ZAMBOANGA CITY - Canadian mining firm, TVI Resource Development Inc. (TVIRD) has reported a C$2.4 million (P102 million) net income in the first quarter of this year, up by 67% compared to the same period of last year with C$1.4 million.
Based on its quarterly report, the mineral company also posted total operating revenue of $10.5 million compared with $8.8 million in 2006 and cash flow from operations of $1.3 million compared with $2.7 million.
The turnaround was accounted for largely by positive effect of the company's drilling and gold extraction performances demonstrated in April, during which a daily average of 207 gold equivalent ounces ("AuEqOzs") was produced, which was significantly higher than the average daily production of 148 AuEqOzs for the first quarter.
Increased daily throughput and metal production is expected to lower overall costs of metal produced (on a unit of production basis), thereby increasing overall financial performance, the company said.
"Our solid financial performance for the first quarter of 2007 has provided a continuing platform for growth and expansion," said Clifford James, TVI's President said in a statement.
"First quarter earnings and cash flow financed a dramatically expanded exploration program, compared with the same period last year, as well as initial expenditures on the Sulphide Expansion Project, which is expected to be the cash flow engine for TVI for next year and for years to come," he added.
TVI is currently operating in Canatuan project located in the town of Siocon in Zamboanga Del Norte, which is the first foreign-funded mining project in the Philippines in nearly four decades.
The Canadian company acquired its mineral production sharing agreement on September 1996, with mining tenements of 508 hectares. Mining of gold and silver-bearing raw gossans ore began in May of 2004.
The mining company is now on the expansion mode acquiring more mining lands in the peninsula.
TVI Pacific, a publicly listed firm in Canada, has mining operations in the Philippines and China. It is also involved in independent drilling operation and holds minor stakes in Lafayette Mining's troubled Rapu-Rapu operation in Albay.
The company's latest report said that while Lafayette was suspended late last year, it paid royalty twice to TVI late last year and early this year.
The mining firm has earlier said that it has increased its gold and silver production by 112% as a result of targeted technical management.
The Canatuan mine has increased production of gold and silver to 56,880 gold equivalent ounces in 2006 from 26,830 gold equivalent ounces in 2005. A gold equivalent ounce is the combined amount of gold and silver produced with the latter's amount computed in gold ounces.
Gold production increased by 131% to 45,210 ounces in 2006 from 19,535 ounces in 2005. Silver production also rose by 36% to 608,507 ounces in 2006 from 445,859 ounces in 2005.
It officials said the improvement in production was due to a series of upgrades that were made to the mine and mill facilities at Canatuan in 2005 and 2006, resulting in record levels of metal production in 2006 when commodity prices were high.
Gold and silver ore supplied into the mill also increased 207% to 591,180 dry metric tons (dmt) in 2006 from 192,870 dmt in 2005.
The mine's recovery of precious minerals increased to 87.49% for gold and 61.82% for silver compared with 82.61% for gold and 50.10% for silver.
Cash cost for each gold equivalent ounce for 2006 was lower at $326 per ounce compared to $310 in 2005.
Total cost, which includes cash cost, amortization of equipment and previous mining expenses, for each gold equivalent ounce for 2006 is higher at $452 in 2006 from $415 in 2005. (Darwin Wee)
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