NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES
ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK EXCHANGE
PERTH, Western Australia, Aug. 31, 2012 /CNW/ - CGA Mining Limited and its subsidiaries ("CGA' or "the Company") announced revenue of US$187,694,298 ( 30 June 2011: US$238,481,332) and a net profit after tax of US$5,988,349 ( 30 June 2011: US$65,082,264) for the twelve month period ended 30 June 2012.
The results for the period were adversely impacted by the failure in July 2011 of the SAG Mill at the Company's operation at the Masbate Gold Project. All expenses in relation to the repair of the SAG Mill have been fully expensed in the twelve month period.Furthermore any insurance claims arising therefrom, including a loss of profits insurance claim, have not been reflected in the current year results. Any insurance proceeds received subsequently will be disclosed as income in the period received. Once the SAG Mill was brought back on line, record production of 100,013 ounces was achieved, in the six months to 30 June 2012, with a corresponding net profit after tax of US$28,109,938 (6 months to 30 June 2011: US$26,063,123), before allowing for the non-recurring expenses on the SAG Mill of US$6,213,085 and impairment arising from the mark to market of investments of US$6,869, 837. Net tangible assets per share increased from US73.42c per share as at 30 June 2011, to US84.39c per share as at 30 June 2012. Net assets likewise increased from US$283,099,543 as at 30 June 2011, to US$321,263,390 as at 30 June 2012. ABOUT CGA MINING LIMITED CGA is listed on the main board of the Toronto Stock Exchange and ASX. The Masbate Gold Project in the Philippines was successfully constructed with first gold poured mid-2009. The project has a total measured and indicated resource base of 5.13M ounces of gold, total inferred resource base of 2.83M ounces of gold and a proven and probable reserve of 3.097M ounces of gold. The 4Mtpa designed plant was constructed by Leighton Contractors Asia Limited ("Leighton") without one lost time injury. The mining contract for the Masbate Gold Project has been awarded to Leighton, the largest mining contractor in the world. CGA has completed a US$12M investment program designed to upsize throughput to 6.5Mtpa at Masbate. The project is forecast to produce at a rate of over 200,000 ounces per annum (Year ended 30 June 2011: 190,033 ounces). CGA has an aggressive exploration strategy. It is planned to undertake 100,000m of drilling as part of US$20M expenditure over the next twelve months. CGA has a disciplined acquisition program focused on acquiring new gold projects with a substantial initial resource with the capacity to grow materially and where the development and operational experience of CGA can be applied to enhance shareholder value.