Minera IRL Limited Reports Second Quarter 2017 Results

Transcription

1 Minera IRL Limited Reprts Secnd Quarter 2017 Results LIMA, PERU - (Marketwired August 15, 2017): Minera IRL Limited ( Minera IRL r the Cmpany ), (CSE:IRL) (BVL:MIRL), the Latin America gld mining cmpany, is annuncing that it has reprted financial and perating results fr the quarter ended 30 June Financial HIGHLIGHTS Gld sales f 6,531 unces (Q2 2016: 5,635 unces) at an average realized gld price f $1,253 per unce (Q2 2016: $1,263 per unce). Revenue f $8.2 millin, (Q2 2016: $7.1 millin). Grss prfit f $2.7 millin (Q2 2016: $2.0 millin). Administrative expenses f $0.8 millin (Q2 2016: $1.8 millin). Lss befre tax f $1.2 millin (Q2 2016: 2.1 millin). Cash balance f $4.2 millin at the end f the secnd quarter (31 December 2016: $6.8 millin). Debt f $73.1 millin at the end f the quarter (31 December 2016: $69.2 millin). Operatinal Perfrmance Crihuarmi Increase f 17% in gld prductin frm the Crihuarmi Mine ver the secnd quarter 2016; (Q2 2017: 6,678 unces, Q2 2016: 5,700 unces). Increase f 15% in tnnes f re mined and stacked ver the secnd quarter 2016; (Q2 2017: 803,111 tnnes, Q2 2016: 697,213 tnnes). Waste f 584,949 tnnes (Q2 2016: 366,141 tnnes). The mine renewed its dump truck fleet (10 trucks) thrugh a $1.5 millin lease agreement, reducing perating csts. Ttal cash csts were $812 per unce prduced (2016: $784). Ttal all-in sustaining csts (AISC) were $1,025 per unce prduced (2016: $1,090). Explratin wrk extends the life f mine thrugh mid Currently updating Crihuarmi s technical reprt NI Ollachea With assistance frm Mining Plus and Ernst & Yung the mining plans and financial mdels have been updated in rder t ptimize the prject reducing CAPEX and increase the cut-ff grade.

2 The Cmpany btained a precautinary rder frm the Superir Curt f Justice f Lima t prtect its assets and investments in the Ollachea Prject and initiate an arbitratin prcess t reslve discrepancies regarding the COFIDE Bridge Lan. COFIDE and the Cmpany have appinted their arbitratrs. These tw arbitratrs will appint a third arbitratr t cmplete the Arbitratin Panel. Onging discussins with ptential investrs The Cmpany cntinues with its cmmunity prgrams and maintaining a psitive relatinship with the Ollachea Cmmunity. Cmmenting n the quarterly results, Gerard Perez, Minera IRL Limited s Chairman, stated: Our Crihuarmi Gld Mine cntinues t exceed expectatins, gld prductin has increased by 17% and the annual prductin is nw estimated t reach 24,000 unces cmpared t a budget f 22,000 unces at the beginning f the year. The Cmpany has extended the life f mine thrugh mid-2020 and is currently updating Crihuarmi s technical reprt NI which is expected t be cmpleted during the next quarter. In additin, the mine renewed a $1.5 millin lease agreement n 10 trucks and expected t renew the lease n the remaining 5 trucks during the next quarter. During the secnd quarter f 2017 with assistance frm Mining Plus and Ernst & Yung, the Cmpany has made significant effrts t ptimize its mining plan and financial mdel reducing CAPEX and increasing the cut-ff grade f ur flagship Ollachea Prject. We believe that this ptimizatin exercise enhances the attractiveness f the prject t ptential investrs and will facilitate the funding f the prject. The Cmpany plans t upgrade the Minapampa Far East explratin target int its resurce estimate and mine plan nce additinal funds are available t cmplete an in-fill drill campaign. The drill hle results, annunced in February 2017, have been used t utline an explratin target in the Minapampa Far East mineralized zne f 370,000 t 550,000 unces f gld cntained within 3.1 t 4.6 millin tnnes, grading 2.9 t 4.3 g/t gld. Cncerning the arbitratin in the Natinal and Internatinal Arbitratin Centre f the Lima Chamber f Cmmerce, COFIDE and the Cmpany have appinted their arbitratrs, wh will appint a third arbitratr t cmplete the Arbitratin Panel. We hpe t achieve a reasnable slutin fr the parties. In the meantime, the Cmpany assets and investments cntinue t be prtected by a precautinary rder frm the Superir Curt f Justice f Lima issued n 06 June We thank ur emplyees fr their hard wrk, the cmmunity fr their cnstant supprt and ur sharehlders fr their faith and patience. We are anticipating a year f gd results, while the Bard is fcused n imprving perating csts and prductin as well as lking fr new pprtunities t btain financing t advance Ollachea s develpment.

3 Summary f the key financials fr the three and six mnths ended 30 June Summary f Key Financial and Operatinal Measures Operating Parameters Three Mnth Perid Six Mnth Perid Ended 30 de June 1,025 1, Waste (tnnes) 584, ,141 1,006, ,377 Ore mined & stacked n heaps (tnnes) 803, ,213 1,480,712 1,455,035 Ore grade, mined and stacked (g/t gld) Gld prduced (unces) 6,678 5,700 13,089 11,469 Gld sld (unces) 6,531 5,635 12,928 11,267 Realized gld price ($ per unce sld) 1,253 1,263 1,238 1,228 Ttal cash csts ($ per unce prduced) Ttal all-in sustaining csts ($ per unce) 11 prduced) 1 Financial Results Three Mnths Perid Six Mnth Perid Revenue ($ 000) 8,183 7,126 16,001 13,870 Gld sld (unces) 6,531 5,635 12,928 11,267 Realized gld price ($ per unce ) 1,253 1,263 1,238 1,228 Grss prfit ($ 000) 2,671 1,979 4,838 3,361 Lss after-tax ($ 000) (1,527) (2,421) (3,276) (5,100) Cmprehensive lss ($ 000) (1,527) (2,421) (3,276) (5,100) Lss per share (cents) (0.7) (1.0) (1.4) (2.2) 1. Refer t Nn-IFRS Measures at the end f the Cmpany s Management s Discussin and Analysis fr the quarter ended June 30, Outlk In 2017, the Cmpany is frecasting gld prductin f 24,000 unces frm Crihuarmi. Prductin is expected t cme mainly frm the Cayhua zne, alng with cntinued prductin frm znes Susan, Laura, Tamb Nuev, Diana extensin, plus nearby Scree Slpe material. The 2017 Crihuarmi capital budget is $2.0 millin fr the cnstructin f a heap leach pad and a waste dump site. This expansin is t accmmdate all f the material that is scheduled t be mined and stacked until the secnd quarter f 2018.

4 Between December 2016 and March 2017, the Cmpany cmpleted 7,291 meters f explratin diamnd drilling in 86 drill hles at the Crihuarmi mine. The explratin prgram defined additinal resurces at the Cayhua, Tamb Nuev and Laura znes. As a result f the explratin activities and evaluatin, the Crihuarmi mine life has been extended until mid An updated NI reprt n the mine plan is currently being prepared and is expected t be cmpleted in the next quarter. FOR FURTHER INFORMATION, PLEASE CONTACT: Minera IRL Limited Gerard Perez, Chairman Dieg Benavides Nrlander Directr and Chief Executive Officer Carls Ruiz de Castilla Chief Financial Officer N stck exchange, securities cmmissin r ther regulatry authrity has apprved r disapprved the infrmatin cntained in this news release. Cautinary Statement n Frward-Lking Infrmatin Certain infrmatin in this news release, including infrmatin abut the Cmpany s financial r perating perfrmance, infrmatin abut the legislative regime t which the Cmpany is subject, and ther statements expressing management s expectatins r estimates f future events, perfrmance and explratin and develpment prgrams r plans cnstitute frward-lking statements. Frward-lking statements in this press release include that annual prductin is nw estimated t reach 24,000 unces, that we expected t renew the lease n the remaining 5 trucks during the next quarter, ur plans fr establishment f updated resurce estimates, that ur updated mining plans will facilitate the funding f the Prject, ur plans t upgrade the Minapampa Far East explratin target int ur resurce estimate and cmplete an in-fill drill campaign, and the expected timing t accmplish each f them; and that the Minapampa Far East mineralized zne cntains 370,000 t 550,000 unces f gld grading 2.9 t 4.3 g/t gld. Frward-lking statements are, necessarily, based upn a number f estimates and assumptins. While cnsidered by management t be reasnable in the cntext in which they are made, frward-lking statements are inherently subject t plitical, legal, regulatry, business and ecnmic risks and cmpetitive uncertainties and cntingencies. The Cmpany cautins readers that frward-lking statements invlve knwn and unknwn risks, uncertainties and ther factrs

5 that may cause Minera IRL s actual financial results, legislative envirnment, future perfrmance and results f explratin and develpment prgrams and plans t be materially different than thse expected r estimated future results, perfrmance r achievements and that frward-lking statements are nt guarantees f future perfrmance, results r achievements. Minera IRL assumes n bligatin, except as may be required by law, t update r revise them t reflect new events r circumstances. Risks, uncertainties and cntingencies and ther factrs that might cause actual perfrmance t differ frm frward-lking statements include, but are nt limited t, any failure t btain r cmplete prject financing fr the Ollachea Gld Prject (including the Senir Debt Facility), availability f labur and equipment and financial resurces, delays in develpment r in receiving reprts n ur develpment, changes in the price f precius metals and cmmdities, changes in the relative exchange rates f the US dllar against the Peruvian nuev sl, interest rates, legislative, plitical, scial r ecnmic develpments bth within the cuntries in which the Cmpany perates and in general, cntests ver title t prperty, the speculative nature f mineral explratin and develpment, perating r technical difficulties in cnnectin with the Cmpany s develpment r explratin prgrams, increasing csts as a result f inflatin r scarcity f human resurces and input materials r equipment. Knwn and unknwn risks inherent in the mining business include ptential uncertainties related t the title f mineral claims, the accuracy f mineral reserve and resurce estimates, metallurgical recveries, capital and perating csts and the future demand fr minerals. Fr additinal infrmatin, please cnsult the Cmpany s mst recently filed MD&A and Infrmatin Frm.