Petaquilla Minerals Ltd. Reports $5 Million Net Income and $9.9 Million Cash Flow for 1st Quarter Fiscal 2012
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/15/11 -- For its first quarter of fiscal 2012, Petaquilla Minerals Ltd. (TSX: PTQ)(OTCBB: PTQMF)(FRANKFURT: P7Z) ('Petaquilla' or the 'Company') announces a net income of US$5.0 million, representing an improvement of US$10.7 million compared to the same period of fiscal 2011. This improvement was mainly due to an increase of 68% in gold poured combined with higher gold prices and a reduction of 25% in cash cost per ounce sold.
Gold poured during the first quarter of fiscal 2012 has confirmed an upward trend totaling 18,014 ounces, an increase of 8% compared to the previous quarter and 68% higher than production obtained during the same period of fiscal 2011. Actual gold mined equaled 33,203 ounces, contributing to reach 43,213 stockpiled gold ounces as part of the Company's plans to increase future production at its Molejon gold mine.
Gold sold during the quarter increased by 43% compared to the first quarter of fiscal 2011 and generated revenues of US$26.2 million, an increase of 78% compared to the aforementioned period. Cash cost at US$554 per ounce of gold sold was the lowest cash cost per ounce of gold sold recorded during the last five quarters of operation. As a consequence, operating profit of US$9.8 million for the first quarter of fiscal 2012 reflects an increase of 436% as compared to the same period of fiscal 2011.
Cash flow from operations was positive at US$9.9 million, representing an increase of 340% compared to cash flow generated during the first quarter of fiscal 2011. Positive cash flows are applied mainly to funding (a) Molejon production capacity expansion, in order to increase gold production to 110,000 ounces in fiscal 2012; (b) Lomero Poyatos exploration and development projects; and (c) Banjas experimental mining activities.
An on/off leach pad with a capacity of 40,000 tonnes of ore was commissioned during the first quarter of fiscal 2012. At the same time, the Company commenced construction of a second leach pad with a capacity of 300,000 tonnes of ore. The Company estimates that the combined ore on the two leach pads will contain approximately 17,000 gold ounces by the end of the third quarter of fiscal 2012 with a planned recovery rate of 70%. Additionally, the installations of a third drum scrubber and a new horizontal Carbon-in-Column Circuit during the first quarter of 2012 are expected to significantly improve the processing of clays and increase gold absorption capacity by 80%, thereby improving gold recovery rates from the milling system as well as from the on/off leach operation.
Subsequent to the end of the first quarter of fiscal 2012, the Company initiated the procurement of a fourth ball-mill plus the corresponding two additional leach tanks and two Carbon-in-Pulp tanks, which, as from the first calendar quarter of 2012, will add 1,000 tpd processing capacity, representing approximately 2,000 additional ounces of gold recovery monthly.
About Petaquilla Minerals Ltd. Petaquilla is a growing, diversified gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates a surface gold processing plant at its Molejon Gold Project, located in the south central area of its 100% owned 842 square kilometre concession lands in Panama - a region known historically for gold content. In addition, the Company has acquired 100% of the Lomero-Poyatos project located in the northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt and several other exploration licenses in Iberia.
Disclaimer. This press release includes forward-looking statements. All statements, other than statements of historical fact, contained in this news release, including, but not limited to, statements regarding future financial results, market assumptions, the estimation of mineral resources and the realization of mineral resource estimates, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Petaquilla's control that would cause the actual results, performance or achievements of Petaquilla to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions, Petaquilla's present and future business strategies and the environment in which Petaquilla will operate in the future. Any forward-looking statements speak only as at the date of this document. Petaquilla expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Petaquilla's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, except to the extent required by applicable law. As a result of these factors, the events described in the forward-looking statements in this press release may not occur either partially or at all.
On behalf of the Board of Directors of
PETAQUILLA MINERALS LTD.
Richard Fifer, Executive Chairman
No stock exchange has approved or disapproved the information contained herein.
Contacts:
Petaquilla Minerals Ltd.
Richard Fifer
Executive Chairman
(604) 694-0021 or Toll Free: 1-877-694-0021
(604) 694-0063 (FAX)
www.petaquilla.com