|By PR Newswire||
|November 9, 2012 07:31 AM EST||
CALGARY, Nov. 9, 2012 /CNW/ - TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) (TVI or the Company) today announced its unaudited, consolidated financial and operational results for the quarter ended September 30, 2012.
For a thorough explanation of the points discussed in this news release, shareholders are encouraged to read the unaudited interim consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), and the management's discussion and analysis for the periods ended September 30, 2012 and September 30, 2011 and the audited consolidated financial statements for the years ended December 31, 2011 and 2010. These documents were filed with certain securities regulators in Canada, and are available on our web site (www.tvipacific.com or under our profile on SEDAR www.sedar.com).
Q3 2012 Highlights
- Net revenue of $19.8 million realized from the sale of concentrate
- Net income of $532.6 thousand
- Earnings before interest, taxes, depreciation and accretion of $3.2 million
- Cash balance of $9.5 million at quarter end
- Short-term debt facilities of $7.6 million (average interest rate of 2.01%)
- A working capital surplus of $12.2 million
June 30, 2012
|Gross revenue ($ million)||$22.4||$30.5||$26.5|
|Net revenue ($ million)||$19.8||$26.9||$22.6|
|Total cost per Copper Pound Equivalent (1) (US$)||$2.41||$2.75||$2.62|
|Production cash cost per Copper Pound Equivalent (2) (US$)||$1.29||$1.33||$1.29|
|Total cash cost per Copper Pound Equivalent net of by-products (3) (US$)||$0.81||$1.04||$0.65|
|Net income ($ million)||$0.53||$2.96||$2.10|
|Basic net income per share||$0.000||$0.004||$0.003|
|Average copper price received (US$/lb)||$3.48||$3.90||$3.57|
|Cash balance at quarter end ($ million)||$9.5||$13.8||$17.5|
|Letters of credit and loan facilities ($ million) (4)||$7.6||$25.7||$12.9|
|Working capital surplus ($ million)||$12.2||$1.0||$13.3|
(1) Includes selling expenses and amortization expenses
(2) Excludes selling expenses and amortization expenses
(3) Includes selling expenses and excludes amortization expenses
(4) Average interest rate of: 2.01% for Q3 2012, 5.88% for Q3 2011 and 2.04% for Q2 2012
The Canatuan mine generated net revenues of $19.8 million in Q3 2012 from the sale of concentrates, net of treatment, refining and penalties. The net revenue comprised two shipments of copper concentrate and is 26% lower than the $26.9 million net revenue realized during the same period in 2011. Copper prices during Q3 2012 were US$3.48/lb compared to $3.90/lb in Q3 2011 and US$3.57 in Q2 2012. This drop in copper prices contributed to the lower net revenue in Q3 2012 compared to both Q3 2011 and Q2 2012.
Net income was $0.53 million in Q3 2012, 82% lower than the $2.96 million in Q3 2011. Net income was impacted by higher general and administrative expenses during the quarter as a result of one-time charges incurred in relation to the acquisition of investment and joint venture arrangements with Foyson Resources Limited and Mindoro Resources Ltd. and legal and other administrative expenses related to the Balabag project. The lower average copper prices also partially contributed to a lower net income in Q3 2012.
Net income breakdown
September 30, 2012
|Reported net income||0.5|
|Interest expense and income taxes||0.2|
|Depreciation, depletion and accretion||2.5|
|One-time due diligence costs and other fees||2.0|
Net income before interest, taxes, depreciation and accretion
and one-time charges
The average copper mill feed grade during Q3 2012 was 0.92% Cu, consistent with Q2 2012. The average throughput improved slightly (from 2,520 dry metric tonnes in Q2 2012 to 2,580 dry metric tonnes in Q3 2012) resulting in a slight increase in copper pound equivalent of concentrates produced during Q3 2012. Cyanide use during the third quarter was minimal with only a week of cyanide use in September during a campaign to clean the concentrate from elevated levels of lead (Pb). Mill operating costs will continue to be below budget/forecast because of the significant reduction in reagent consumption, particularly cyanide and the reagent that neutralizes the cyanide in the tailings. As a result Canatuan realized significantly higher than planned metal recoveries and lower than budget operating costs. TVI expects to complete two copper shipments during the remainder of 2012.
Stage 4 construction of the Sulphide Tailings Storage Facility was completed in the second quarter of 2012 and provides sufficient storage capacity for the remaining ore reserve tailings. Work during the third and subsequent quarters was focused on erosion control and re-vegetation of the areas disturbed during construction in preparation for the final mine closure rehabilitation program.
June 30, 2012
|Average tonnes processed per day||2,580||2,535||2,520|
|Ore copper grade (%)||0.92||1.21||0.92|
|Copper concentrate copper grade (%)||18.33||23.74||18.46|
|Copper concentrate gold grade (g/t)||9.41||6.83||9.48|
|Copper concentrate silver grade (g/t)||333.39||466.85||370.51|
|Zinc concentrate zinc grade (%)||48.40||-||49.64|
|Copper pound equivalent produced||7,034,311||7,521,596||6,997,256|
|Copper produced (lbs)||3,924,034||4,497,398||3,750,947|
|Gold produced (oz)||3,085||1,886||2,745|
|Silver produced (oz)||109,055||139,820||127,685|
|Zinc produced (lbs)||1,789,459||2,486,913||4,197,683|
In Q3 2012 average mill throughput increased to 2,580 from 2,520 dry metric tonnes per day in Q2 2012; copper, gold, silver and zinc grades of concentrates produced were slightly lower compared to the previous quarter. Copper pound equivalent produced increased 1% quarter over quarter.
During the third quarter of 2012, the mill processed 237,383 tonnes; however, only a portion of original ore reserves was consumed due to the additional material found and mined during the year. This material, primarily mineralized schist, was used as a blending material to optimize mill recoveries and was located both inside and outside the pit shell and not included in the original ore reserves. Detailed metallurgical and ore reserve studies will continue to be undertaken to determine future processing scenarios and their potential impacts on the ore reserves and mine life.
Based on average daily throughput going forward of 2,600 tonnes per day, mine life is approximately 1.0 year (subject to change in throughput to meet shipping commitments).
In Q3 2012, TVI completed two copper concentrate shipments (30th and 31st) for a total of 10,274 dry metric tonnes. Approximately 5,000 dry metric tonne copper concentrate shipments are expected to occur approximately every 6 to 8 weeks, while zinc concentrate shipments are expected to occur approximately every 4 to 6 months. To date, 31 copper concentrate shipments of approximately 5,000 dry metric tonnes each have been completed. Additionally, 4 zinc concentrate shipments have been completed to date, totalling 15,828 dry metric tonnes. The 32nd copper shipment began loading in early November 2012 and the 5th zinc shipment is scheduled in the last quarter of 2012.
As of September 30, 2012, TVI had short term debt facilities totalling $7.6 million at an interest rate averaging 2.01%. Cash on hand was $9.5 million at the same date.
Presidential Executive Order #79 and Implementing Rules and Regulations (IRR)
On July 9, 2012, The Philippine Government introduced a new mining policy in the form of a Presidential Executive Order ("EO #79"), which provided direction to agencies of the Administration to carry out certain directives and signalled the Government's intention to seek legislation "rationalizing existing revenue sharing schemes and mechanisms". Subsequent to the last quarterly report, the Department of Environment and Natural Resources has published a set of Implementing Rules and Regulations (IRR) that came into effect on October 25, 2012. The majority of the IRR text confirmed - by way of implementation - the elements of EO #79 detailed in TVI's Q3 2012 management's discussion and analysis. However, there were certain new elements and clarifications pertinent to TVI Resource Development (Phils.), Inc.'s business:
While the IRR confirmed that there will be no new mining agreements
entered into until new legislation has been passed by Congress,
"rationalizing existing revenue schemes and mechanisms", it introduced
the possibility of expansion of existing contract areas if the Economic
Development Cabinet Cluster rules that "there is an imminent or
threatened economic disruption, such as a shortage of critical
commodities or raw materials, that could adversely affect priority
government projects and/or economic activities." TVIRD intends to make
application to the Government to expand the Canatuan Mineral Production
Sharing Agreement (MPSA) to incorporate nearby prospects, which, when
drilled, may extend the life of the project - as a possible alternative
to applying for an Exploration Permit over these prospects.
The IRR introduced a series of clauses, which combined; give the
Government the right to impose new terms and conditions on MPSAs as a
condition for their renewal for 25 years after the expiry of the first
25-year term. Industry has protested that these provisions may not be
constitutional because they constitute an executive branch order that
is in conflict with the Mining Act. However, TVIRD's MPSAs (originally
purchased from other entities) are not affected as they already contain
a provision allowing the Government to set new terms and conditions at
the time of renewal.
- The IRR state that any mining applicant, whether individuals or juridical entities, with a record of an un-remediated environmental incident will not be eligible for new mining tenements. Industry has raised the concern that this clause may be interpreted in future to include shareholders in publicly listed companies, of which management is not aware and over who has no responsibility.
The foregoing information regarding selected aspects of EO #79 and its corresponding IRR has been included in the MD&A to provide an update for readers who would otherwise be unaware of this recent development. That information is based upon the text of EO #79 and its corresponding IRR and statements made by various Government officials in the Philippines in relation to that order and the corresponding IRR. Readers are cautioned not to place undue reliance upon the information respecting EO #79 and the corresponding IRR set out above, as there can be no assurances, at this time, with respect to the timing of implementation of new legislation and regulations or the ultimate effect that such legislation and regulations may have upon companies, such as TVIRD, operating in the Philippines mining sector.
About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)
TVI Pacific Inc. is a publicly-traded Canadian company that is focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is in pre-development stage at its Balabag gold and silver project. TVI also has an interest in an offshore Philippine oil property.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "schedule" and similar expressions. Forward-looking statements are based upon the opinions and expectations of TVI as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied. These factors include, but are not limited to, such things as general economic conditions in Canada, the United States, the Philippines and elsewhere; volatility of prices for precious metals, base metals, oil and gas; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with the exploration and development of mining properties; inherent risks associated with the exploration of oil and gas properties; ultimate recoverability of reserves; production, timing, results and costs of exploration and development activities; political or civil unrest; availability of financial resources or third-party financing; new laws (domestic or foreign); changes in administrative practices; changes in exploration plans or budgets; and availability of personnel and equipment (including mechanical problems). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.
Forward-looking statements regarding forward production costs and shipping and refining costs are based are based on current and previous mineral reserve and resource estimates, current mining and processing activities, prior experiences of management with mining and processing activities, the current development and operating plan, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements regarding the remaining mine life of the Canatuan deposit are based on current and previous mineral reserve and resource estimates, current mining and processing activities, prior experiences of management with mining and processing activities, the current development and operating plan, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements respecting the copper and zinc concentrate shipping schedules are based on the Company's previous experience with concentrate shipments, current mining and processing activities, current and previous mineral reserve and resource estimates, discussions to date with the off-take partner, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements regarding the nature and timing of exploration at the Greater Canatuan Tenement Area (including EXPA 61, Malusok and SE Malusok), Tamarok and the Company's other tenements in the Philippines are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, and the Company's overall plans, budget and strategy (which are all subject to change). In certain cases, the timing of exploration activities in the Philippines is dependent upon the receipt of free prior informed consent from indigenous communities and regulatory approvals from the government of the Philippines. Forward-looking statements regarding expectations that the Company will be able to find additional ore in the Greater Canatuan Tenement Area (including EXPA 61, Malusok and SE Malusok) are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, management's current and previous experience with mining and processing activities at Canatuan, and the Company's overall plans, budget and strategy (which are all subject to change). Forward-looking statements regarding the resumption of drilling activities at Tamarok are based on the exploration carried out to date and the Company's overall plans, budget and strategy for Tamarok (which is subject to change). Forward-looking statements regarding the arrival date of additional drilling rigs in the Philippines are based on discussions with third parties.
The forward-looking statements of the Company contained in this news release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which TVI and its affiliates are exposed in the conduct of their business are described in detail in the Company's Annual Information Form for the year ended December 31, 2011, which was filed on SEDAR on March 30, 2012, and is available at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this news release to reflect subsequent events or circumstances, except as required by law.
SOURCE TVI Pacific Inc.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be.
Sep. 4, 2015 02:00 PM EDT Reads: 226
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Sep. 4, 2015 02:00 PM EDT Reads: 271
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Sep. 4, 2015 12:30 PM EDT Reads: 121
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
Sep. 4, 2015 12:00 PM EDT Reads: 110
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Sep. 4, 2015 12:00 PM EDT Reads: 502
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Sep. 4, 2015 12:00 PM EDT Reads: 297
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Sep. 4, 2015 11:45 AM EDT Reads: 401
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
Sep. 4, 2015 11:00 AM EDT Reads: 431
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
Sep. 4, 2015 11:00 AM EDT Reads: 1,617
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Sep. 4, 2015 10:45 AM EDT Reads: 663
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
Sep. 4, 2015 10:00 AM EDT Reads: 136
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Sep. 4, 2015 09:30 AM EDT Reads: 336
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small, but are focused on specific tasks. The ability for developers to deploy multiple containers – thous...
Sep. 4, 2015 09:00 AM EDT Reads: 213
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
Sep. 4, 2015 08:15 AM EDT Reads: 2,047
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Sep. 4, 2015 07:00 AM EDT Reads: 304
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Sep. 4, 2015 06:00 AM EDT Reads: 757
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Sep. 4, 2015 06:00 AM EDT Reads: 509
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Sep. 4, 2015 04:30 AM EDT Reads: 1,708
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
Sep. 4, 2015 02:00 AM EDT Reads: 275
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Communication) is an open source project supported by Google, Mozilla and Opera that aims to enable bro...
Sep. 4, 2015 01:15 AM EDT Reads: 1,635