Mercator Reports Second Quarter Results and Provides Operations Update



    (Stated in US Dollars unless otherwise indicated)

    TRADING SYMBOL: TSX - ML

    VANCOUVER, Aug. 17 /CNW/ - Mercator Minerals Ltd. ("Mercator" or the
"Company") reports its results for the three and six month period ended June
30, 2009. This release should be read with the Company's unaudited financial
statements and management discussion and analysis available on the Company's
website and filed on SEDAR under the Company's issuer profile.
    Excluding non-cash items for accretion, amortization and stock based
compensation, the Company recorded adjusted earnings(*) of $1.4 million during
the quarter ended June 30, 2009, compared to a loss of $4.9 million during the
corresponding period in 2008. After the accrual for interest and interest
payments of $3.64 million and $5.81 million in non-cash items (including
accretion, amortization and stock based compensation), the Company recorded a
net loss of $4.4 million or $0.04 per share compared to a loss of $6.47
million or $0.09 per share for the corresponding period in 2008. For the
second quarter of 2009, the Company recorded production of 9,081,901 pounds of
copper (comprised of 7,867,241 pounds of copper in concentrates and 1,224,467
pounds of copper as cathode), 418,987 pounds of molybdenum and 56,441 ounces
of silver during quarter ended June 30, 2009, compared to 3,179,998 pounds of
cathode copper in the quarter ended June 30, 2008.
    "The second quarter of 2009 marked a significant milestone in the
Company's production growth, with the first full quarter of concentrate
production from the newly constructed mill at our Mineral Park Mine in
Arizona," said Michael L. Surratt, President and CEO. "We continue to ramp up
production levels and, with strengthening commodity prices, we expect the
third quarter of 2009 to be an even better one for the Mineral Park Mine and
for Mercator. In July, production at Mineral Park comprised 3.2 million pounds
of copper (in concentrate and as cathodes), 188,000 pounds of molybdenum in
concentrate and 22,605 ounces of silver in concentrate," Mr. Surratt added.

    
    Financial Highlights for the Three Months ended June 30, 2009

    -  Net loss for the three month period ended June 30, 2009 of
       $4.40 million ($0.04 loss per share) compared to a net loss of
       $6.48 million ($0.09 loss per share) for the corresponding period in
       2008.

    -  Excluding non-cash items for accretion, amortization and stock based
       compensation, the Company recorded adjusted earnings(*) of
       $1.4 million during the quarter ended June 30, 2009, compared to an
       adjusted loss(*) of $4.9 million during the corresponding period in
       2008;

    -  Revenues from cathode copper and copper concentrate, sales molybdenum
       and silver for the three month period ended June 30, 2009 of
       $21.25 million compared to $11.22 million for the corresponding period
       in 2008;

    -  Production of 9,081,901 pounds of copper (comprised of 7,867,241
       pounds of copper in concentrates and 1,224,467 pounds of copper as
       cathodes), 418,987 pounds of molybdenum and 56,441 ounces of silver
       during quarter ended June 30, 2009. This compares to copper
       production, all as cathodes, of 3,179,998 pounds in the quarter ended
       June 30, 2008;

    -  Financing completed during the period raised gross proceeds of
       $34.62 million;
    

    All financial information contained herein should be read in conjunction
with the Company's Management Discussion and Analysis and unaudited financial
statements for the period ended March 31, 2009 and the Management Discussion
and Analysis and Audited consolidated financial statements for the years ended
December 31, 2008 and 2007 and related notes thereto available under the
Company's profile on www.sedar.com.

    Mercator Minerals Ltd.

    Mercator Minerals Ltd. is a TSX listed mining company with an experienced
management team that has brought the mill expansion at the Mineral Park Mine,
one of the largest and most modern copper-moly mining-milling operations in
North America to production in less than 2 years. Mercator management is
dedicated to maximizing profits by making its Mineral Park Mine one of the
lowest cost operations in the industry.

    
    On Behalf of the Board of Directors

    MERCATOR MINERALS LTD.

    Per: "Michael L. Surratt"
    Michael L. Surratt,
    President
    

    This press release contains certain forward-looking statements, which
include estimates, forecasts, and statements as to management's expectations
with respect to, among other things, the size and quality of the Company's
mineral reserves and mineral resources, future production, capital and mine
production costs, demand and market outlook for commodities, and the financial
results of the Company. These forward-looking statements involve numerous
assumptions, risks and uncertainties and actual results may vary. Factors that
may cause actual results to vary include, but are not limited to, certain
transactions, certain approvals, changes in commodity and power prices,
changes in interest and currency exchange rates, inaccurate geological and
metallurgical assumptions (including with respect to the size, grade and
recoverability of mineral reserves and resources), unanticipated operational
difficulties (including failure of plant, equipment or processes to operate in
accordance with specifications, cost escalation, unavailability of materials
and equipment, delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related to health,
safety and environmental matters), political risk, social unrest, and changes
in general economic conditions or conditions in the financial markets. These
risks are described in more detail in the Annual Information Form of the
Company. The Company does not assume the obligation to revise or update these
forward-looking statements after the date of this report or to revise them to
reflect the occurrence of future unanticipated events, except as may be
required under applicable securities laws. For a more complete discussion,
please refer to the Company's audited financial statements and MD&A for the
year ended December 31, 2008 on the SEDAR website at www.sedar.com.

    
    The Toronto Stock Exchange does not accept responsibility for the
    adequacy or accuracy of this press release.

    (*)These are non-GAAP performance measures and readers should refer to
    Non-GAAP Performance Measures in the Company's Interim Management
    Discussion and Analysis for the three and six months ended June 30, 2009
    as filed on SEDAR for further details.
    





For further information:

For further information: Marc LeBlanc, VP Corporate Development and
Corporate Secretary, Tel: (604) 981-9661 or (604) 716-5582; Fax: (604)
960-9661; Email: mleblanc@mercatorminerals.com

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Mercator Minerals Ltd.

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