PERTH, Australia, July 2, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or the Company) (ASX: MBN, TSX: MNB) wishes to provide updated guidance for 2013.
Mirabela is expecting production of 17,000 to 18,500 tonnes of nickel in
concentrate for 2013 (previously 22,000 to 24,000 tonnes). Production
is expected to be stronger in the second half of the year due to
improved access to higher quality South Pit ore. The unreconciled
production for the first half of 2013 is approximately 8,200 tonnes of
nickel in concentrate.
The lower production guidance is primarily due to:
Lower quality ore mined from the Central zone of the open pit;
Current disruptions to the supply of nitrate in Brazil which is
restricting the supply of explosives to the Company; and
Ongoing maintenance and remediation works to the primary crusher.
The Company maintains its unit cash cost guidance with unit cash costs
expected to average between US$5.00/lb and US$6.00/lb for the year.
Capital expenditure, exploration and study costs for 2013 are forecast
at between US$35 million and US$45 million (previously US$40 million
and US$50 million).
Mirabela expects to release its Quarterly Activity Report for the second
quarter of 2013 on 23 July 2013.
DISCLAIMER - FORWARD LOOKING INFORMATION
Certain information in this document, including all statements that are
not historical facts, constitutes forward-looking information within
the meaning of applicable Canadian & Australian securities laws. Such
forward-looking information includes, but is not limited to,
information which reflects management's expectations regarding
Mirabela's results of operations.
In making and providing the forward-looking information included in this
document, the Company has made numerous assumptions. These assumptions
include among other things: (i) assumptions about the price of nickel
and other base metals; (ii) assumptions about operating costs and
expenditures; (iii) assumptions about future production and recovery;
(iv) that the supply and demand for nickel develops as expected; (v)
that there is no unanticipated fluctuation in interest rates and
foreign exchange rates; and (vi) that there is no material
deterioration in general economic conditions. Although management
believes that the assumptions made and the expectations represented by
such information are reasonable, there can be no assurance that the
forward-looking information will prove to be accurate. By its nature,
forward-looking information is based on assumptions and involves known
and unknown risks, uncertainties and other factors that may cause the
Company's actual results, performance or achievements, or results, to
be materially different from future results, performance or
achievements expressed or implied by such forward-looking information.
Such risks, uncertainties and other factors include among other things
the following: (i) decreases in the price of nickel and copper; (ii)
the risk that the Company will continue to have negative operating cash
flow; (iii) the risk that additional financing will not be obtained as
and when required; (iv) material increases in operating costs; (v)
adverse fluctuations in foreign exchange rates; (vi) the risk that
concentrate produced will not meet certain minimum specifications;
(vii) production estimates may not be accurate; (viii) environmental
risks and changes in environmental legislation; (ix) and failure to
comply with restrictions and covenants under the Unsecured Senior
The Company's MD&A and the Annual Information Form contain information
on risks, uncertainties and other factors relating to the
forward-looking information. Although the Company has attempted to
identify factors that would cause actual actions, events or results to
differ materially from those disclosed in the forward-looking
information, there may be other factors that cause actual results,
performances, achievements or events not to be anticipated, estimated
or intended. Also, many of the factors are beyond the Company's
control. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information disclosed
in this document is qualified by this cautionary statement.
SOURCE: Mirabela Nickel Ltd.
For further information:
Ian Purdy, CEO & Managing Director
Mirabela Nickel Limited
Telephone: +61 410 491 908