Rusoro Mining Reports its 2009 Financial Results
28 Abril 2010 - 7:02AM
Marketwired Canada
Rusoro Mining Ltd. ("Rusoro" or the "Company") (TSX VENTURE:RML) is pleased to
report its financial results for the year ended December 31, 2009. The Company's
audited consolidated financial statements and management's discussion and
analysis ("MD&A") for the year ended December 31, 2009 have been filed on SEDAR
(www.sedar.com).
All amounts set out in the Company's consolidated financial statements are
audited and in United States dollars, unless otherwise stated.
The following is a synopsis of the year ended December 31, 2009 and related
information. For detailed information regarding Rusoro's 2009 year-end, please
refer to the audited consolidated financial statements and related MD&A which
have been filed on SEDAR at www.sedar.com and can be found on the Company's
website at www.rusoro.com.
The Company's highlights for 2009 were:
-- Cash cost per ounce sold of $338 (2008: $649).
-- Record gold production of 150,460 ounces of gold (2008: 99,663 ounces).
-- Completed a scoping study to evaluate the potential for gold production
expansion of the Choco 10 gold mine ("the Choco Mine") operation to a
production rate of up to 20,000 tonnes per day by sourcing gold
resources and reserves from the Choco Mine and the near-by Increible 6
deposit. The scoping study results were reported in the news release
dated May 19, 2009, which is available on SEDAR at www.sedar.com The
data and conclusions of the scoping study form the basis for a
feasibility study which was initiated during 2009.
-- Initiated a pre-feasibility study at the San Rafael and El Placer
mineral titles ("SREP") which is on schedule for completion in Q2 2010.
-- Advanced construction of the Alvarez underground ramp which will provide
access to the main mineralized areas in the contiguous SREP concessions.
Subsequent to December 31, 2009, the Company completed construction of
the Alvarez underground ramp and has now intercepted the main
mineralized zone and begun test sampling.
-- Purchased $20 million of the principal amount and related accrued
interest of the convertible loan for $17.8 million. The remaining
principal amount of $60 million is due in June 2010.
-- As at December 31, 2009 gold inventories comprise 56,076 ounces of
finished gold (dore form), 3,068 ounces of gold in process and 19,435
ounces of gold in stockpile.
Financial result for 2009:
The Company's revenue for 2009 was $72.4 million from 104,036 ounces of gold
sold at a realized price of $696 per ounce (2008: $70.3 million from 97,582
ounces sold at $720 per ounce).
Net loss for the year was $16.3 million (2008: $72.2 million). Main contributors
to the loss were $9.4 million general and administrative (2008: $19.7 million),
$6.8 million stock-based compensation (2008: $22.8 million), $13.0 million in
interest on convertible loan (2008: $7.1 million) and $11.0 million impairment
of mineral properties (2008: $19.3 million). The Company recognized a $0.9
million income tax recovery (2008: $11.6 million) and income from mining
operations of $22.8 million (2008: loss of $11.2 million).
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12 Months Ended 12 Months Ended
December 31, 2009 December 31, 2008
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Choco Isidora Total Choco Isidora Total
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Ore tonnes
mined
('000 t) 2,374 31 2,405 2,363 0.3 2,363
Ore tonnes
milled
('000 t) 2,056 35 2,091 2,394 0.7 2,395
Average grade
(g/t) 1.97 24.63 2.35 1.44 28.00 1.45
Average
recovery
rate (%) 90% 90% 90% 87% 90% 87%
Gold produced
(ounces) (1) 125,714 24,746 150,460 99,163 500 99,663
Total mining
operating
expenses
$(000) $28,246 $11,144 $39,390 $63,779 $ 117 $63,896
- asset
retirement
obligations
accretion
$(000) ($ 314) ($ 266) ($ 580) ($ 537) - ($ 537)
- fair value
differential
of inventory
acquired
$(000)(2) - ($3,603) ($ 3,603) - - -
---------------------------------------------------------
Total cash costs
$(000)(3) $27,932 $ 7,275 $35,207 $63,242 $ 117 $63,359
---------------------------------------------------------
---------------------------------------------------------
Total cash
costs per
ounce sold
($)(4) $ 328 $ 383 $ 338 $ 651 $ 254 $ 649
---------------------------------------------------------
---------------------------------------------------------
Gold sold to
the Central
Bank of
Venezuela
("CBV")
(ounces) - 1,242 1,242 - - -
Gold sold to
domestic
private
buyers
(ounces) 85,057 17,737 102,794 97,122 460 97,582
---------------------------------------------------------
Total gold
sold
(ounces) 85,057 18,979 104,036 97,122 460 97,582
---------------------------------------------------------
---------------------------------------------------------
Average spot gold
price ($) n/a n/a $ 972 n/a n/a $ 872
Average realized
gold price for
gold sold to
the CBV ($)(5) - $ 397 $ 397 n/a - -
Average realized
gold price for
gold sold to
domestic
private buyers
($)(5) $ 698 $ 703 $ 699 $ 720 $ 734 $ 720
Average realized
gold price
($)(5) $ 698 $ 683 $ 696 $ 720 $ 734 $ 720
Official exchange
rate (BsF to US
Dollar) n/a n/a 2.15 n/a n/a 2.15
Average implicit
exchange rate
(BsF to
US Dollar) n/a n/a 6.12 n/a n/a 4.37
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(1) Gold production of 150,460 ounces was less than the previous guidance given
of 170,000 ounces due to factors described in the Choco Mine and Isidora Mine
sections of the MD&A.
(2) In calculating cash costs per ounce sold the Company has excluded the
difference between the book value and fair value of inventory acquired at the
date of acquisition of the 50% interest in the Isidora Mine.
(3) Total cash costs used in the calculation of cash costs per ounce is
calculated as mining operating expenses from the consolidated statement of
operations excluding accretion expense related to the asset retirement
obligations and expense of the fair value differential between the book value
and fair value of inventory acquired at the date of acquisition of the 50%
interest in the Isidora Mine.
(4) Cash costs per ounce sold is a non Canadian generally accepted accounting
principles ('GAAP") measure. Total cash costs per ounce sold as shown above is
calculated by dividing the total cash costs by the gold ounces sold during the
period. Cash costs per ounce sold includes all expenditures related to the mine
such as mining, processing, administration, royalties and production taxes but
excludes reclamation, capital and exploration expenditures, adjustment to
foreign currency conversion rate and the fair value differential between the
book value and fair value of inventory acquired at the date of acquisition of
the 50% interest in the Isidora Mine.
(5) Average realized gold price for gold sold to the CBV was impacted by payment
being received in BsF at the official exchange rate and the timing of gold
sales. Average realized gold price for sales to private buyers representing the
domestic processing industry is impacted by a discount to the spot price of gold
and the impact of payment received in BsF at the bid Implicit Rate (See
"Venezuela Currency Exchange and Gold Sales" section of the MD&A for definition
of Implicit Rate) and timing of gold sales. The impact of these items are
discussed in more detail in the "Venezuela Currency Exchange and Gold Sales"
section of the MD&A.
Outlook
During 2010, the Company expects to produce 142,000 ounces of gold from the
Choco Mine and its 50% interest in the Isidora Mine. Total cash costs per ounce
sold for 2010 are expected to be $613 per ounce as discussed in the Outlook
section of the MD&A. Cash costs per ounce sold for 2010 are expected to increase
from 2009 due to factors described in the Outlook section of the MD&A.
Cautionary Non-GAAP Measures
Total cash costs per ounce sold is a non-GAAP measure. The Company believes
that, in addition to conventional measures, prepared in accordance with GAAP,
certain investors use the cash costs per ounce data to evaluate the Company's
performance and ability to generate cash flow. Accordingly, it is intended to
provide additional information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP as it
does not have any standardized meaning prescribed by GAAP. Data used in the
calculation of total cash costs per ounce may not conform to other similarly
titled measures provided by other precious metals companies.
ON BEHALF OF THE BOARD
George Salamis, President
Forward-looking statements: This document contains statements about expected or
anticipated future events and financial results that are forward-looking in
nature and as a result, are subject to certain risks and uncertainties, such as
general economic, market and business conditions, the regulatory process and
actions, technical issues, new legislation, competitive and general economic
factors and conditions, the uncertainties resulting from potential delays or
changes in plans, the occurrence of unexpected events, and the Company's
capability to execute and implement its future plans. Actual results may differ
materially from those projected by management. For such statements, we claim the
safe harbour for forward-looking statements within the meaning of the Private
Securities Legislation Reform Act of 1995.
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