(Stated in US Dollars unless otherwise indicated)
TRADING SYMBOL: TSX - ML
KINGMAN, AZ, Aug. 15 /CNW/ - Mercator Minerals Ltd. today announced
income from operations for the quarter was $7,242,192 compared with $5,732,368
for the corresponding period in 2006; record revenues for the three month
period ended June 30, 2007 of $10,467,764 compared to $8,097,679 for the
corresponding period in 2006; a 30% increase and record copper production of
3,086,340 pounds for the three month period ended June 30, 2007, compared to
2,180,588 pounds for the corresponding three months in 2006. Earnings before
interest, taxes, depreciation and amortization ("EBITDA") for the quarter were
$5.6 million compared to $3.58 million for the second quarter of 2006.
During the current quarter, Mercator made the initial interest payment on
the Notes that were issued as part of the major financing for the expansion of
production at Mineral Park in February.
After payment of the initial interest payment of $5.1 million on the
Notes during the period and accruing $1.9 million in non-cash items, the
Company recorded a net income before taxes of $512,874 during the period.
"We are continuing with our aggressive growth strategy, with growing
SX/EW copper production at Mineral Park while progressing with construction of
the copper-molybdenum milling operation," said Michael L. Surratt, President
and CEO. "We had record production during the quarter, recorded record
revenues on the copper produced. We continue to see the benefits of our prior
expansion plans at Mineral Park, and we are progressing rapidly with
construction on the expansion program, which will come into production in the
second quarter of 2008, and which will ultimately see Mineral Park producing
an average of 56 million pounds of copper, 10 million pounds of molybdenum and
600,000 ounces of silver per year over the first 10 years of the projected
25 year mine life."
Financial Highlights for the Three Months ended June 30, 2007
- Income from Operations for the quarter was $7,242,192 compared with
$5,732,368 for the corresponding period in 2006;
- Gross revenues from copper sales and sale of landscaping materials
for the three month period ended June 30, 2007 of $10,467,764
compared to $8,097,679 for the corresponding period in 2006, a 30%
- Copper production of 3,086,340 pounds for the three month period
ended June 30, 2007, compared to 2,180,588 pounds for the
corresponding three months in 2006;
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") for the period was $5.6 million compared to $3.58 million
for the second quarter of 2006;
- Average realized price for copper sales during the period was
$3.37 per pound compared to $3.57 per pound for the corresponding
period in 2006.
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 June 30, 2007 and the Management Discussion
and Analysis and Audited consolidated financial statements for the years ended
December 31, 2006 and 2005 and related notes thereto available under the
Company's profile on www.sedar.com.
Mercator Minerals Ltd.
Mercator Minerals is a copper producer that owns and operates the Mineral
Park copper mine in Arizona, with a corporate strategy focused on maximizing
the production potential of the Mineral Park copper-molybdenum deposit. The
Company has filed a technical report for an expansion of copper production
plus molybdenum and silver production.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
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, 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, 2006 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.
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: firstname.lastname@example.org