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TVI Pacific Provides First Quarter 2013 Financial and Operational Results

May 14, 2013

TSX: TVI  OTCQX: TVIPF

CALGARY, May 14, 2013 /CNW/ – TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) (TVI or the Company) today announced its unaudited, consolidated
financial and operational results for the quarter ended March 31, 2013.

For a thorough explanation of the points discussed in this news release,
shareholders are encouraged to read the unaudited interim consolidated
financial statements, prepared in accordance with International
Financial Reporting Standards (IFRS), and the management’s discussion
and analysis for the quarters ended March 31, 2013 and March 31, 2012,
and the audited consolidated financial statements for the years ended
December 31, 2012 and 2011.  These documents were filed with certain
securities regulators in Canada, and are available on our web site (www.tvipacific.com or under our profile on SEDAR www.sedar.com).

Q1 2013 Highlights

        --  Net revenue of $10.2 million realized from the mining segment
        --  Net loss of $0.6 million
        --  Earnings before interest, depreciation and accretion of $1.9
            million
        --  Cash balance of $7.6 million at quarter end
        --  Short term debt facilities of $6.9 million (average interest
            rate of 2.00%)
        --  A working capital surplus of $11.3 million

Financial Highlights


                                  Quarter           Quarter            Quarter
                                    ended             ended              ended
                                March 31,         March 31,       December 31,
                                     2013              2012               2012

    I       Gross                   $11.4             $16.9              $24.0
            revenue ($
            million)

    I       Net revenue
            ($ million)             $10.2             $14.4              $20.6

            Total cost
            per Copper
            Pound
            Equivalent
    I       (1)(US$)                $2.26             $3.04              $2.63

    I       Production              $1.79             $1.70              $1.34
            cash cost
            per Copper
            Pound
            Equivalent
            (2)(US$)

    I       Total cash              $1.48             $1.17              $0.69
            cost per
            Copper
            Pound
            Equivalent
            net of
            by-products
            (3)(US$)

    I       Net income
            (loss) ($
            million)               ($0.6)            ($2.3)               $5.0

    I       Basic net
            income
            (loss) per
            share                ($0.001)          ($0.004)             $0.009

    I       Average
            copper
            price
            received
            (US$/lb)                $3.62             $3.85              $3.59

    I       Cash
            balance at
            quarter end
            ($
            millions)                $7.6             $20.4              $16.0

            Letters of
            credit and
            loan
            facilities
            ($
            millions)
    I       (4)                      $6.9             $13.9               $9.9

    I       Working
            capital
            surplus ($
            millions)               $11.3             $12.4              $13.7

    (1)      Includes selling expenses and amortization expenses

    (2)      Excludes selling expenses and amortization expenses

    (3)      Includes selling expenses and excludes amortization expenses

    (4)      Average interest rate of: 2.0% for Q1 2013, 1.93% for Q1 2012
             and 2.0% for Q4 2012

The mining segment generated net revenues of $9.8 million in Q1 2013
from the sale of concentrates, net of treatment, refining and
penalties, and a further $0.4 million from drilling and other services
to third party customers. Revenue generated from the sale of
concentrates comprised one shipment of copper concentrate, as compared
to one completed shipment of copper concentrate and one shipment of
zinc concentrate during the same period in 2012 that generated $14.4
million net revenue.

During Q1 2013, TVI had a net loss of $0.6 million compared to a net
loss of $2.3 million for Q1 2012. The net loss was primarily due to the
following:

        --  Average copper prices in Q1 2013 declined 6% to US$3.62/lb from
            US$3.85/lb in Q1 2012;

        --  No zinc concentrate was shipped in Q1 2013, while Q1 2012
            included one shipment that contributed gross revenues of
            $3,348,776.

But the net loss was reduced by:

        --  Q1 2013 accrual of net smelter return (NSR) payments from the
            Rapu Rapu Group of US $0.5 million, which were subsequently
            collected in April 2013 together with outstanding Q4 2012 NSR
            payments.

        --  Lower depreciation, depletion and accretion expense for the
            period ended March 31, 2013, as a function of lower throughput
            and volume of metals produced within the period as well as a
            revision in estimated residual value of plant and equipment.
            Depreciation, depletion and accretion expense for the period
            ended March 31, 2013 was equal to approximately $2.4 million,
            as compared to $4.3 million recorded during the same period in
            2012.

Operational Highlights


                               Quarter ended              Quarter ended             Quarter ended
                              March 31, 2013             March 31, 2012              December 31,
                                                                                             2012

    Average tonnes                      2,483                     2,744                     2,765
    processed per
    day

    Ore copper                           0.81                      0.85                      0.88
    grade (%)

    Concentrate                         17.81                     18.19                     17.91
    copper grade
    (%)

    Concentrate                         11.33                      7.70                     10.51
    gold grade
    (g/t)

    Concentrate                        365.11                    377.91                    402.57
    silver grade
    (g/t)

    Concentrate                         37.01                     48.88                     46.77
    zinc grade
    (g/t)

    Copper pound                    5,338,328                 6,527,072                 7,638,715
    equivalent
    produced

           Copper                   2,872,511                 3,356,555                 3,923,719
           produced
           (lbs)

           Gold                         2,875                     2,061                     3,539
           produced
           (oz)

           Silver                      92,626                   123,917                   143,969
           produced
           (oz)

           Zinc                     1,423,165                 4,841,896                 2,790,187
           produced
           (lbs)

In Q1 2013 average throughput decreased to 2,483 from 2,765 dry metric
tonnes (dmt) per day in Q4 2012.  The drop in throughput was mainly due
to the scheduled plant shutdown to replace the power generating units. 
The feed grade was however increased to be higher than the plan to
offset the impact of the low mill throughput.

During Q1 2013, mill throughput averaged 2,483 dry metric tonnes per
day, totaling 223,514 tonnes. As projected, only a portion of original
ore reserves was consumed due to the additional material found and
mined during the period. This material, consisting of banded sulphides
with low-grade chlorite schists, was used as a blending material to
optimize mill recoveries and was located both inside and outside the
pit shell and not included in the original ore reserves. Detailed
metallurgical and ore reserve studies will continue to be undertaken to
determine future processing scenarios and their potential impacts on
the ore reserves and mine life.

Based on average daily mill throughput going forward of 2,600 tonnes per
day, open pit mining is estimated to be completed by the fourth quarter
of this year while mill processing and concentrate shipments will
continue into the first quarter of 2014 (subject to change in
throughput to meet shipping commitments).

In Q1 2013, TVI completed one copper concentrate shipment (34(th)) for a total of 5,089 dmt. For the first quarter of 2013 no shipment of
zinc concentrate was made. The next shipment of zinc concentrate is
planned for the middle of 2013.

Approximately 5,000 dry metric tonne copper concentrate shipments are
expected to occur approximately every 8 weeks, while zinc concentrate
shipments are expected approximately every 4 to 6 months.  To date, 35
copper concentrate shipments of approximately 5,000 dry metric tonnes
each and five zinc concentrate shipments have been completed, totaling
20,287 dry metric tonnes. The 35th copper shipment completed loading on
April 26, 2013.  TVI expects to complete a further four copper
concentrate shipments and two zinc concentrate shipments through 2013.

Cash Position

As of March 31, 2013, TVI had short term debt facilities totaling $6.9
million at an interest rate averaging 2.0%.  Cash on hand was $7.6
million at the same date.

For further information on TVI’s operations please refer to the
Management’s Discussion and Analysis available on TVI’s website www.tvipacific.com or under our profile on SEDAR (www.sedar.com).

About TVI Pacific Inc.

TVI Pacific Inc. is a publicly-traded Canadian company that is focused
on the production, development, exploration and acquisition of resource
projects in the Philippines. TVI produces copper and zinc concentrates
from its Canatuan mine, is in pre-development stage at its Balabag gold
and silver project.  TVI also has an interest in an offshore Philippine
oil property.

The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this news release constitute forward-looking
information. Forward-looking statements are often, but not always,
identified by the use of words such as “seek”, “anticipate”, “plan”,
“continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”,
“might”, “should”, “believe”, “schedule” and similar expressions.
Forward-looking statements are based upon the opinions and expectations
of TVI as at the effective date of such statements and, in certain
cases, information received from or disseminated by third parties.
Although the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions and
that information received from or disseminated by third parties is
reliable, it can give no assurance that those expectations will prove
to have been correct. Forward-looking statements are subject to certain
risks and uncertainties (known and unknown) that could cause actual
outcomes to differ materially from those anticipated or implied. These
factors include, but are not limited to, such things as general
economic conditions in Canada, the United States, the Philippines and
elsewhere; volatility of prices for precious metals, base metals, oil
and gas; commodity supply and demand; fluctuations in currency and
interest rates; inherent risks associated with the exploration and
development of mining properties; inherent risks associated with the
exploration of oil and gas properties; ultimate recoverability of
reserves; production, timing, results and costs of exploration and
development activities; political or civil unrest; availability of
financial resources or third-party financing; new laws (domestic or
foreign); changes in administrative practices; changes in exploration
plans or budgets; and availability of personnel and equipment
(including mechanical problems). Accordingly, readers should not place
undue reliance upon the forward-looking statements contained in this
news release and such forward-looking statements should not be
interpreted or regarded as guarantees of future outcomes.

Forward-looking statements regarding forward production costs and
shipping and refining costs are based are based on current and previous
mineral reserve and resource estimates, current mining and processing
activities, prior experiences of management with mining and processing
activities, the current development and operating plan, efficiency and
effectiveness of the sulphide plant, and the Company’s overall plans,
budget and strategy for Canatuan (which are all subject to change).
Forward-looking statements regarding the remaining mine life of the
Canatuan deposit are based on current and previous mineral reserve and
resource estimates, current mining and processing activities, prior
experiences of management with mining and processing activities, the
current development and operating plan, efficiency and effectiveness of
the sulphide plant, and the Company’s overall plans, budget and
strategy for Canatuan (which are all subject to change).
Forward-looking statements respecting the copper and zinc concentrate
shipping schedules are based on the Company’s previous experience with
concentrate shipments, current mining and processing activities,
current and previous mineral reserve and resource estimates,
discussions to date with the off-take partner, efficiency and
effectiveness of the sulphide plant, and the Company’s overall plans,
budget and strategy for Canatuan (which are all subject to change). 
Forward-looking statements regarding the nature and timing of
exploration at the Greater Canatuan Tenement Area (including EXPA 61,
Malusok and SE Malusok), Tamarok and the Company’s other tenements in
the Philippines are based upon current and previous exploration
activities, management’s experience with other exploration programs
undertaken in the Philippines and elsewhere, and the Company’s overall
plans, budget and strategy (which are all subject to change). In
certain cases, the timing of exploration activities in the Philippines
is dependent upon the receipt of free prior informed consent from
indigenous communities and regulatory approvals from the government of
the Philippines. Forward-looking statements regarding expectations that
the Company will be able to find additional ore in the Greater Canatuan
Tenement Area (including EXPA 61, Malusok and SE Malusok) are based
upon current and previous exploration activities, management’s
experience with other exploration programs undertaken in the
Philippines and elsewhere, management’s current and previous experience
with mining and processing activities at Canatuan, and the Company’s
overall plans, budget and strategy (which are all subject to change).
Forward-looking statements regarding the timing of an updated NI 43-101
report and optimized feasibility study for Balabag are based upon
current and previous exploration activities, advice received from
third-parties, and the Company’s overall plans, budget and strategy for
Balabag (which are all subject to change). Forward-looking statements
regarding the resumption of drilling activities at Tamarok are based on
the exploration carried out to date and the Company’s overall plans,
budget and strategy for Tamarok (which is subject to change). 
Forward-looking statements regarding the arrival date of additional
drilling rigs in the Philippines are based on discussions with third
parties. 

The forward-looking statements of the Company contained in this news
release are expressly qualified, in their entirety, by this cautionary
statement. Various risks to which TVI and its affiliates are exposed in
the conduct of their business are described in detail in the Company’s
Annual Information Form for the year ended December 31, 2012, which was
filed on SEDAR on March 19, 2013, and is available at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake
any obligation to publicly revise the forward-looking statements
included in this news release to reflect subsequent events or
circumstances, except as required by law.

 

SOURCE TVI Pacific Inc.


Source: PR Newswire