- Cash cost down to $1.81/lb
- Cash flow of $1.4 million generated from operations
- Revenue was $19.3 million (Q1-2015: $17.7 million), a 9% increase due to higher production offset by lower copper prices. The Company's recorded copper tolling price was $2.24/lb (Q1-2015: $2.68/lb).
- Tolling costs were $21.7 million (Q1-2015: $19.0 million), an increase of 14% driven by a 45% increase in copper production.
- Cash cost (a non-GAAP measure equal to the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits) before DET notional royalties decreased to $1.81/lb (Q1-2015: $2.33/lb) due to higher production.
- Total cost (a non-GAAP measure equal to the aggregate of cash cost, DET notional royalties and depreciation) decreased to $2.45/lb (Q1-2015: $3.06/lb), due to lower cash cost and lower DET notional royalties.
- Gross loss was $2.4 million (Q1-2015: $1.3 million) and net loss was $4.4 million (Q1-2015: $4.1 million).
- In Q1-2016 the Company generated cash flow from operations before changes in non-cash working capital of $1.4 million (Q1-2015: $1.2 million).
- Q1-2016 production was 12.9 million pounds of copper, 45% higher than the 8.9 million pounds produced in Q1-2015.
- Copper production includes 6.7 million pounds from Cauquenes, 5.3 million pounds from fresh tailings and 0.9 million pounds from Minera Maricunga.
- The ramp-up in production from Cauquenes has progressed in line with expectations, with tonnage at design rates of 60,000 tpd and plant recovery improving to 33% at the end of March.
- The Company's cash balance was $11.8 million (December 31, 2015: $9.0 million), with working capital of $0.1 million (December 31, 2015: working capital deficiency of $6.0 million).
- MVC received final proceeds of $4.7 million from the $64.4 million Cauquenes Expansion Loan, received $3.0 million from the DET Expansion Support Facility and repaid $3.4 million on the VAT Facility.
- Cash payments in Q1-2016 for capital expenditures ("Capex") were $3.7 million (Q1-2015: $8.7 million), and included final payments on the Cauquenes phase 1 expansion.
- MVC incurred sustaining Capex of $0.9 million in Q1-2016, in line with its 2016 Capex budget which is focused on building two additional extraction sumps in Cauquenes.
- MVC maintains its 2016 production guidance of 55.0 to 60.0 million pounds of copper at an annual cash cost of $1.65 to $1.85/lb.
- Copper production is expected to improve in the second half of the year when higher grade Cauquenes material is extracted from deeper zones.
- MVC is expected to incur sustaining Capex of $5.0 million in 2016, mostly in connection with extraction sumps at Cauquenes.
|Copper produced 1 million pounds||12.9||8.9||4.0||45||%|
|% of production from historic tailings||53||%||39||%||-||36||%|
|Gross copper tolling price ($/lb)||2.24||2.68||(0.44||)||(16||%)|
|Cash cost per pound 2||1.81||2.33||(0.52||)||(22||%)|
|Total cost per pound 2||2.45||3.06||(0.61||)||(20||%)|
|1 As of January 1, 2015 production of copper concentrates from El Teniente fresh and historic tailings is conducted under|
|a tolling agreement with Codelco's Division El Teniente ("DET")|
|2 Cash and total costs are non-GAAP measures.|
|Summary Consolidated Statements of Financial Position|
|March 31,||December 31,|
|Cash and cash equivalents||11,757||9,032|
|Property plant and equipment||179,122||181,494|
|Total liabilities and shareholders' equity||226,038||220,210|
|Summary Consolidated Statements of Comprehensive Loss|
|Tolling and production costs||(21,657||)||(18,970||)|
|Income tax recovery||703||298|
|Other comprehensive (loss) income||(112||)||76|
|Loss per share - Basic and Diluted||(0.03||)||(0.02||)|
|Summary Consolidated Statements of Cash Flows|
|Net Cash provided by (used in) operations||1,513||(17,117||)|
|Net cash used in investing activities||(3,714||)||(8,713||)|
|Net cash provided by financing activities||4,380||22,113|
|Net cash inflow (outflow)||2,179||(3,717||)|
- forecast production and operating costs;
- our strategies and objectives;
- our estimates of the availability and quantity of tailings, and the quality of our mine plan estimates;
- the extension of El Teniente's useful life and the extent of its remaining ore reserves;
- prices and price volatility for copper and other commodities and of materials we use in our operations;
- the demand for and supply of copper and other commodities and materials that we produce, sell and use;
- sensitivity of our financial results and share price to changes in commodity prices;
- our financial resources;
- interest and other expenses;
- domestic and foreign laws affecting our operations;
- our tax position and the tax rates applicable to us;
- the timing and costs of construction and tolling/production, and the issuance and maintenance of the necessary permits and other authorizations required for, our expansion projects, including the expansion for the Cauquenes deposit and the timing of ramp up to full production from Cauquenes;
- our ability to procure or have access to financing (including funding of the remaining phases of the Cauquenes project) and to comply with our loan covenants;
- the production capacity of our operations, our planned production levels and future production;
- potential impact of production and transportation disruptions;
- hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage, claims by third parties and suspension of operations
- our planned capital expenditures (including our plan to upgrade our existing plant and operations after phase one of Cauquenes is complete) and estimates of asset retirement, royalty, severance and other obligations;
- our future capital and production costs, including the costs and potential impact of complying with existing and proposed environmental laws and regulations in the operation and closure of our operations;
- repudiation, nullification, modification or renegotiation of contracts;
- our financial and operating objectives;
- our environmental, health and safety initiatives;
- the outcome of legal proceedings and other disputes in which we may be involved;
- the outcome of negotiations concerning metal sales, treatment charges and notional royalties/royalties;
- our capital expenditures, including the timing and cost of completion of capital projects;
- disruptions to the information technology systems of the Company and its subsidiaries (collectively, the "Group"), including those related to cyber-security;
- our dividend policy; and
- general business and economic conditions.