Aurcana Reports Record 1st Quarter Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/24/11 -- Aurcana Corporation ('Aurcana' or the 'Company') (TSX VENTURE: AUN)(OTCQX: AUNFF) is pleased to report its unaudited financial results for the first quarter ended March 31, 2011. The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis dated June 20, 2011 together referred to as the 'Financial Statements', which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.aurcana.com). All figures are in Canadian dollars unless otherwise noted.
The most significant highlights for the quarter ended March 31, 2011 were:
-- 140% increase in net revenues to $10.9 million compared to $4.5 million
for the first quarter of 2010;
-- Earnings from mining operations to $5.4 million compared to $0.7 million
for the first quarter of 2010;
-- Operating cash flow before movements in working capital items, to $4.7
million (2010: deficit of $0.5 million);
-- A total of 127,231 milled tons compared to 79,007 tons for the first
quarter of 2010. Of 127,231 tons, 14% (17,619 tons) were from NI 43-101
measured and indicated; 86% (109,612 tons) were from new discoveries.
-- Increased production from 154,095 sliver ounces for the first quarter of
2010 to 240,275 silver ounces in 2011, an increase of 56%.
La Negra
-- 61% increase in tons milled to 127,231 tons compared to 79,007 tons for
the first quarter of 2010;
-- 46% increase in copper concentrate produced to 2,994 tonnes compared to
2,053 tonnes for the first quarter of 2010;
-- 56% increase in silver concentrate produced to 240,275 ounces compared
to 154,095 ounces for the first quarter of 2010;
-- 70% increase in zinc concentrate produced to 1,582 tonnes compared to
933 tonnes for the first quarter of 2010.
Shafter
-- The Company started construction of the Shafter Silver mine project,
100% owned by the Company, after completing the equity financing on
December 7, 2010. The Shafter feasibility study shows an estimated pay
back of 1.9 years based on $15.53 per ounce of Silver and the
construction is estimated to be completed by May 2012.
-- The Company wishes to advise its Technical Report dated November filed
on SEDAR November 12, 2010 was revised on June 23, 2011 to correct the
presentation of Table 18.2 wherein the table now reflects Measured,
Indicated, Proven and Probable in separate columns with no changes to
the summary totals. The Report may be found on www.sedar.com and the
Company's website www.aurcana.com.
March 31, 2011 Financial Statements key data:
----------------------------------------------------------
----------------------------------------------------------
Total Revenues $10.9M
----------------------------------------------------------
Earnings from mining operations (i) $5.4M
----------------------------------------------------------
Income before taxes $1.6M
----------------------------------------------------------
Net Income after taxes $1.6M
----------------------------------------------------------
Earnings Per Share (EPS) $0.0
----------------------------------------------------------
Tonnes of ore Processed 127,231
----------------------------------------------------------
Tonnes of Zinc concentrate sold 1,364
----------------------------------------------------------
Tonnes Zinc concentrate produced 1,582
----------------------------------------------------------
Tonnes of Copper concentrate sold 3,050
----------------------------------------------------------
Tonnes of Copper concentrate produced 2,994
----------------------------------------------------------
Ounces of Silver sold 218,701
----------------------------------------------------------
Ounces of Silver produced 240,275
----------------------------------------------------------
(i) Including amortization and depletion.
Earnings
The Company had an increase in earnings from mining operations to $5.4 million compared to $0.7 million in Q1 2010. Net income of $0.7 million compared to a net loss of $0.5 million in Q1 2010. Earing per share was $0.00 compared to earnings of $0.00 per share Q1 2010.
Revenue
During the quarter ended March 31, 2011, the Company realized revenues from the sale of 3,050 tonnes of copper concentrate (2010 - 2,065 tonnes), 1,364 tonnes of zinc concentrate (2010 - 874 tonnes) and 218,701 ounces of silver (2010 - 153,790 ounces) for total revenues of $10.9 million (2010 - $4.5 million).
The average price for sales of copper, zinc and silver during the period were Cu - $4.37 (Q1 2010: $3.29) per pound, Ag - $31.95 (Q1 2010: $16.93) per ounce and Zn $1.09 (Q1 2010: $1.04) per pound. Metal prices, were a significant factor in the increased revenue of the Company.
Summary
During Q1 2011 Aurcana continued to build on the advances of its La Negra Mine. Metal concentrate prices continued to improve, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company continued to advance the permitting process at Shafter and initiated development of the Shafter mine. Aurcana continues to focus on its future growth.
To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2010-Dec31-FS.pdf
To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2010-Dec31-MDA.PDF
Corporate
On April 19, 2011, Aurcana commenced trading on the OTC market's prestigious tier, OTCQX International. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
The Company trades in the United States on OTCQX under the symbol 'AUNFF'.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start up production within 12 months producing 3.8 million ounces silver in the first year. It has a NI 43-101 measured and indicated resource of 24.6 million ounces of silver (2,900,000 tons at 8.48 Ag opt) and an inferred resource of 22.8 million ounces of silver (2,167,000 tons at 10.52 Ag opt) using a 4.0 ounce per ton cut off. The 92% owned La Negra silver-lead-zinc-copper mine is on target to increase production to over 2 million ounces Silver Equivalent annually. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
Lenic Rodriguez, President
NR#11-09
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Aurcana Corporation
(604) 331-9333 or Toll Free: (866) 532-9333
(604) 633-9179 (FAX)
Aurcana Corporation
Gary Lindsey
Corporate Relations
(720) 273-6224
gary@stratastargroup.com
www.aurcana.com