Welcome!

Agile Computing Authors: Elizabeth White, APM Blog, Stackify Blog, Progress Blog, LeanTaaS Blog

News Feed Item

TVI Pacific Provides Third Quarter 2012 Financial and Operational Results

CALGARY, Nov. 9, 2012 /CNW/ - TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) (TVI or the Company) today announced its unaudited, consolidated financial and operational results for the quarter ended September 30, 2012.

For a thorough explanation of the points discussed in this news release, shareholders are encouraged to read the unaudited interim consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), and the management's discussion and analysis for the periods ended September 30, 2012 and September 30, 2011 and the audited consolidated financial statements for the years ended December 31, 2011 and 2010.  These documents were filed with certain securities regulators in Canada, and are available on our web site (www.tvipacific.com or under our profile on SEDAR www.sedar.com).

Q3 2012 Highlights

  • Net revenue of $19.8 million realized from the sale of concentrate
  • Net income of $532.6 thousand
  • Earnings before interest, taxes, depreciation and accretion of $3.2 million
  • Cash balance of $9.5 million at quarter end
  • Short-term debt facilities of $7.6 million (average interest rate of 2.01%)
  • A working capital surplus of $12.2 million

Financial Highlights

  Quarter ended
September 30,
2012
Quarter ended
September 30,
2011
Quarter ended
June 30, 2012
       
Gross revenue ($ million) $22.4 $30.5 $26.5
Net revenue ($ million)  $19.8 $26.9 $22.6
Total cost per Copper Pound Equivalent (1) (US$) $2.41 $2.75 $2.62
Production cash cost per Copper Pound Equivalent (2) (US$) $1.29 $1.33 $1.29
Total cash cost per Copper Pound Equivalent net of by-products (3) (US$) $0.81 $1.04 $0.65
 Net income ($ million) $0.53 $2.96 $2.10
              
 Basic net income per share $0.000 $0.004 $0.003
Average copper price received (US$/lb) $3.48 $3.90 $3.57
Cash balance at quarter end ($ million)   $9.5 $13.8 $17.5
Letters of credit and loan facilities ($ million) (4)   $7.6 $25.7 $12.9
Working capital surplus ($ million) $12.2 $1.0 $13.3

(1)     Includes selling expenses and amortization expenses
(2)     Excludes selling expenses and amortization expenses
(3)     Includes selling expenses and excludes amortization expenses
(4)     Average interest rate of: 2.01% for Q3 2012, 5.88% for Q3 2011 and 2.04% for Q2 2012

The Canatuan mine generated net revenues of $19.8 million in Q3 2012 from the sale of concentrates, net of treatment, refining and penalties. The net revenue comprised two shipments of copper concentrate and is 26% lower than the $26.9 million net revenue realized during the same period in 2011. Copper prices during Q3 2012 were US$3.48/lb compared to $3.90/lb in Q3 2011 and US$3.57 in Q2 2012. This drop in copper prices contributed to the lower net revenue in Q3 2012 compared to both Q3 2011 and Q2 2012.

Net income was $0.53 million in Q3 2012, 82% lower than the $2.96 million in Q3 2011. Net income was impacted by higher general and administrative expenses during the quarter as a result of one-time charges incurred in relation to the acquisition of investment and joint venture arrangements with Foyson Resources Limited and Mindoro Resources Ltd. and legal and other administrative expenses related to the Balabag project. The lower average copper prices also partially contributed to a lower net income in Q3 2012.

Net income breakdown

  Quarter ended
September 30, 2012
($ million)
Reported net income 0.5
Interest expense and income taxes 0.2
Depreciation, depletion and accretion 2.5
One-time due diligence costs and other fees 2.0
Net income before interest, taxes, depreciation and accretion
   and one-time charges
5.2

The average copper mill feed grade during Q3 2012 was 0.92% Cu, consistent with Q2 2012. The average throughput improved slightly (from 2,520 dry metric tonnes in Q2 2012 to 2,580 dry metric tonnes in Q3 2012) resulting in a slight increase in copper pound equivalent of concentrates produced during Q3 2012.  Cyanide use during the third quarter was minimal with only a week of cyanide use in September during a campaign to clean the concentrate from elevated levels of lead (Pb). Mill operating costs will continue to be below budget/forecast because of the significant reduction in reagent consumption, particularly cyanide and the reagent that neutralizes the cyanide in the tailings. As a result Canatuan realized significantly higher than planned metal recoveries and lower than budget operating costs. TVI expects to complete two copper shipments during the remainder of 2012.

Stage 4 construction of the Sulphide Tailings Storage Facility was completed in the second quarter of 2012 and provides sufficient storage capacity for the remaining ore reserve tailings.  Work during the third and subsequent quarters was focused on erosion control and re-vegetation of the areas disturbed during construction in preparation for the final mine closure rehabilitation program.

Operational Highlights

  Quarter ended
September 30,
2012
Quarter ended
September 30,
2011
Quarter ended
June 30, 2012
Average tonnes processed per day       2,580       2,535       2,520
Ore copper grade (%)       0.92       1.21       0.92
       
Copper concentrate copper grade (%)       18.33       23.74       18.46
Copper concentrate gold grade (g/t)       9.41       6.83       9.48
Copper concentrate silver grade (g/t)       333.39       466.85       370.51
Zinc concentrate zinc grade (%)       48.40       -       49.64
       
Copper pound equivalent produced       7,034,311       7,521,596       6,997,256
      Copper produced (lbs)       3,924,034       4,497,398       3,750,947
      Gold produced (oz)       3,085       1,886       2,745
      Silver produced (oz)       109,055       139,820       127,685
      Zinc produced (lbs)       1,789,459       2,486,913       4,197,683

In Q3 2012 average mill throughput increased to 2,580 from 2,520 dry metric tonnes per day in Q2 2012; copper, gold, silver and zinc grades of concentrates produced were slightly lower compared to the previous quarter. Copper pound equivalent produced increased 1% quarter over quarter.

During the third quarter of 2012, the mill processed 237,383 tonnes; however, only a portion of original ore reserves was consumed due to the additional material found and mined during the year. This material, primarily mineralized schist, was used as a blending material to optimize mill recoveries and was located both inside and outside the pit shell and not included in the original ore reserves. Detailed metallurgical and ore reserve studies will continue to be undertaken to determine future processing scenarios and their potential impacts on the ore reserves and mine life.

Based on average daily throughput going forward of 2,600 tonnes per day, mine life is approximately 1.0 year (subject to change in throughput to meet shipping commitments).

In Q3 2012, TVI completed two copper concentrate shipments (30th and 31st) for a total of 10,274 dry metric tonnes. Approximately 5,000 dry metric tonne copper concentrate shipments are expected to occur approximately every 6 to 8 weeks, while zinc concentrate shipments are expected to occur approximately every 4 to 6 months.  To date, 31 copper concentrate shipments of approximately 5,000 dry metric tonnes each have been completed. Additionally, 4 zinc concentrate shipments have been completed to date, totalling 15,828 dry metric tonnes. The 32nd copper shipment began loading in early November 2012 and the 5th zinc shipment is scheduled in the last quarter of 2012.

Cash Position

As of September 30, 2012, TVI had short term debt facilities totalling $7.6 million at an interest rate averaging 2.01%.  Cash on hand was $9.5 million at the same date.

Presidential Executive Order #79 and Implementing Rules and Regulations (IRR)

On July 9, 2012, The Philippine Government introduced a new mining policy in the form of a Presidential Executive Order ("EO #79"), which provided direction to agencies of the Administration to carry out certain directives and signalled the Government's intention to seek legislation "rationalizing existing revenue sharing schemes and mechanisms".  Subsequent to the last quarterly report, the Department of Environment and Natural Resources has published a set of Implementing Rules and Regulations (IRR) that came into effect on October 25, 2012. The majority of the IRR text confirmed - by way of implementation - the elements of EO #79 detailed in TVI's Q3 2012 management's discussion and analysis. However, there were certain new elements and clarifications pertinent to TVI Resource Development (Phils.), Inc.'s business:

  • While the IRR confirmed that there will be no new mining agreements entered into until new legislation has been passed by Congress, "rationalizing existing revenue schemes and mechanisms", it introduced the possibility of expansion of existing contract areas if the Economic Development Cabinet Cluster rules that "there is an imminent or threatened economic disruption, such as a shortage of critical commodities or raw materials, that could adversely affect priority government projects and/or economic activities."  TVIRD intends to make application to the Government to expand the Canatuan Mineral Production Sharing Agreement (MPSA) to incorporate nearby prospects, which, when drilled, may extend the life of the project - as a possible alternative to applying for an Exploration Permit over these prospects.

  • The IRR introduced a series of clauses, which combined; give the Government the right to impose new terms and conditions on MPSAs as a condition for their renewal for 25 years after the expiry of the first 25-year term.  Industry has protested that these provisions may not be constitutional because they constitute an executive branch order that is in conflict with the Mining Act.  However, TVIRD's MPSAs (originally purchased from other entities) are not affected as they already contain a provision allowing the Government to set new terms and conditions at the time of renewal.

  • The IRR state that any mining applicant, whether individuals or juridical entities, with a record of an un-remediated environmental incident will not be eligible for new mining tenements.  Industry has raised the concern that this clause may be interpreted in future to include shareholders in publicly listed companies, of which management is not aware and over who has no responsibility.

The foregoing information regarding selected aspects of EO #79 and its corresponding IRR has been included in the MD&A to provide an update for readers who would otherwise be unaware of this recent development.  That information is based upon the text of EO #79 and its corresponding IRR and statements made by various Government officials in the Philippines in relation to that order and the corresponding IRR. Readers are cautioned not to place undue reliance upon the information respecting EO #79 and the corresponding IRR set out above, as there can be no assurances, at this time, with respect to the timing of implementation of new legislation and regulations or the ultimate effect that such legislation and regulations may have upon companies, such as TVIRD, operating in the Philippines mining sector.

For further information on TVI's operations please refer to the Management's Discussion and Analysis available on TVI's website www.tvipacific.com or under our profile on SEDAR www.sedar.com).

About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)

TVI Pacific Inc. is a publicly-traded Canadian company that is focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is in pre-development stage at its Balabag gold and silver project.  TVI also has an interest in an offshore Philippine oil property.

Connect With Us www.tvipacific.com
Follow us on Twitter www.twitter.com/tvipacific
"Like" us at www.facebook.com/tvipacific

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this news release constitute forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "schedule" and similar expressions. Forward-looking statements are based upon the opinions and expectations of TVI as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied. These factors include, but are not limited to, such things as general economic conditions in Canada, the United States, the Philippines and elsewhere; volatility of prices for precious metals, base metals, oil and gas; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with the exploration and development of mining properties; inherent risks associated with the exploration of oil and gas properties; ultimate recoverability of reserves; production, timing, results and costs of exploration and development activities; political or civil unrest; availability of financial resources or third-party financing; new laws (domestic or foreign); changes in administrative practices; changes in exploration plans or budgets; and availability of personnel and equipment (including mechanical problems). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.

Forward-looking statements regarding forward production costs and shipping and refining costs are based are based on current and previous mineral reserve and resource estimates, current mining and processing activities, prior experiences of management with mining and processing activities, the current development and operating plan, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements regarding the remaining mine life of the Canatuan deposit are based on current and previous mineral reserve and resource estimates, current mining and processing activities, prior experiences of management with mining and processing activities, the current development and operating plan, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements respecting the copper and zinc concentrate shipping schedules are based on the Company's previous experience with concentrate shipments, current mining and processing activities, current and previous mineral reserve and resource estimates, discussions to date with the off-take partner, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change).  Forward-looking statements regarding the nature and timing of exploration at the Greater Canatuan Tenement Area (including EXPA 61, Malusok and SE Malusok), Tamarok and the Company's other tenements in the Philippines are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, and the Company's overall plans, budget and strategy (which are all subject to change). In certain cases, the timing of exploration activities in the Philippines is dependent upon the receipt of free prior informed consent from indigenous communities and regulatory approvals from the government of the Philippines. Forward-looking statements regarding expectations that the Company will be able to find additional ore in the Greater Canatuan Tenement Area (including EXPA 61, Malusok and SE Malusok) are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, management's current and previous experience with mining and processing activities at Canatuan, and the Company's overall plans, budget and strategy (which are all subject to change). Forward-looking statements regarding the resumption of drilling activities at Tamarok are based on the exploration carried out to date and the Company's overall plans, budget and strategy for Tamarok (which is subject to change).  Forward-looking statements regarding the arrival date of additional drilling rigs in the Philippines are based on discussions with third parties. 

The forward-looking statements of the Company contained in this news release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which TVI and its affiliates are exposed in the conduct of their business are described in detail in the Company's Annual Information Form for the year ended December 31, 2011, which was filed on SEDAR on March 30, 2012, and is available at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this news release to reflect subsequent events or circumstances, except as required by law.

SOURCE TVI Pacific Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things’). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing? IoT is not about the devices, it’s about the data consumed and generated. The devices are tools, mechanisms, conduits. In his session at Internet of Things at Cloud Expo | DXWor...