Orosur Mining Inc. Announces Results for the
Full year Ended May 31, 2012
SANTIAGO, Chile, August 15, 2012. Orosur Mining Inc (�OMI� or �the Company�) (TSX: OMI) (AIM: OMI), a South American focused gold producer and explorer, today announces results for the fiscal year ended May 31, 2012.
Operating and Financial Summary
Key Results Summary1 |
Full Year Ended May 31 |
2012 |
2011 |
Operating Results |
|
|
Gold produced |
Ounces |
55,458 |
55,817 |
Operating Cash cost3 |
US$/oz |
1,016 |
724 |
Average price received |
US$/oz |
1,656 |
1,347 |
Financial Results |
|
|
|
Revenue |
US$ �000s |
93,679 |
78,734 |
Net income for the period |
US$ �000s |
1,197 |
16,099 |
Cash flow from operations2 |
US$ �000s |
22,647 |
29,745 |
Cash at the end of the period |
US$ �000s |
11,461 |
14,178 |
Total Debt at the end of the period |
US$ �000s |
6,223 |
14 |
1Results are based on IFRS and expressed in US dollars
2Before non-cash working capital movements
3Operating cash cost is total cost discounting royalties and capital tax on production assets.
David Fowler, Chief Executive Officer commented:
�The last year has been challenging as we have laid much of the foundation for the future success of Orosur. We achieved our production target; completed the first phase of the new tailings storage facility; made good progress on closing and rehabilitating the old tailings facility; took Arenal Deeps (the first mechanized underground mine in Uruguay) into production; and continued with our exploration in Uruguay and Chile including the completion of a successful Preliminary Economic Assessment at Pantanillo, while also looking at many potential acquisitions in Latin America. This stretched the resources of the company and our operating and capital costs have been higher than expected.
We plan for 2012/13 to be a year of consolidation. We have introduced changes to management and the Board, are controlling our costs, and are refocusing the Company�s management and resources on delivering results from San Gregorio and on extending the mine life, whilst advancing our existing Chilean projects.
We are forecasting production for the 2013 fiscal year of 63,000 to 68,000 ounces at an operating cash cost of approximately $ 975 per ounce. As we need to complete our capital expenditure programs in 2012/13, our cash flow generation will not be as strong as previously anticipated. Thereafter we anticipate that we will generate significant operating cash with lower levels of capital for the three years to 31 May 2016.
Over the coming weeks we will be reviewing our strategy as to how best to use this cash flow to maximize returns to shareholders, and consider what level of dividends the Company should pay: We plan on announcing the results of this review in the first half of September. The Board and I are confident that we can deliver on our targets for 2012/13, and we look forward to it with enthusiasm.�
We are announcing our recent exploration results in a separate announcement today.
To read the complete news release, please see the following link:
http://www.orosur.ca/_resources/news/nr_2012_08_15a.pdf