MLG.TO/MLGAF.PK Picked up some Malaga Mining. Tungsten producer with the Pasto Bueno Mine in Peru. Produces 10% of the Tungsten mined outside of China. Caused me some pain a few yrs back when it emerged from Dyncor but I think they are making a lot of progress and the price and availability of Tungsten is in their favor. GLTA Art
For the full year 2011, Malaga generated a net income of $5.6 million ($0.03 per share), compared to a net income of $1.2 million ($0.01 per share) in 2010. This performance resulted from an average reference selling price increase per metric tonne unit (MTU) of $184 (77%), from $240 in 2010 to $424 in 2011.
Sales increased to $20.9 million during the year, up 47% from $14.2 million in 2010. This includes $1.9 million from copper sales, a by-product at Pasto Bueno, in line with copper sales for 2010. For the fourth quarter of 2011, sales were $5.6 million, compared with the fourth quarter of 2010 at $3.3 million in 2010.
Sales of tungsten in MTU amounted to 60,602 in 2011 compared to 70,407 in 2010, and due to a lower head grade of 0.67% compared to 0.81% in 2010, the actual production output was 55,357 MTU compared to 71,996 MTU in 2010.
The 2011 cash cost of production was $167 per MTU, up from $134 per MTU for the same period a year ago. The Company identified the main causes and managed to reduce and control costs for the second half of the year. However, a temporary shortfall of production in December due to permit delays had a negative impact on production output and costs. The Company believes that continued control of the average cost of production is achievable during 2012. The Company believes that demand for tungsten will continue to grow and prices of APT will continue to rise, as it expects supply will remain limited in the near future. In addition, China has cut its export quotas for antimony, indium, tungsten, molybdenum and tin by up to 5% for 2012 as it continues to protect its metal resources.From 2007 to 2010, world tungsten production ranged from 54,500 tonnes to 68,800 tonnes. During that same period, China produced 83% of the world’s tungsten, or between 41,000 and 59,000 tonnes per year. On March 27, 2012, the APT price was $430.
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