Mercator Financial Results for the Year ended December 31, 2010
VANCOUVER, April 1 /CNW/ --
(Stated in US Dollars unless otherwise indicated)
TRADING SYMBOL: TSX - ML
VANCOUVER, April 1 /CNW/ - Mercator Minerals Ltd. (TSX: ML) ('Mercator',
or the 'Company') has released its results for the three months and
year ended December 31, 2010. The complete financial statements and
management discussion and analysis are available for review on SEDAR
and the Company's website.
'2010 was a pivotal year for Mercator. After low molybdenum mill
recoveries at the Mineral Park mine resulted in higher than anticipated
unit operating costs in the first half of 2010, both production levels
and recoveries improved dramatically in the second half of the year.'
stated Michael L. Surratt, President and CEO. 'Phase I throughput is
operating at plant design capacity, the Phase II expansion is on
schedule and we expect to announce production results for the first
quarter of 2011 in the coming days, including near record monthly
production in March.'
Production (k lbs) Recoveries
Mo Cu Mo Cu
Q1 639 6,210 40.3% 60.1%
Q2 948 9,005 52.1% 73.8%
Q3 1,235 9,032 61.7% 72.9%
Q4 1,528 7,924 69.8% 77.9%
2010 4,350 32,172 57.2% 71.3%
Financial Highlights for the Year ended December 31, 2010
-- Produced 4.3 million pounds of molybdenum in concentrates, a
150% increase over 2009 production of 1.7 million pounds of
molybdenum in concentrates;
-- Produced 29.0 million pounds of copper in concentrates and 3.2
million pounds of cathode copper, a 9% increase over 2009
production of 29.6 million pounds of combined copper in
concentrates and cathode copper;
-- Sold 4.4 million pounds of molybdenum in concentrates, 27.8
million pounds of copper in concentrates, 3.2 million pounds of
cathode copper and 0.4 million ounces of silver compared to 1.6
million pounds of molybdenum in concentrates, 24.1 million
pounds of copper in concentrates, 4.4 million pounds of cathode
copper, and 0.1 million ounces of silver in 2009;
-- Revenue of $182.56 million in 2010, a 106% increase over 2009
revenue of $88.69 million;
-- Mining and processing costs (including freight, smelting and
refining) of $117.3 million in 2010, a 64% increase over 2009;
-- Cash flow from operations (before working capital adjustments
and one-time corporate debt extinguishment cost) in 2010 was
$27.2 million compared to a negative $1.2 million in 2009;
-- Capital expenditures of $59.4 million in 2010 compared to $39.2
million in 2009 and $132.3 million in 2008, respectively;
-- For the year ended December 31, 2010, the Company reported a
net loss, including one-time and non-cash items, of $115.07
million ($0.59 per share) compared with a net loss of $17.58
million ($0.13 per share), for the corresponding period in
2009.
Among the one-time or non-cash items affecting net income were:
-- $111.9 million unrealized on loss on derivative instruments
-- $10.9 million loss on long-term debt extinguishment
-- $11.1 million in amortization and depreciation
All financial information contained herein should be read in conjunction
with the Company's Management Discussion and Analysis and audited
financial statements for the years ended December 31, 2010 and 2009 and
related notes thereto available under the Company's profile on www.sedar.com.
Gary Simmerman, BSc, Mercator's VP Engineering, a Qualified Person as
defined by NI43-101, supervised the preparation of and verified the
technical information contained in this release.
Mercator Minerals Ltd.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: 'Michael L. Surratt'
Michael L. Surratt,
President
About 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 at the
Mineral Park Mine and the development of the El Pilar copper project in
Mexico.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
Forward Looking Information
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 use of proceeds,
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 and discussions of future plans, projections and objectives. In
addition, estimates of mineral reserves and resources may constitute
forward looking statements to the extent they involve estimates of the
mineralization that will be encountered if a property is developed.
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, 2010 on
the SEDAR website at www.sedar.com.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/April2011/01/c8532.html
Mark Distler, Chief Financial Officer, Tel: (928) 565-2226; Fax: (928) 565-9239; Email: mdistler@mercatorminerals.com.