|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
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Jan. 20, 2017 10:45 AM EST Reads: 3,687
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Jan. 20, 2017 10:45 AM EST Reads: 6,067
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Jan. 20, 2017 09:45 AM EST Reads: 2,911
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, introduced the technologies required for implementing these idea...
Jan. 20, 2017 08:30 AM EST Reads: 4,737
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Jan. 20, 2017 08:15 AM EST Reads: 4,915
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 20, 2017 08:15 AM EST Reads: 4,704
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, 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 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Jan. 20, 2017 07:15 AM EST Reads: 2,970
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).
Jan. 20, 2017 07:00 AM EST Reads: 9,071
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Jan. 20, 2017 07:00 AM EST Reads: 6,860
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Jan. 20, 2017 03:00 AM EST Reads: 895
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Jan. 20, 2017 02:30 AM EST Reads: 5,032
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Jan. 20, 2017 02:00 AM EST Reads: 6,577
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 ...
Jan. 20, 2017 01:45 AM EST Reads: 4,269
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Jan. 20, 2017 12:45 AM EST Reads: 4,130
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Jan. 20, 2017 12:45 AM EST Reads: 2,858
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jan. 20, 2017 12:00 AM EST Reads: 6,350
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jan. 19, 2017 09:45 PM EST Reads: 6,832
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.
Jan. 19, 2017 09:45 PM EST Reads: 7,723
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Jan. 19, 2017 07:30 PM EST Reads: 4,247
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
Jan. 19, 2017 05:30 PM EST Reads: 3,662