Welcome!

Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

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
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
BnkToTheFuture.com is the largest online investment platform for investing in FinTech, Bitcoin and Blockchain companies. We believe the future of finance looks very different from the past and we aim to invest and provide trading opportunities for qualifying investors that want to build a portfolio in the sector in compliance with international financial regulations.
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...