Welcome!

.NET Authors: Srinivasan Sundara Rajan, Sergio Varga, Adine Deford, David Fletcher, Pat Romanski

News Feed Item

Amara Mining plc: 1st Quarter Results

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").

HIGHLIGHTS

  • 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."

OPERATIONAL REVIEW

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

Production Highlights

----------------------------------------------------------------------------
                                 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

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 BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...