(Stated in US Dollars unless otherwise indicated)
TRADING SYMBOL: TSX - ML
KINGMAN, AZ, Aug. 15 /CNW/ - Mercator Minerals Ltd. announced its second
quarter financial results for the three and six months ended June 30, 2008 and
information on production at its Mineral Park Mine during the period. For the
second quarter of 2008, copper production totaled 3.2 million pounds, and
through July, and into August, production at the mine is on track for in
excess of one million pounds per month. The Company reported revenues of
$11,219,717 on the sale of 3,179,998 pounds for the quarter.
During the second quarter of 2008, the Company closed the previously
announced agreement with an affiliate of Silver Wheaton Corp. for the sale of
the life-of-mine silver production from Mineral Park copper/molybdenum mine in
Arizona. Under the agreement, Silver Wheaton's affiliate has made an up-front
payment of US$42 million in cash. Upon delivery of the silver, Silver
Wheaton's affiliate will then also pay in cash the lesser of the silver spot
price or US$3.90 per ounce of silver (escalated by 1% per annum starting in
the fourth year of silver production). The up-front payment is accounted for
as deferred revenue, and will be recognized as sales revenue on the basis of
the proportion of settlements during the period to expected total settlements.
Financial Highlights for the Three Months ended June 30, 2008
- Copper production of 3,179,998 pounds for the three month period
ended June 30, 2008, compared to 3,086,340 pounds for the
corresponding three months in 2007;
- Revenues from copper sales and sale of landscaping materials for the
three month period ended June 30, 2008 of $11,219,717 compared to
$10,458,764 for the corresponding period in 2007, a 7.2% increase;
- Net loss after non-cash items and interest expenses for the three
month period ended June 30, 2008 of $6,474,708 compared to net
earnings of $1,518,219 for the corresponding period in 2007,
contributed to note interest payments and phase 1 construction;
- Cash on hand at June 30, 2008 of $62,047,294 and working capital of
"The loss for the quarter and year to date are in line with our
expectations and estimates" stated Michael Surratt, Mercator's President and
CEO. "With the construction of the first stage of the 50,000 ton per day
milling operation well underway, and nearing completion and the commissioning
stage of the mill facility, the loss reflects the increased activity in the
construction phase, the interest payments made on the Notes that were issued
to finance the construction, and the increased activity by the employees at
the mine in gearing up for the commencement of milling operations this fall.
With the closing of the Silver Wheaton deal, our previous financing, and cash
flow from operations, we ended the quarter with better than $77 million in
Construction continues with significant progress, with the bulk of the
concrete work completed, mechanical installation in full swing, and most major
equipment on site by the end of the quarter. Subsequent to the end of the
quarter, the ball mill heads for the first stage of the expansion arrived on
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, 2008 and the Management Discussion
and Analysis and Audited consolidated financial statements for the years ended
December 31, 2007 and 2006 and related notes thereto available under the
Company's profile on www.sedar.com.
Mercator Minerals Ltd.
Mercator is a copper producer that owns and operates the Mineral Park
copper/molybdenum mine in Arizona, with a corporate strategy focused on
maximizing the production potential of the Mineral Park copper-molybdenum
deposit and growing through mergers and acquisitions. Mercator is in an
advanced stage of construction of the molybdenum-copper expansion at Mineral
Park. At full capacity, the Mineral Park mine average annual production during
the first 10 years is forecast to be approximately 56.4 million pounds of
copper, 10.3 million pounds of molybdenum and 0.6 million ounces of silver.
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, 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, 2007 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.