Roca Mines Inc.

 Wed Apr 29, 2009
ROCA Reports Second Quarter Results

 Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca" or "the Company") has released its unaudited financial results for the three and six month periods ended February 28, 2009, including production and sales from the MAX molybdenum mine located in British Columbia, Canada. All dollar amounts are stated in Canadian dollars unless otherwise indicated.

Q2-2009 Highlights:
  • Revenues of $11.6 million for September 1 to February 28, 2009;
  • Cash flows from operations of $5.35 million or $0.06 cents per share during the six months ended February 28, 2009;
  • Cash costs of Cdn$8.01 (approx. US$6.80) per lb of molybdenum produced during the six months ended February 28, 2009.
  • Q1 and Q2 average molybdenum recoveries of approximately 95%; and
  • Q1 and Q2 molybdenum in concentrate production of 679,697 pounds and 451,130 lbs respectively.
Production Results and Concentrate Sales

The Company announced that it had achieved its commercial production targets on April 12, 2008 at its MAX molybdenum mine located in BC, Canada. The mine became BC's first new metal mine in a decade and the newest primary molybdenum mine in Canada.

Revenues of $11.6 million for the six months ended February 28, 2009 result from concentrate sales during September 2008 through February 2009 and reflect final and/or estimated final pricing at February 28, 2009. The Company sells its concentrates to a UK-based buyer with sales revenues based on average prevailing molybdenum oxide prices subsequent to delivery. The Company has no hedging program nor has it sold forward any of its production.

The table below is a summary of the operating statistics for the three months ended February 29, 2008:

MAX Mine Statistics




JAN '09

FEB '09


Molybdenum Produced (lbs) 1





Average Head Grade (% Mo)





Molybdenum Recovery (%)





Mill Availability (%)





Average Daily Throughput (tpd)





Note 1: molybdenum contained in concentrate

During December 2008, a rockfall occurred underground at the mine which impacted the immediate availability of production ore. The rockfall was localized to the stope development area of the 875 metre level. No workers were present on the level at the time and no one was harmed. The rockfall posed no threat to other working areas of the mine, but did impact the production schedule for the second quarter ending February 28, 2009. A maintenance break originally scheduled between December 12 and December 29, 2008, was extended to excavate the rockfall and adjacent ore in the stope. The mine recommenced production on January 8, 2009.

Cash costs of production during the second quarter were higher than the first quarter as result of higher costs and lower production during December and substantially lower operating efficiencies given the twenty-seven day shutdown between December and January. Cash costs averaged approximately Cdn$9.35 per lb (US$7.57) of molybdenum during the second quarter ended February 28, 2009. For the six months ended February 28, 2009 cash costs averaged of Cdn$8.01 (approx. US$6.80) per lb of molybdenum sold.

Financial Results

The information in this news release and the selected financial information should be read in conjunction with the unaudited financial statements, and management discussion and analysis, for the three and six months ended February 28, 2009, which will be available at Roca's website at

During the six months ended February 28, 2009, the Company recorded production revenues of $11,577,854 and a net loss of $11,850,042. Cash flows from operations totaled $5,349,824 during the period. The Company was in the development stage, had no revenues and a loss of $1,951,575 during the six months ended February 29, 2008. General and administrative expenses increased by approximately 15% over 2008, reflecting the Company's transition from exploration and development-company to producer.

During the three months ended February 28, 2009, the Company recorded production revenues of $3,267,337 and a net loss of $6,780,592. The Company recorded negative operating cash flows of $939,893 during the period because of lower grade ore processed in December of 2008 and the significant maintenance costs incurred after a rockfall occurred at the Max molybdenum mine. Cash flows from January-February sales and from an equity issuance completed during the quarter were used to offset these operating losses and to successfully restart the operation. The investments in mine development and underground maintenance at the mine ultimately allowed the Company to return to positive cash-flow in the latter part of quarter.

Summary Consolidated Statements of Operations and Loss:


Six months ended
February 28, 2009

Three months ended
February 28, 2009

Total Revenues



Operating expenses



Write-down of inventories



Depletion, amortization, accretion



Mining Loss



G&A, Stock-based comp., write-offs



Loss from Operations



Other income



Income and mining tax provision (recovery)



Net Loss for the Period



Loss per Share -- Basic and Diluted



Scott E. Broughton, P.Eng, is the qualified person responsible for the preparation of this news release under National Instrument 43-101.


"Scott Broughton"

Scott E. Broughton, P.Eng. -- President & CEO

For further information contact:
Investor Relations
Tel: 604-684-2900
Fax: 604-684-2902
Email: [email protected]

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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