| ||Fri Apr 29, 2011|
ROCA Reports Second Quarter Results
| ||Vancouver, British Columbia: Roca Mines Inc. (TSX-V: ROK) ("Roca" or "the Company") has released its financial results for the three and six months ended February 28, 2011. All dollar amounts are stated in Canadian dollars unless otherwise indicated. |
MAX Molybdenum Mine
The Company sells its concentrates to a UK-based buyer with final sales revenues based on average prevailing molybdenum oxide prices in periods subsequent to delivery. Revenues of $853,628 for the six months ended February 28, 2011 result from shipments totaling 54,923 lbs of contained molybdenum. The Company has no hedging program nor has it sold forward any of its production.
The Max Molybdenum Mine has had a sustained shutdown due to instability that occurred in September of 2010. During the six months ended February 28, 2011, crews have conducted rehabilitation work and geotechnical investigations to assess conditions and plan new miming activities.
A revised mine plan has now been prepared and reflects the desire to effectively isolate all future production from the stoping areas that have recently caused various production delays. Rehabilitation work commenced in November after adequate financing was received. In addition to rehabilitation and general maintenance at the site, a geotechnical program to survey the existing stope and mapping of other workings has been completed.
In parallel with the activities described above, the Company has been working with its various contractors to establish early mobilization dates for critical path work. These tasks include stope development and long-hole production drilling prior to restarting production. In addition, various contractors are reorganizing staffing and management for the mill and other operations at site.
The information in this news release and the selected financial information should be read in conjunction with the interim consolidated financial statements, and management discussion and analysis, for the period ended February 28, 2011, which will be available at Roca's website at www.rocamines.com.
During the six months ended February 28, 2011, the Company recorded production revenues of $853,628 (2010 - $7,132,426) and a net loss of $2,272,596 (2010 - $1,873,039). In the current year, the MAX molybdenum mine and mill operated for only a small portion of the operating period (16 days) and incurred temporary shutdown and rehabilitation costs of $1,445,588 (2010 - Nil).
The Company recorded a negative adjustment of $8,051 to revenues during the three months ended February 28, 2011 reflecting lower than expected realized prices for earlier shipments settled in the current period. The Company recorded revenues of $7,132,426 and a loss of $1,873,039 during the three months ended February 28, 2010 on significantly higher throughput and concentrate production.
Summary Consolidated Statements of Operations and Loss
||Three months ended
February 28, 2011
|Six months ended
February 28, 2011
|Cost of sales
|Depletion, amortization, accretion
|Temporary shutdown and rehabilitation costs
|General & Administrative
|Loss from Operations
|Exchange gain (loss) and other income (loss)
|Net Loss for the Year
|Loss per Share -- Basic and Diluted
It remains management's belief that molybdenum prices should remain significantly greater than historic values for the foreseeable future due to i) production problems globally, ii) the reduction of by-product production related to copper mines and iii) the inability of new mines to achieve financing. In real terms, recent global events have seriously eroded the supply of molybdenum and management believes that a realization of supply and demand fundamentals in the medium-term will result in positive changes to pricing. It is therefore management's goal to re-start production at the MAX Molybdenum mine and to advance its permitted 1000 tpd expansion plans. This will ultimately reduce unit costs and preserve the opportunity to produce concentrates in an appreciating price environment.
ROCA MINES INC.
David J. Skerlec -- Chief Financial Officer
For further information contact:
Email: [email protected]
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.
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