Fundamentals continue to improve. Can't wait for all this Inmet fighting to end.
PETAQUILLA MINERALS LTD. HIGHLIGHTS FIRST QUARTER RESULTS OF FISCAL 2013
Petaquilla Minerals Ltd. Highlights First Quarter Results of Fiscal 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2012) - Petaquilla Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) ("Petaquilla" or the "Company") announces its first quarter operating and financial results for its Molejon gold mine, located in Panama. Currency is reported in United States dollars unless otherwise indicated.
Molejon Mine Operating and Financial Highlights for First Quarter of Fiscal 2013
Gold production at 17,882 ounces, an increase of 1% from prior quarter
Gold equivalent production at 18,459 ounces, an increase of 2% from prior quarter
Gold stockpiled at 112,266 ounces, an increase of 17% from prior quarter
Revenue at $25.9 million, an increase of 8% from prior quarter
Cash cost per ounce of gold equivalent sold at $524, a decrease of 14% from prior quarter
Operating margin at $10.6 million, an increase of 30% from prior quarter
Adjusted EBITDA at $12.7 million, an increase of 182% from prior quarter
Adjusted EBITDA reflects increased revenues relating to the termination of Petaquilla's existing prepaid forward minerals agreements, which have required the Company to deliver a specified amount of gold and silver ounces each month below then-prevailing spot prices. As previously announced, the Company intends to offer, on a private placement basis, US$210 million in senior secured notes due in 2017. The Company intends to use a portion of the proceeds of this offering to terminate its obligations under its existing prepaid forward minerals purchase contracts. By selling gold and silver at prevailing spot prices, the Company anticipates that it will realize significant increases in its sales prices, and, as a consequence, a significant increase in its EBITDA.
During the first quarter of fiscal 2013, work on the Molejon plant expansion progressed and the Company is on schedule to commission the expansion equipment during the second quarter of fiscal 2013. The new equipment will enhance plant throughput capacity at Molejon by 1,100 tonnes per day and increase production capacity by approximately 30%. In addition to the equipment acquired for the plant expansion, a second mobile crushing system was acquired by the Company's infrastructure subsidiary, Panama Desarrollo de Infraestructuras, S.A. (PDI). Upon commissioning, this crushing system will increase aggregate production and add approximately 10,000 tons per day to the Company's crushing capacity.
Further, on September 1, 2012, a resource and reserve estimate was completed by Behre Dolbear & Company (USA) Inc. ("Behre Dolbear") for the Botija Abajo deposit, associated with the Molejon gold operations. As a result of this estimate, the Company reported additional reserves of 210,000 gold equivalent ounces at its Molejon Project.
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