Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

News Feed Item

Sirocco Reports Results for Q3 2012

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/09/12 -- Sirocco Mining Inc. (TSX:SIM) ("Sirocco" or "the Company") is pleased to report financial and operating results for the quarter ended September 30, 2012. The consolidated financial statements together with Management's Discussion and Analysis will be available on the Company's web site (www.siroccomining.com) and on SEDAR (www.sedar.com).

In Q3 2012, the Company continued to improve its performance over 2011 with strong production along with solid financial results.

Highlights of the quarter include:


--  Iodine production of 259 tonnes (year-to-date: 941 tonnes) 
--  Average realized iodine prices of $63 per kilogram (year-to-date: $62) 
--  Gross profit of $4.3 million (year-to-date: $20.2 million) 
--  Cash flow from operations of $1.9 million (year-to-date: $15.7 million) 
--  Bank debt reduction of $2.6 million (year-to-date: $8.3 million)

Positive pre-feasibility studies for the production of nitrates and sulphates were received near the end of the third quarter. These studies have indicated the potential to produce up to 90,000 tonnes per annum of sodium nitrate from the existing water supply and current brine concentrations at an estimated production cost of $175 tonne and an estimated capital cost of $80 million. Operating margins are robust at current Chilean export sale prices of approximately $600 per tonne of NaNO3. The Board has approved the decision to move to a full feasibility study for the construction of a sodium nitrate processing facility. This study is anticipated to commence before the end of 2012.

The studies also support the potential of producing sodium sulphate at Aguas Blancas. Testwork and processing analysis is continuing, with various production and marketing scenarios being evaluated.

Commenting on the studies, Rick Clark, CEO, stated: "We are very encouraged by the results of the pre-feasibility studies. The Aguas Blancas deposit contains many marketable salts and we believe that there is great potential to develop the mine into a substantial multi-product industrial minerals operation. Sodium nitrate will be the next business at Aguas Blancas, with full feasibility underway. Ultimately, we see Sirocco as a significant cash flow producing Company which will deliver substantial returns to shareholders."

In support of the various development opportunities at Aguas Blancas, a preliminary economic assessment for the installation of a sea water pipeline is underway and is scheduled to be completed by the end of 2012.

Financial Results

The tables below summarize key financial and operating results of the Company for the Quarter.


---------------------------------------------------------------------------
                                             Three Months      Three Months
                                          Ended September   Ended September
                                                 30, 2012          30, 2011
---------------------------------------------------------------------------
Tonnes Mined (000t)                                 1,195             1,008
---------------------------------------------------------------------------
Iodine Grade (ppm)                                    552               574
---------------------------------------------------------------------------
Iodine Produced (t)                                   259               191
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Iodine Sold (t)                                       238               194
---------------------------------------------------------------------------
Cash operating costs per kg (note 1)                   38                43
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Sales Revenue ($'000)                              14,961             8,591
---------------------------------------------------------------------------
Gross Profit ($'000)                                4,347             (676)
---------------------------------------------------------------------------
Net Income/(loss) ($'000)                           (244)             (809)
---------------------------------------------------------------------------
Comprehensive Income/(loss) ($'000)                 2,237           (1,985)
---------------------------------------------------------------------------
Diluted Income/(loss) per share ($)                  0.00            (0.00)
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Total Assets ($'000)                              189,832           124,061
---------------------------------------------------------------------------
Net Assets ($'000)                                162,751            87,749
---------------------------------------------------------------------------

Note 1: Cash operating costs per kg is calculated by dividing cost of sales, adjusted for related depreciation and stock-based compensation, by quantities of iodine sold in the period.

Iodine production in Q3 2012 continues to reflect ongoing operating improvements. Aguas Blancas produced 36% more Iodine in Q3 2012 as compared to Q3 2011.

After three quarters of testwork and operations, the crushing and screening circuit at the agitated leach plant ("ALP") has proved to be impractical due to the highly variable proportion of volcanics in the feed which reduce throughput and cause significant wear in the leach tanks. During the third quarter this issue resulted in four weeks of downtime in the ALP. As a result, the Company has revised the forecast level of production for 2012 to a range of 1,200 to 1,250 tonnes of iodine, a reduction of approximately 12% from previous forecast levels of between 1,350 and 1,450 tonnes.

The solution to the volcanics issue will be the installation of a grinding mill which will produce a clean pebble reject and grind the volcanic chips to minimize wear issues. Testwork is being completed to determine the optimum sizing of the new mill. The Board of Directors has approved the purchase of the mill and operation is slated for 2014. With this new mill and installation of an associated thickener, leach throughput of 400 tonnes per hour is targeted, increasing production rates to over 2,000 tonnes of iodine per annum. The total capital cost is estimated to be approximately $15 million.

The Company has also initiated temporary measures to maximize production for 2013. The mined product will now be screened at source using mobile screening plants. The screened fines will be trucked to the ALP, slurried and processed in the leach section of the ALP. The screened coarse product will be trucked to the Heap Leach pads. These measures are expected to increase Iodine production rates at Aguas Blancas to approximately 1,600 tonnes iodine per annum in 2013.

The small third quarter loss is mainly attributable to the deferral of two late-September iodine shipments until the fourth quarter in accordance with the Company's revenue recognition policy. The associated net revenue for these shipments will be recognized in Q4 2012. Additional items affecting the net result included increased exploration costs at Aguas Blancas ($1.2 million) as the Company continues its program of converting inferred resources to indicated resources, and unrealized CDN-USD foreign exchange losses ($0.7 million) on US denominated short-term investments held by Sirocco.

Iodine prices realized for the quarter were $63 per kilogram and are expected to remain robust for 2012.

Sirocco stands at 30 September 2012 with a strong balance sheet that includes $72.8 million in cash and working capital of $89.2 million.

Commenting on the results of the third quarter, Rick Clark, CEO, said: "The Aguas Blancas mine continues to perform at highly improved levels compared to past years. Our operating team is now implementing mineral processing changes identified to increase iodine production for 2013. At the same time we are completing final engineering towards the ordering of a mill to further maximise production in 2014. Coupled with the strong financial position of the Company and expansion plans to develop other salt products, we are excited about the future potential of Aguas Blancas."

Exploration at Aguas Blancas is ongoing to convert inferred resources to the indicated category.

A conference call to discuss the financial and operating results will be held at 8am PST on Friday November 9, 2012. Participants should dial in on 1 877 974 0446 or 416 644 3417 and follow the prompts. A replay of the call will be available until midnight on November 16, 2012 by dialing 416 640 1917 or 1 877 289 8525, passcode 4570054#.

About the Company

Sirocco Mining Inc. is a Canadian company which produces iodine from its Aguas Blancas mine in northern Chile. In addition, the Company has exploration interests in Brazil and West Africa and is actively assessing other opportunities in the resource sector.

Cautionary Statements

This news release contains forward-looking statements concerning the Company's plans for its business and properties,. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its properties, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information, except as required by law, and disclaims any legal liability to the contrary.

On behalf of the Board,

Rick Clark, CEO

Contacts:
Sirocco Mining Inc.
Simon Jackson
President
(604) 689-7842
(604) 689-4250 (FAX)
www.siroccomining.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The paradigm has shifted. A Gartner survey shows that 43% of organizations are using or plan to implement the Internet of Things in 2016. However, not just a handful of companies are still using the old-style ad-hoc trial-and-error ways, unaware of the critical barriers, paint points, traps, and hidden roadblocks. How can you become a winner? In his session at @ThingsExpo, Tony Shan will present a methodical approach to guide the holistic adoption and enablement of IoT implementations. This ov...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...