International Minerals Corp.

  • WKN: 893760
  • ISIN: CA4598751002
  • Land: USA

Nachricht vom 16.05.2012 | 00:03

International Minerals Reports $6.8 Million in Pre-Tax Income for Third Fiscal Quarter Ending March 31, 2012. Signs Agreement for Sale of Ruby Hill Royalty for $38 Million


International Minerals Corp.  / Key word(s): Quarter Results

16.05.2012 00:03

Release of an ad hoc announcement pursuant to Art. 53 KR
---------------------------------------------------------------------------

NEWS RELEASE 

International Minerals Reports $6.8 Million in Pre-Tax Income 
For Third Fiscal Quarter Ending March 31, 2012.
Signs Agreement for Sale of Ruby Hill Royalty for $38 Million

Scottsdale, Arizona, May 15, 2012: International Minerals Corporation
(Toronto and Swiss stock exchanges: 'IMZ', the 'Company') reports its
financial results for the third fiscal quarter ended March 31, 2012 (the
'Current Quarter'). All amounts in this news release are reported in U.S.
dollars.

Current Quarter highlights include $6.8 million in consolidated pre-tax
income and $6.2 million in consolidated net and comprehensive income after
tax ($0.05 per share), including net equity income of $10.9 million from
the Company's 40% interest (Hochschild Mining 60%) in the Pallancata silver
mine in Peru ('Pallancata').

For the nine-month period ended March 31, 2012 (the 'Current Nine Month
Period'), the Company reported consolidated pre-tax income of $34.0 million
and consolidated net and comprehensive income after tax of $32.5 million
($0.27 per share).

Subsequent to the end of the Current Quarter, the Company has entered into
a non-binding letter agreement with an arm's length third party to sell its
3% net smelter return royalty on production from Barrick Gold Corporation's
Ruby Hill gold mine in Nevada (the 'Ruby Hill Royalty') for cash proceeds
of $38.0 million. The commercial terms of this transaction have been
approved in principle by the respective Boards of both companies subject to
completion of legal due diligence, regulatory approvals and finalization of
a purchase and sale agreement. Closing of the transaction is expected
before the end of May 2012. The Company acquired the Ruby Hill Royalty as
part of the acquisition of Metallic Ventures Gold Inc. in February 2010,
which also included the Goldfield and Converse gold projects in Nevada.

Subsequent to the end of the Current Quarter, the Company received a $12.0
million cash distribution from Minera Suyamarca S.A.C. (which owns
Pallancata), representing the Company's 40% share of a the total cash
distribution of $30 million from Pallancata for the first calendar quarter
of 2012.

Other notable highlights for the Current Quarter include the following
project updates announced in news releases: (a) on January 11, 2012, the
positive results of an independent feasibility study for the Inmaculada
gold-silver development project in Peru; (b) on March 20, 2012, positive
results of metallurgical test work and additional drilling results at the
Goldfield gold project in Nevada, together with the progress of the
feasibility study scheduled to be completed this summer for a proposed
open-pit heap leach gold operation; and (c) on April 20, 2012, updated
mineral reserves and resource estimates for the Pallancata Mine.

Highlights for the Three-Month Period Ended March 31, 2012:
During the Current Quarter, the Company achieved the following significant
results:

* Consolidated pre-tax income of $6.8 million compared to $13.1 million for
the three months ended March 31, 2011 (the 'Prior Year's Quarter').

Income for the Prior Year's Quarter included higher earnings from
Pallancata primarily because of higher silver and gold production, a higher
gold by-product credit (which reduced operating costs), lower mine-site
operating costs and lower Peruvian production royalties and taxes. See more
detailed information below under 'Pallancata Mine'.

* Consolidated net and comprehensive income after tax of $6.2 million (or
$0.05 per share) compared to $13.1 million (or $0.11 per share) for the
Prior Year's Quarter.

In the Current Quarter the Company recognized $656,000 of withholding tax
expense while in the Prior Year's Quarter zero income/withholding tax
expense was recognized.
 
* Cash and equivalents at March 31, 2011 decreased to $83.9 million from
$86.1 million at fiscal year end June 30, 2011.

The decrease in cash and equivalents is primarily a function of the
Company's expenditures on its exploration and development activities at its
two major gold projects in Nevada (Goldfield and Converse) offset by cash
distributions from Suyamarca.

* Pallancata Mine:

Net equity income (Company's 40% share) of $10.9 million compared to net
equity income of $16.6 million for the Prior Year's Quarter.

On a 100%-basis produced approximately 1.8 million ounces of silver and
5,612 ounces of gold compared to 2.0 million ounces of silver and 7,780
ounces of gold in the Prior Year's Quarter.

The Company's 40% share of production was approximately 700,000 ounces of
silver and 2,245 ounces of gold compared to 800,000 ounces of silver and
3,112 ounces of gold for the Prior Year's Quarter.

The decrease in gold and silver production for the Current Quarter compared
to the Prior Year's Quarter was due to a decrease in the grades of both
silver and gold processed due primarily to (i) the fact that the higher
metal prices prevailing during the most recently completed quarter has
allowed lower grade material to be mined profitably at Pallancata and (ii)
operational scheduling constraints related to mine development and backfill
placement.
 
Direct site costs for the Current Quarter at the Pallancata Mine were
approximately $5.34 per ounce of silver produced (after gold by-product
credit) and total cash costs (as defined by the Gold Institute) were $9.48
per ounce silver (after gold by-product credit). The Prior Year's Quarter
direct site costs and total cash costs were $2.68 and $5.96 per ounce of
silver produced, respectively (after the gold by-product credit).

* The increase in production costs per ounce of silver after gold
by-product credit for the Current Quarter is caused primarily by (a) lower
silver and gold production, ,(b) lower gold by-product credit, (c)  an
increase in mining costs associated with the preparation of stopes
exploiting the narrower veins, and (d) increased Peruvian mining taxes
(under the newly-enacted Peruvian law in late 2011, which replaced the
existing royalty schedule with an operating profit-based tax increase), and
(d) weakening of the U.S. dollar against the Peruvian currency.

* Gross royalty revenue received by the Company from its 3% net smelter
return royalty from the Barrick Gold's Ruby Hill gold mine in Nevada was
$1.1 million (net royalty income was $0.7 million) compared to gross
royalty revenue of $1.5 million (net royalty income of $0.3 million) for
the Prior Year's Quarter.

* At March 31, 2012, working capital remained robust at $57.4 million
compared to working capital of $52.4 million at fiscal year end June 30,
2011.

Other Financial Information for the Three-Month Period Ended March 31,
2012:

* Total expenses were $3.3 million compared to $2.6 million for the Prior
Year's Quarter. The increase in costs in the Current Quarter was mostly due
to an increase in general exploration spending and an increase in salary
and benefits expense due to additional salary costs and an increase in
staff support. In addition, administrative costs in Peru were primarily
charged to operations as opposed to being capitalized to resource
properties as in prior quarters.

* Other items reduced income by $1.4 million for the Current Quarter
compared to a reduction in income of $1.2 million in the Prior Year's
Quarter, due mainly to foreign exchange losses of $1.5 million) which
resulted from the strengthening of the Canadian dollar against the U.S.
dollar. Such foreign exchange changes can significantly impact the reported
carrying value of the Company's Canadian-dollar denominated convertible
debentures.
 
* The Company recognized a withholding tax expense of $656,000 for Peruvian
withholding tax (4.1%) on a cash dividend received by the Company from its
Peruvian subsidiary. In the Prior Year's Quarter no income tax withholding
expense was reported.

* At March 31, 2012, the Company's deferred income tax liability was $8.0
million, which represents the net deferred tax liability recorded on the
January 2010 acquisition of Metallic Ventures. This tax liability is
expected to be a non-cash item and will be amortized at such time as
operations commence at the Goldfield or Converse properties or it will be
expensed if they are both sold or abandoned.

The Company accounts for its 40% interest in Minera Suyamarca S.A.C. (which
owns the Pallancata Mine and also the Inmaculada gold-silver development
property) on an equity accounting basis.

Financial Results for the Nine-Month Period Ended March 31, 2012:

      During the Current Nine-Month Period, the Company achieved the
following significant results:

* The Company reported pre-tax consolidated income of $34.0 million
compared to $39.2 million for the nine-month period ended March 31, 2011
(the 'Previous Nine-Month Period').

* Consolidated net and comprehensive income after tax was $32.5 million
($0.27 per share) compared to $39.2 million ($0.33 per share) for the
Previous Nine Month Period.

The decrease in net income for the Current Nine-Month Period was primarily
due to a decrease in the equity income from Pallancata and withholding
taxes in Peru on dividends received by the Company from its Peruvian
subsidiary of $1.5 million ($nil in the same period last year). Also during
the Previous Nine-Month Period, the Company reported a non-recurring gain
of $2.4 million from the sale of an 11% interest in the Inmaculada
gold-silver property to Hochschild.

* Consolidated cash flow from operating activities was $27.6 million
compared to $24.1 million for the Previous Nine-Month Period, with the
decrease due to a timing difference in cash distributions from Pallancata
for the Current Nine-Month Period.

* Net equity income from Pallancata was $38.8 million compared to $42.7
million for the Previous Nine-Month Period. This decrease was largely a
function of lower gold and silver revenue from Pallancata due to lower gold
and silver production and an increase in Peruvian mining taxes under a
newly-enacted Peruvian law in late 2011, which replaced the existing
royalty schedule with an operating profit-based tax increase.

* Net royalty income from the Ruby Hill mine was $2.2 million, compared to
royalty income of $1.9 million for the Previous Nine-Month Period.

Operating Statistics for the Pallancata Mine (100% Project Basis). 

The table below reports key operating and cost statistics for Pallancata
for the fiscal quarters ended March 31, 2012 and 2011, respectively, and
for the calendar years ended December 31, 2011 and 2010, respectively.
Results for the quarter ended December 31, 2011 are also included for
comparison purposes.

Quarter Ended 3/31/2012 Quarter Ended 3/31/2011 Quarter Ended 12/31/2011
Year Ended 12/31/2011 Year Ended 12/31/2010
Ore mined (mt) 221,556 222,746 291,607 1,039,674 1,090,948
Ore processed (mt) 257,339 242,061 293,060 1,070,467 1,071,617
Head grade- Ag (g/t) 263 303 293 301 344
Head grade-Au (g/t) 0.99 1.31 1.27 1.33 1.40
Concentrate produced (mt) 1,745 1,908 2,363 8,608 9,541
Silver production (oz) 1,780,122 2,017,735 2,288,930 8,767,394 10,135,483
Gold production (oz) 5,612 7,780 8,304 33,881 35,849
Silver sold ( ozs) 1,826,000 2,327,800 2,636,200 9,063,800 9,998,000
Gold sold (ozs) 5,500 8,630 9,315 33,900 32,600
IMZ direct site costs (US$) per oz
(net of gold by-product credit) 5.34 2.68 2.35 2.20 222
IMZ  total cash costs (US$) per oz
(net of gold by-product credit) 9.48 5.96 6.26 6.38 5.47


Notes:
1. The reported head grades for silver and gold are based on the overall
metallurgical balance for the process plant.
2. The difference between 'production' and 'sold' metal ounces relates to
in-process concentrate. Silver sales have been rounded.
3. Silver and gold ounces sold are reported as gross ounces. 
4. Direct site costs per ounce silver and total cash costs per ounce silver
reflect a 'mined ore inventory adjustment'. The Company believes that this
calculation more accurately matches costs with ounces of production (Also
see notes 5 and 6 below).
5. Direct site costs per ounce silver comprise direct mining costs, mined
ore inventory adjustment, toll processing costs and mine general and
administrative costs. The cost per ounce is net of gold by-product credit.
6. Total cash costs, using the Gold Institute definition, comprise: mine
operating costs, mined ore inventory adjustment, toll processing costs,
mine general and administrative costs, Hochschild management fee,
concentrate transportation and smelting costs, local and regional taxes and
the government royalty. The cost per ounce is net of gold by-product
credit.
7. mt = metric tonnes; g/t - grams per metric tonne; oz = troy ounces 

Company Outlook

Through calendar year end December 31, 2012, the Company's exploration and
development efforts will be focused on:

* At the 40%-owned Pallancata silver mine in Peru: 

- Working with Hochschild to continue production at the 3,000 tpd mining
rate to produce approximately 8.0 million ounces of silver and 34,000
ounces of gold in calendar year 2012 (the Company's estimate on a 100%
project basis).
 
- Increasing mineral resources and reserves to extend the existing mine
life (approximately 3.5 years based on current reserves as of December 31,
2011).

* At the 40%-owned Inmaculada gold-silver project, also in Peru:

- Working with Hochschild to continue with mine development, permitting and
construction with production targeted to commence prior to the end of
calendar year 2013.

- Continuing with an aggressive exploration program in order to expand
reserves and resources.

* At the 100%-owned Goldfield gold project in Nevada: completing a
feasibility study in the summer of 2012, with the goal of potential
production in calendar 2015.

* At the 100%-owned Converse gold project, also in Nevada: commencing a
feasibility study in the summer of 2012.

* At the 100%-owned Rio Blanco gold-silver project in Ecuador: continuing
discussions with the Ecuadorian government with respect to the negotiation
for a production contract and also to evaluate other options for maximizing
shareholder value for the project.
 
* Further reviewing the technical aspects of the approximately 60%-owned
Gaby gold project, also in Ecuador, and evaluate other options for
maximizing shareholder value for the project.

* Continuing to seek opportunities in precious metal properties in low
political risk countries in the Americas, where the Company believes it can
increase the value of such properties using its exploration, development,
financing and administrative expertise to enhance value.


Hochschild Mining plc does not accept any responsibility for the adequacy
or inadequacy of the disclosure made in this news release and any such
responsibility is hereby disclaimed in all respects.


For additional information, contact:

In North America 
Paul Durham, VP Corporate Relations 
Tel: +1 480 483 9932 

In Europe 
Oliver Holzer, Marketing Consultant
+41 44 853 00 47

Or email us at: IR@intlminerals.com                              
Internet Site: http://www.intlminerals.com       

To view the Company's financial statements and MD&A, please click the
following link:
http://www.intlminerals.com/financialreports.php


Cautionary Statement:

The Gold Institute calculation of Direct Site Costs and Total Cash Costs
are non-IFRS financial measures, which Company management believes are
useful in measuring operational performance. Some of the statements
contained in this release are 'forward-looking statements' within the
meaning of Canadian securities law requirements. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause our actual results, performance or achievements to differ
materially from the anticipated results, performance or achievements
expressed or implied by such forward-looking statements. Forward-looking
statements in this release include statements regarding production
expectations, drilling and development programs on the Company's projects,
timing of completion of economic studies and the timing of commencement of
construction and production and, obtaining of required environmental and
production permits. Factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties such
as: risks relating to obtaining mining and environmental  permits; mining
and development risks; financing risks; risk of commodity price
fluctuations; political and regulatory risks; risks related to the new
mining law in Ecuador, and other risks and uncertainties detailed in the
Company's Annual Information Form for the year ended June 30, 2011, which
is available at www.sedar.com under the Company's name. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.


16.05.2012 News transmitted by EquityStory AG. 
The issuer is responsible for the contents of the release.

EquityStory publishes regulatory releases, media releases on the capital 
market and press releases.
The EquityStory Group distributes authentic and real-time financial news 
for over 1'300 listed companies. 
The Swiss news archive can be found at www.equitystory.ch/news

---------------------------------------------------------------------------
 
Language:               English
Company:                International Minerals Corp.
                        7950 East Acoma Street
                        AZ 85260 Scottdale
                        United States
Phone:                  001 480 483 9932
Fax:                    001 480 483 9926
E-mail:                 IR@intlminerals.com
Internet:               www.intlminerals.com
ISIN:                   CA4598751002
Swiss Security Number:  893760
Listed:                 Freiverkehr in Berlin, München; Open Market in
                        Frankfurt; Toronto, SIX
 
End of Announcement                             EquityStory News-Service
 
---------------------------------------------------------------------------

Interview im Fokus

STRATEC: „Weitere Abschlüsse in 2014“

Erwartungen übertroffen: Mit einem Umsatzplus von 14,9 % und einer bereinigten EBIT-Marge von 16,3 % lag STRATEC Biomedical im ersten Halbjahr über Plan. Und die Pipeline des TecDAX-Konzerns untermauert die ehrgeizigen Wachstumsziele. Neben neuen Produktlaunches stehen bedeutende Vertragsabschlüsse bevor, wie Vorstandschef Marcus Wolfinger im Interview mit financial.de verrät.

GBC-Fokusbox

CytoTools vor Einführung von DermaPro

Die Markteinführung des Hauptproduktes DermaPro steht bei der CytoTools AG kurz bevor. Wir rechnen bereits 2014 mit den ersten Produktionserlösen und 2015 mit den ersten Vermarktungserlösen. Zusätzliche Marktpotenziale werden dabei durch die Ausweitung auf weitere Indikationsgebiete erschlossen. Bei einem fairen Wert je Aktie von 73,30 € lautet unser Rating KAUFEN.

Aktueller Webcast

comdirect bank AG

Business Development in the first six months of 2014

24. Juli 2014

Aktuelle Research-Studie

Kibaran Resources Limited

Original-Research: Kibaran Resources Limited (von Kibaran Resources Limited): spekulativer Kauf

28. Juli 2014