period ended September 30, 2007.
Beaufor Mine
During the nine-month period ended September 30, 2008, 85,331 tonnes of ore were
processed from the Beaufor Mine at an average recovered grade of 9.01 g/t, and
24,707 ounces of gold were sold at an average price of US$919 (CAN$936) per
ounce, Louvem's share was 12,353 ounces. For the nine-month period ended
September 30, 2007, 83,508 tonnes of ore were processed at an average recovered
grade of 8.41 g/t, and 22,569 ounces of gold were sold at an average price of
US$689 (CAN$741) per ounce, Louvem's share was 11,284 ounces. For the first nine
months of 2008 the average cash cost per ounce of gold was US$475 (CAN$484)
which reflects an increase in US dollars when compared to the average cash cost
per ounce of gold of US$455 (CAN$489) for the same period in 2007, due to
variation in the Canadian dollar and an increase in mining and milling costs but
was offset by the increase in the recovered grade.
Outlook
In spite of the challenges touching the mining industry concerning mainly the
increase in cost of manpower and raw material, Louvem is pleased with the
operating improvements at the Beaufor Mine and remains confident about the
exploration potential on this property. The Company has no hedging contract on
gold and currency.
Jean-Guy Rivard
President and Chief Executive Officer
About Louvem Mine Inc.
The Company has a 50% interest in the Beaufor Mine and owns other exploration
properties located near Val-d'Or, in North-western Quebec, Canada.
More information on Louvem Mines can be found on its website at: www.louvem.com.
KEY FINANCIAL DATA
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Three-month period Nine-month period
ended September 30 ended September 30
2008 2007 2008 2007
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Results ($)
Revenues 3,791,438 1,407,223 11,633,026 8,433,442
Net earnings (loss) 878,640 (227,729) 2,760,293 529,223
Cash flow (used in) from
operations 1,529,203 (247,226) 4,275,202 2,610,488
Results per share ($)
Net earnings (loss) basic 0.03 (0.01) 0.11 0.02
Weighted average number of
common shares outstanding 25,929,689 25,929,689 25,929,689 25,929,689
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September 30, 2008 December 31, 2007
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Financial position ($)
Total assets 8,332,017 4,777,562
Working capital 4,993,363 1,817,690
Long term debt - -
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SALES AND PRODUCTION DATA
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Beaufor Mine - 50 % Three-month period ended September 30,
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2008 2007
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Gold sales (ounces) 4,001 1,880
Production of gold (ounces) 3,163 1,935
Cash cost (per ounce sold)(US$) 452 533
Cash cost (per ounce sold)(CAN$) 460 573
Average selling price (per ounce of gold)(US$) 922 677
Average selling price (per ounce of gold)(CAN$) 939 728
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Beaufor Mine - 50 % Nine-month period ended September 30,
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2008 2007
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Gold sales (ounces) 12,353 11,284
Production of gold (ounces) 13,362 11,200
Cash cost (per ounce sold)(US$) 475 455
Cash cost (per ounce sold)(CAN$) 484 489
Average selling price (per ounce of gold)(US$) 919 689
Average selling price (per ounce of gold)(CAN$) 936 741
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Average exchange rate used for 2007: US$1 equals CAN$1.0748
2008 estimated exchange rate: US$1 equals CAN$1.0184
The TSX Venture Exchange accepts no responsibility for the veracity or accuracy
of this news release.
Louvem Mines Inc. (TSXV:LOV)
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Louvem Mines Inc. (TSXV:LOV)
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から 7 2023 まで 7 2024
