great news!!! MALAGA ACHIEVES POSITIVE CASH FLOWS FROM OPERATIONS IN Q1 2010
Malaga Inc. is releasing its unaudited interim financial statements for the period ended March 31, 2010. The management discussion and analysis, and the unaudited financial statements, are available on the company's website and on SEDAR.
Malaga generated positive cash flow from operations, before changes in non-cash working capital items, of $300,000 during the first quarter of 2010. This is due to increased sales, which reached $3.8-million, compared with $3.4-million in the first quarter of 2009, of which $900,000 was generated from the sale of copper concentrate from tailings. The company sold 18,108 metric tonne units, compared with 17,062 metric tonne units for the corresponding quarter of 2009, which represents a historically high volume for Malaga. This was achieved in line with increased production capacity to the current level of 375 tonnes per day.
The selling price of the company's tungsten is based on the selling price of APT (ammonium paratungstate). Although the APT price had increased to $210 (U.S.) per metric tonne unit by March 31, 2010, compared with $185 (U.S.) per metric tonne unit as of Dec. 31, 2009, the average selling price for the quarter was $201 (U.S.), compared with $248 (U.S.) for the corresponding quarter of 2009.
Malaga decreased its monetary cost per metric tonne unit to $130 per metric tonne unit during the quarter, and also reduced its selling, general and administrative expenses by more than $100,000. The net loss amounted to $700,000, compared with $600,000 in the first quarter of 2009, or a net loss per share of nil (nil in 2009).
"We are pleased to achieve a positive cash flow position of $300,000, a quarter ahead of our forecast. The decrease in monetary costs per MTU, combined with increasing APT prices, are very encouraging signals. Cash flows should also increase in line with increased production capacity to 500 tpd," commented Pierre Monet, vice-president and chief financial officer of Malaga.
Jean Martineau, Malaga's president and chief executive officer, commented: "Our objective is to optimize our production processes in order to increase efficiency and the quantity of tungsten produced. We are still aiming at the second quarter to reach a production of 500 tpd. The financing closed on May 6 will allow us to increase our development work by the end of the year, allowing us to replace the utilized reserves and increase our measured and indicated resource."
Corporate events
Malaga Inc. will be attending the New York Hard Asset Investment Conference. Please join the company at the New York Marriott Marquis Hotel/Time Square in the Westside Ballroom on the fifth floor at booth No. 606.
