|By Marketwired .||
|May 19, 2014 07:00 AM EDT||
LONDON, UNITED KINGDOM -- (Marketwired) -- 05/19/14 -- Amara Mining plc (AIM: AMA)
Amara Mining plc
("Amara" or "the Company")
Q1 2014 UPDATE
Amara Mining plc, the AIM-listed West African-focused gold mining company, is pleased to announce an update for the quarter ended 31 March 2014 ("Q1 2014").
- Amara is fully-funded to deliver an initial Feasibility Study ("FS") for its Yaoure Gold Project ("Yaoure") in Q1 2015 following the successful placing and open offer, which raised US$30.5 million
- Preliminary Economic Assessment ("PEA") for Yaoure demonstrated that a number of throughput scenarios generate compelling returns, underlining that the project is highly flexible and resilient at low gold prices
- In-fill drilling campaign has commenced at Yaoure, with drilling results expected in late Q2 2014 and two Mineral Resource updates expected in Q3 and Q4 2014
- First phase of results of optimisation work completed on the Feasibility Study for the Baomahun Gold Project ("Baomahun")
- 9% increase in production at the Kalsaka/Sega gold mine ("Kalsaka/Sega") compared to Q4 2013 to 16,263 ounces
- 16% decrease in total cash costs (including royalties) compared to Q4 2013 to US$1,082 per ounce
- US$4.1 million increase in Kalsaka/Sega EBITDA compared to Q4 2013 to US$3.5 million
- Cash and liquid assets of US$7.3 million as at 31 March 2014, not including the proceeds of the placing and open offer
- Company's production guidance of 60,000-70,000 ounces for the full year is maintained although production is now expected to be towards the lower end of the range
John McGloin, Executive Chairman of Amara, commented:
"Q1 2014 has been an important period in Amara's growth due to the release of the Yaoure PEA and the subsequent placing and open offer. Yaoure is now recognised as one of the most exciting development projects in West Africa, with compelling economics that make it one of the few projects that remain resilient at low gold prices. I was delighted with the support the capital raising received and with these new funds, we have commenced the in-fill drilling programme at Yaoure that will allow us to deliver two Mineral Resource updates in H2 2014 and an initial FS in Q1 2015. We also made progress at Baomahun during the quarter, with the first phase of optimisation work showing that the project is a second strong growth opportunity for Amara. Production increased by 72% in Q1 2014 at Kalsaka/Sega compared to Q1 2013 and total cash costs decreased by 11%. Amara is well-positioned for the remainder of 2014 and I look forward to delivering drilling results from Yaoure in the coming months."
Yaoure, Côte d'Ivoire
Two important milestones were delivered at Yaoure in Q1 2014: the completion of the PEA and the announcement of the placing and open offer, which raised US$30.5 million, primarily for the advancement of Yaoure.
Based upon the updated 6.3 million ounce Mineral Resource[i], the PEA for Yaoure confirmed that it is a compelling gold development project[ii]. The headline results for an 8 Million tonne per annum ("Mtpa") plant tank leach process demonstrated very strong economic returns. Further optimisation work on the pit design showed that a smaller pit, constrained at an US$800 per ounce gold price, results in a 10% higher average grade and 23% shorter mine life. Combined with a 6.5Mtpa plant, this pit design delivers a stronger post-tax IRR of 33% using a gold price of US$1,250 per ounce and a robust NPV of US$613 million using a discount rate of 8%. In addition, the smaller scenario is more resilient at lower gold prices with a post-tax IRR of 25% at a US$1,100 per ounce gold price, a 9% increase on the 8Mtpa scenario. Both scenarios would place Yaoure in the top 12 gold mines in Africa by production, with the 8Mtpa scenario elevating it to the top 10 with production of 325,000 ounces over a 12 year mine life. Total cash costs are among the lowest in Africa (US$594 per ounce in the 6.5Mtpa scenario), based on Amara's peers' total cash costs in 2013.
The net proceeds of the placing and open offer will allow Amara to conduct an in-fill drilling programme at Yaoure in 2014 and deliver an initial FS in Q1 2015. The 2014 Yaoure drilling campaign commenced in early April 2014 and is expected to be undertaken in two phases:
- To target the 'information gaps' within the Mineral Resource area to increase the size of the Inferred resource - Mineral Resource updated expected in Q3 2014
- To upgrade the Inferred resources to the Indicated category to increase the level of confidence in the resource - Mineral Resource update expected in Q4 2014
Baomahun, Sierra Leone
In January 2014 Amara announced the results of the first phase of optimisation work for the Baomahun FS[iii]. This work focused on 'right-sizing' the plant to the deposit to reflect the current market conditions and the outlook for the gold price. Based upon a smaller 1Mtpa scenario, the upfront capital cost is reduced by 40% to US$90 million and the total pre-production capital cost is reduced by 43% to US$143 million compared to the Baomahun FS. In an open pit only scenario, Baomahun's metrics are comparable with other similar gold projects in West Africa, although Baomahun's performance strengthens significantly when an underground component to the project is introduced.
There are three focuses to the on-going optimisation work for Baomahun: expanding in-pit resources through targeted exploration, continuing to undertake low-cost evaluation work on the underground opportunity and further reducing the upfront capital requirement of the project.
Kalsaka/Sega, Burkina Faso
---------------------------------------------------------------------------- Unit Q1 2014 Q4 2013 Change Q1 2013 ---------------------------------------------------------------------------- Gold production Oz 16,263 14,926 9% 9,481 Gold sold Oz 21,888 10,353 111% 8,644 Operating Cash Costs (excl. royalties) US$/oz prod 1,034 1,235 (16%) 1,167 Total Cash Costs (inc. royalties) US$/oz prod 1,082 1,300 (17%) 1,215 Average realised gold price US$/oz sold 1,292 1,281 1% 1,618 EBITDA US$m 3.5 (0.6) +US$4.1m 3.1
As expected, Q1 2014 was a strong quarter for Kalsaka/Sega, with a 9% increase in gold production compared to Q4 2013 (72% increase over Q1 2013) as the high grade material mined at Sega in Q4 2013 was realised in production. However the head grade mined in Q1 2014 was below expectations and accordingly Amara expects production in 2014 to be at the low end of the previous guidance of 60,000-70,000 ounces. Kalsaka/Sega generated an EBITDA of US$3.5 million in Q1 2014, a US$4.1 million increase compared to Q4 2013.
Group Financial Highlights
Income Statement Highlights --------------------------------------------------------------------------- US$000 Q1 2014 Q4 2013 Q1 2013 --------------------------------------------------------------------------- Revenue 28,087 13,274 13,990 Gross profit 106 (5,380) 1,793 EBITDA 1,760 (644) 1,251 Loss before taxation (4,578) (28,212) (3,021) Net loss (4,578) (28,365) (2,969)
Overall the Group generated a modest EBITDA profit in Q1 2014, driven by the improved production at Kalsaka/Sega off-set by the reduced gold price. A high depreciation charge in the period totalling US$9 million lead to an overall reported operating loss of US$4.3 million.
The closing cash and bullion balance of US$7.3 million was augmented during Q2 by the US$30.5 million fundraising (before expenses), ensuring that Amara is fully funded to deliver the initial Yaoure FS in Q1 2015.
For more information please contact:
Amara Mining plc +44 (0)20 7398 1420 John McGloin, Executive Chairman Peter Spivey, Chief Executive Officer Pete Gardner, Finance Director Katharine Sutton, Head of Investor Relations Peel Hunt LLP +44 (0)20 7418 8900 (Nominated Adviser & Joint Broker) Matthew Armitt Ross Allister GMP Securities Europe LLP +44 (0)20 7647 2800 (Joint Broker) Richard Greenfield David Wargo Farm Street Communications +44 (0)7593 340 107 (Media Relations) Simon Robinson
About Amara Mining plc
Amara is a gold developer-producer with assets in West Africa. The Company generates cash flow through its Kalsaka/Sega gold mine in Burkina Faso. Amara is focused on unlocking the value in its development projects. At Yaoure in Côte d'Ivoire, this will be done by increasing the confidence in the existing Mineral Resource and economics at the project as the Company progresses it through to Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun, this will be done by gaining an improved understanding of the exploration upside potential and underground opportunity. With its experience of bringing new mines into production and a project pipeline spanning four countries, Amara aims to further increase its production profile with highly prospective opportunities across all assets.
Non IFRS Measures - EBITDA (Earnings Before Interest, Income Taxes, Depreciation and Amortization), cash cost per ounce and average realised gold price are financial measures used by many investors to compare mining companies on the basis of operating results, asset value and the ability to incur and service debt. EBITDA is used because Amara's net income alone does not give an accurate picture of its cash generating potential. Management believes that EBITDA is an important measure in evaluating the Company's financial performance, ability to fund future capital expenditures and repay any future project financing, and in determining whether to invest in Amara. Similarly, cash cost per ounce, pre-tax cash margin and average realised gold price are measures that are considered key measures by Amara in evaluating the Company's operating performance. However, EBITDA, cash cost per ounce and average realised gold price are not measures of financial performance, nor do they have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Investors are cautioned that EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS as an indicator of Amara's performance or to cash flows from operating, investing and financing activities of liquidity and cash flows. These measures have been described and presented in this document in order to provide shareholders and potential investors with additional information regarding the Company's operational performance, liquidity and its ability generate funds to finance its operations.
Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.
[i] See announcement entitled, 'Six Million Ounce Mineral Resource at Yaoure Gold Project', dated 13 December 2013
[ii] See National Instrument 43-101 technical report entitled, 'Technical Report and Preliminary Economic Assessment for Yaoure Gold Project, Côte d'Ivoire, Amara Mining plc', dated 25 April 2014
[iii] See announcement entitled, 'Results of first phase of Baomahun optimisation work', dated 30 January 2014
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 30, 2015 10:00 AM EST Reads: 286
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 30, 2015 09:00 AM EST Reads: 505
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 30, 2015 08:00 AM EST Reads: 562
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 30, 2015 07:00 AM EST Reads: 466
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 30, 2015 07:00 AM EST Reads: 381
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 30, 2015 06:00 AM EST Reads: 386
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 30, 2015 05:30 AM EST Reads: 493
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 30, 2015 04:00 AM EST Reads: 607
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Nov. 30, 2015 04:00 AM EST Reads: 348
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Nov. 30, 2015 03:45 AM EST Reads: 438
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Nov. 30, 2015 02:00 AM EST Reads: 448
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 30, 2015 02:00 AM EST Reads: 450
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
Nov. 30, 2015 12:00 AM EST Reads: 450
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 29, 2015 02:00 PM EST Reads: 488
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 29, 2015 01:00 PM EST Reads: 359
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 29, 2015 12:45 PM EST Reads: 423
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 29, 2015 12:30 PM EST Reads: 429
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 29, 2015 12:00 PM EST Reads: 532
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 29, 2015 11:45 AM EST Reads: 337
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Nov. 29, 2015 09:45 AM EST Reads: 456