(Expressed in US dollars except where noted as
C$)
TORONTO, Nov. 26, 2014 /CNW/ - Red Tiger Mining Inc.,
(TSXV:RMN), (the "Company" or "Red Tiger") today reported its
financial and operating results for the three and nine months ended
September 30, 2014. This press
release should be read in conjunction with the Company's unaudited
Financial Statements for the three and nine months ended
September 30, 2014 and Management's
Discussion and Analysis ("MD&A") for the corresponding period,
available on the Company's website at www.redtigermining.com and on
SEDAR at www.sedar.com.
Temporary Suspension of Mining
Copper recovery from the leaching operations began to decline in
September and October. Investigation of the cause has revealed that
a sudden and unprecedented occurrence of clay materials has
appeared in the ore in the South area of the mine where the last
few benches of the slip fault area were being mined. This clay
material was mixed with the ore sent to the crusher and onto the
leach pad. The mixing of this clay material in the ore, coupled
with the dozer spreading this ore on the pads, has resulted in a
top layer of low permeability of the heaps built in the past two
months.
Mining operations have been suspended temporarily to allow time
to improve the permeability of the top ore pads by deep ripping,
and changing the leaching solution irrigation from drip to
"wobbler" sprinklers. Heap irrigation is continuing which is
maintaining the current lower level of copper production while
implementing these improvements.
This provides the opportunity to conduct a short drilling
program in the North and South pit areas of the mine to provide
more information to improve the accuracy of mine production
scheduling when mining is recommenced.
Third Quarter Highlights
- Comex Grade 1 Copper cathodes production of 1,274 tonnes for
the three months ended September 30,
2014
- Copper sales of $8,671,348 for
the three months ended September 30,
2014 at an average realized price(1) of $3.09 per
pound
- Total cash costs per copper pound(1) of $1.73 and average
realized margin(1) of $1.36 per pound for the three months ended
September 30, 2014
- Net loss of $1,264,647 or
$0.01 per share for the three months
ended September 30, 2014
- Adjusted EBITDA(1) of $2,880,330 or adjusted EBITDA per
share(1) of $0.03 for the three months ended September 30, 2014
- Cash of $1,341,801 as at
September 30, 2014
(1) "Total cash costs per pound", "Average realized
price", "Average realized margin", "Adjusted EBITDA" and "Adjusted
EBITDA per share" are non-IFRS financial performance measures with
no standard meaning under IFRS. Refer to the "Non-IFRS Financial
Performance Measures" section of this MD&A for reconciliations
of these non-IFRS measures.
Nine Month Highlights
- Comex Grade 1 Copper cathodes production of 4,705 tonnes for
the nine months ended September 30,
2014
- Copper sales of $32,093,753 for
the nine months ended September 30,
2014 at an average realized price(1) of $3.09 per
pound
- Total cash costs per copper pound(1) of $1.56 and average
realized margin(1) of $1.53 per pound for the nine months ended
September 30, 2014
- Net loss of $1,179,236 or
$0.01 per share for the nine months
ended September 30, 2014
- Adjusted EBITDA(1) of $12,715,814 or adjusted EBITDA per
share(1) of $0.13 for the nine months ended September 30, 2014
- Cash of $1,341,801 as at
September 30, 2014
(1) "Total cash costs per pound", "Average realized
price", "Average realized margin", "Adjusted EBITDA" and "Adjusted
EBITDA per share" are non-IFRS financial performance measures with
no standard meaning under IFRS. Refer to the "Non-IFRS Financial
Performance Measures" section of this MD&A for reconciliations
of these non-IFRS measures.
Subsequent to September 30,
2014 Events
On November 4, 2014, the Company
announced that Mr. Robert Wunder
resigned from his position as President and Chief Executive Officer
of the Company. Mr. Wunder stepped down for personal reasons, and
will also no longer serve as a director of the Company.
On November 4, 2014, the Board of
Directors unanimously approved the appointment of Mr. David Lurie, the Company's Chief Financial
Officer, to serve as Interim President and Chief Executive Officer.
A search is underway for a new President and Chief Executive
Officer. During the interim period, the day-to-day operations of
the Company will be supervised by Mr. Lurie.
As previously discussed, mining operation have temporarily been
suspended in order to improve permeability of the stacked ore on
the leach pad, as well as to conduct a small drill program in the
mine.
Selected
Operational and Financial Information
|
|
|
|
|
|
|
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
OPERATING
RESULTS
|
|
|
|
|
|
|
|
Mining
|
|
|
|
|
|
|
|
Ore mined
|
tonnes
|
248,408
|
283,480
|
331,465
|
293,355
|
248,342
|
230,432
|
Waste rock mined and
removed
|
tonnes
|
1,273,452
|
1,343,687
|
1,297,719
|
997,378
|
1,333,793
|
1,047,433
|
Total
mined
|
tonnes
|
1,521,860
|
1,627,167
|
1,629,184
|
1,290,733
|
1,582,135
|
1,277,865
|
Waste-to-ore
ratio
|
|
5.1
|
4.7
|
3.9
|
3.4
|
5.4
|
4.5
|
Average grade of
mined ore
|
total
copper
|
1.15%
|
1.16%
|
0.91%
|
0.84%
|
0.96%
|
1.25%
|
|
|
|
|
|
|
|
|
Crushing and
Stacking
|
|
|
|
|
|
|
|
Ore crushed and
stacked
|
tonnes
|
250,133
|
279,970
|
319,457
|
292,329
|
241,599
|
230,326
|
Average grade of
stacked ore
|
total
copper
|
1.15%
|
1.29%
|
1.03%
|
0.97%
|
0.96%
|
1.50%
|
|
|
|
|
|
|
|
|
Copper cathodes
produced
|
tonnes
|
1,274
|
1,812
|
1,619
|
1,784
|
1,536
|
1,108
|
|
|
|
|
|
|
|
|
FINANCIAL
RESULTS
|
|
|
|
|
|
|
|
Copper
sales(1)
|
$
|
8,671,348
|
12,466,706
|
10,955,699
|
12,884,804
|
10,990,682
|
-
|
Production
costs
|
$
|
4,556,892
|
6,155,323
|
4,058,486
|
6,861,256
|
2,329,048
|
-
|
Net (loss)
earnings
|
$
|
(1,264,647)
|
144,871
|
(59,460)
|
(5,121,019)
|
3,014,042
|
(350,792)
|
Total cash costs per
copper pound(2)
|
$/pound
|
1.73
|
1.65
|
1.33
|
1.78
|
1.12
|
-
|
Average realized
price(2)
|
$/pound
|
3.09
|
3.12
|
3.07
|
3.28
|
3.24
|
-
|
Average realized
margin(2)
|
$/pound
|
1.36
|
1.47
|
1.74
|
1.50
|
2.12
|
-
|
(1) Prior to the Company declaring commercial production
on July 1, 2013, all previous
revenues were credited against capitalized project costs.
(2) Total cash costs, average realized price and average
realized margin are calculated on post-commercial pounds sold
only.
(3) Refer to the section on Non-IFRS Financial Performance
Measures at end of the press release. Reconciliation of these
measures is described in the MD&A.
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this press
release, including "total cash cost per copper pound", "average
realized price", "average realized margin", "adjusted EBITDA" and
"adjusted EBITDA per share". The Company believes these measures,
in addition to conventional measures prepared in accordance with
IFRS, provide investors an improved ability to evaluate the
underlying performance of the Company. The non-IFRS measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers.
Refer to pages 11 and 12 of the Company's MD&A for the nine
months ended September 30, 2014 for a
reconciliation of these measures.
Forward-Looking Information
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information is based on
plans, expectations and estimates of management at the date the
information is provided and is subject to certain factors and
assumptions, including, that the Company's financial condition and
development plans do not change as a result of unforeseen events,
that the Company obtains regulatory approval, future metal prices
and the demand and market outlook for metals. Forward-looking
information is subject to a variety of risks and uncertainties and
other factors that could cause plans, estimates and actual results
to vary materially from those projected in such forward-looking
information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, delays in
regulatory approval, risks associated with the interpretation of
data, the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's
expectations, as well as the other risks and uncertainties
applicable to mineral exploration and development activities and to
the Company as set forth in the Company's latest management
discussion and analysis filed under the Company's profile at
www.sedar.com. The Company undertakes no obligation to update these
forward-looking statements, other than as required by applicable
law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Red Tiger Mining Inc.