VANCOUVER, April 29 /CNW/ - Roca Mines Inc. (TSXV: ROK) ("Roca" or "the Company") has released its financial results for the
three and six months ended February 28, 2011. All dollar amounts are
stated in Canadian dollars unless otherwise indicated.
MAX Molybdenum Mine
The Company sells its concentrates to a UK-based buyer with final sales
revenues based on average prevailing molybdenum oxide prices in periods
subsequent to delivery. Revenues of $853,628 for the six months ended
February 28, 2011 result from shipments totaling 54,923 lbs of
contained molybdenum. The Company has no hedging program nor has it
sold forward any of its production.
The Max Molybdenum Mine has had a sustained shutdown due to instability
that occurred in September of 2010. During the six months ended
February 28, 2011, crews have conducted rehabilitation work and
geotechnical investigations to assess conditions and plan new miming
A revised mine plan has now been prepared and reflects the desire to
effectively isolate all future production from the stoping areas that
have recently caused various production delays. Rehabilitation work
commenced in November after adequate financing was received. In
addition to rehabilitation and general maintenance at the site, a
geotechnical program to survey the existing stope and mapping of other
workings has been completed.
In parallel with the activities described above, the Company has been
working with its various contractors to establish early mobilization
dates for critical path work. These tasks include stope development and
long-hole production drilling prior to restarting production. In
addition, various contractors are reorganizing staffing and management
for the mill and other operations at site.
The information in this news release and the selected financial
information should be read in conjunction with the interim consolidated
financial statements, and management discussion and analysis, for the
period ended February 28, 2011, which will be available at Roca's
website at www.rocamines.com.
During the six months ended February 28, 2011, the Company recorded
production revenues of $853,628 (2010 - $7,132,426) and a net loss of
$2,272,596 (2010 - $1,873,039). In the current year, the MAX molybdenum
mine and mill operated for only a small portion of the operating period
(16 days) and incurred temporary shutdown and rehabilitation costs of
$1,445,588 (2010 - Nil).
The Company recorded a negative adjustment of $8,051 to revenues during
the three months ended February 28, 2011 reflecting lower than expected
realized prices for earlier shipments settled in the current period.
The Company recorded revenues of $7,132,426 and a loss of $1,873,039
during the three months ended February 28, 2010 on significantly higher
throughput and concentrate production.
Summary Consolidated Statements of Operations and Loss
Three months ended
February 28, 2011
Six months ended
February 28, 2011
Cost of sales
Depletion, amortization, accretion
Temporary shutdown and rehabilitation costs
General & Administrative
Loss from Operations
Exchange gain (loss) and other income (loss)
Net Loss for the Year
Loss per Share - Basic and Diluted
It remains management's belief that molybdenum prices should remain
significantly greater than historic values for the foreseeable future
due to i) production problems globally, ii) the reduction of by-product
production related to copper mines and iii) the inability of new mines
to achieve financing. In real terms, recent global events have
seriously eroded the supply of molybdenum and management believes that
a realization of supply and demand fundamentals in the medium-term will
result in positive changes to pricing. It is therefore management's
goal to re-start production at the MAX Molybdenum mine and to advance
its permitted 1000 tpd expansion plans. This will ultimately reduce
unit costs and preserve the opportunity to produce concentrates in an
appreciating price environment.
ROCA MINES INC.
David J. Skerlec - Chief Financial Officer
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.
SOURCE Roca Mines Inc.
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