La Mancha Resources

Published : May 12th, 2010

Continues to Generate Profits Into 2010

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La Mancha Resources Inc.

All amounts are expressed in CA dollars, unless otherwise indicated.
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LA MANCHA CONTINUES TO GENERATE PROFITS INTO 2010

HIGHLIGHTS

  • Gold production up 17% to 21,654 ounces at an average cash cost of US $614 per ounce
  • Cash flow from operating activities of $9.9 million
  • Revenues of $27.8 million
  • Net earnings of $3.7 million
  • Cash and short-term investments of $21.4 million

PARIS, FRANCE - May 12, 2010 - La Mancha Resources Inc. (TSX: LMA, hereinafter �La Mancha� or the �Company�) produced 21,654 ounces of gold at an average cash cost of US $614 per ounce during the first quarter of 2010 compared to 18,515 ounces of gold at an average cash cost of US $451 per ounce in the same quarter last year. The increase in production is due to the ramp-up of the Australian Frog�s Leg mine and the improved performance of the Hassa� mine in Sudan, which together more than compensated for lower production at the Ity mine in C�te d�Ivoire.

This stronger gold production drove La Mancha�s first quarter revenues up to $27.8 million, marking a 13% increase over the corresponding period of last year, as the gold price in Canadian dollars remained fairly stable between the two periods.

Dominique Delorme, President and CEO of La Mancha, stated: �La Mancha continues to progress in accordance with our business plan. While we are pleased with our strong first quarter results, they still do not fully reflect our achievements. For the second quarter, we expect the combined impact of increased mill capacity, increased ore production at Frog�s Leg, and the recent start of production at White Foil to boost our gold production from Australia alone to over 31,000 ounces. We therefore remain confident that we will achieve our target 2010 gold production of up to 140,000 ounces.�

La Mancha�s cash flows from operating activities totalled $9.9 million in the first quarter of 2010, down from $11.0 million in the corresponding period of 2009 as higher gold production did not compensate for the increase in cash cost per ounce. The Company�s cash and short-term investments remained strong at $21.4 million as of March 31, 2010, while long-term debt decreased from $16.1 million to $14.3 million year over year.

La Mancha posted net earnings of $3.7 million for the first quarter of 2010, with each mine reporting positive results. This compares to net earnings of $3.5 million a year ago.

AUSTRALIAN OPERATIONS

The Frog�s Leg mine generated 9,789 ounces of gold net to La Mancha from toll milling at an average cash cost of US $570 per ounce (AUD 631 per ounce) in the first quarter of 2010 compared to 6,115 ounces at an average cash cost of US $386 per ounce (AUD 562 per ounce) generated in the corresponding period of 2009.

The cash costs per ounce in Australian dollars increased by 12% over the corresponding period of 2009 mainly due to increases in both mining unit costs, as mining depth increased, and contracted toll milling costs. As shown above, the unfavourable foreign exchange rate fluctuation was the main reason for the cash cost variation expressed in US dollars per ounce.

Underground ore extraction continued to accelerate, once again setting a record, and even surpassing the average ore extraction rate in the upgraded mine plan published in the second half of 2009.

THIS PRESS RELEASE CONTAINS TABLES, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.

CORPORATE EVENTS

La Mancha will present at the NYSSA (New York Society of Security Analysts) 10th Annual Metals & Mining Industry Conference (New York, USA) to be held on June 2 and 3, 2010. Management of La Mancha will present at 1:45 pm on Thursday, June 3, 2010.

ABOUT LA MANCHA RESOURCES INC.:

La Mancha Resources Inc. is an international gold producer based in Canada with operations, development projects and exploration activities in Africa, Australia and Argentina. La Mancha�s shares trade on the Toronto (TSX) under the symbol �LMA�. For more information on the Company, visit its website at http://www.lamancha.ca/.

THIS PRESS RELEASE CONTAINS TABLES, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain �forward-looking statements�, including, but not limited to, the statements regarding the Company�s strategic plans, future commercial production and profitability, development and construction of mine and production targets and timetables; statements regarding the increase in production of Frog�s Leg; statements regarding the future production level of the quartz line in Sudan and the positive impact that will have the upcoming dust vacuum system; statements regarding the Company�s ability to deliver a scoping study on the VMS project during the third quarter of 2010; statements regarding the positive impact of Ity�s new leaching pads on production. Forward-looking statements express, as at the date of this press release, the Company�s plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statemen ts involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in La Mancha�s 2009 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.

 

Contact

La Mancha Resources Inc.
Martin Amyot          
Vice President Corporate Development          
Tel.: (514) 987-5115     
info@lamancha.ca


Nicole Blanchard
Investor Relations
Tel.: (514) 961-0229

Renmark Financial Communications Inc.
John Boidman: jboidman@renmarkfinancial.com
Maurice Dagenais: mdagenais@renmarkfinancial.com
Tel.: (514) 939-3989 or (416) 644-2020 www.renmarkfinancial.com

 

Renmark Financial Communications Inc.

Montreal (Head Office): 1550 Metcalfe, Suite 502, Montr�al, Qu�bec, H3A 1X6
Tel.: (514) 939-3989 Fax: (514) 939-3717
Toronto: 121 King Street West, Suite 1140, Toronto, Ontario, M5H 3T9
Tel.: (416) 644-2020 Fax: (416) 644-2021

Website: www.renmarkfinancial.com - Email: info@renmarkfinancial.com

 

Disclaimer: This correspondence is not to be construed as an offer to buy or sell securities or options. Renmark does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest. We support best practices in responsible e-mail marketing and respect your right to be removed from this campaign. Should you no longer wish to receive e-mails from us, please reply to this e-mail, indicating "Unsubscribe" in the subject line.
Data and Statistics for these countries : Argentina | Australia | Canada | France | Sudan | All
Gold and Silver Prices for these countries : Argentina | Australia | Canada | France | Sudan | All

La Mancha Resources

PRODUCER
CODE : LMA.TO
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La Mancha Res. is a gold producing company based in Canada.

La Mancha Res. holds various exploration projects in Argentina and in Australia.

Its main assets in production are WHITE FOIL, ITY, HASSAÏ and FROG'S LAKE in Australia, its main asset in development is FETEKRO in Australia and its main exploration properties are LA ORTIGUITA, BONDOUKOU, HUALILAN and ARIAB in Argentina and HASSAI VMS and PARK DAM in Australia.

La Mancha Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 499.5 millions as of today (US$ 500.2 millions, € 391.6 millions).

Its stock quote reached its lowest recent point on October 31, 2008 at CA$ 0.04, and its highest recent level on March 09, 2012 at CA$ 4.03.

La Mancha Res. has 142 716 000 shares outstanding.

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Annual reports of La Mancha Resources
Annual Report
Nominations of La Mancha Resources
4/2/2012ANNOUNCES CHANGES TO ITS BOARD OF DIRECTORS
5/4/2011Appoints New COO and CFO
2/26/2007New Appointments to the Board of La Mancha
Financials of La Mancha Resources
3/28/2012POSTS RECORD NET EARNINGS OF $36.1 M AND RECORD OPERATING C...
8/8/2011POSTS RECORD NET EARNINGS FOR THE SECOND QUARTER
5/18/2011NET EARNINGS DOUBLE ON RECORD CASH FLOW FROM OPERATING ACTIV...
Project news of La Mancha Resources
2/11/2013Group implements its growth strategy in Australia: Gold prod...
11/13/2012ANNOUNCES COMPLETION OF COMPULSORY ACQUISITION BY WEATHER I...
3/27/2012MEASURED AND INDICATED RESOURCES MORE THAN DOUBLE TO 4.8 MI...
1/19/2012MEETS ITS 2011 GOLD PRODUCTION FORECAST
5/16/2011(Ity)POSITIVE FEASIBILITY STUDY FOR THE HASSA=C3=8F MINE: LA MANC...
5/9/2011(Ity)ITY MINE RESUMES OPERATION
3/29/2011(Frog's Lake)A Record Year for La Mancha in 2010 as Production Increases ...
2/24/2011(Ity)ITY Mine Update
8/23/2010(Fetekro)Intersects Grades of Up to 135 g/t Au at Its Fetekro Propert...
8/3/2010First Stages of Frog's Leg Drilling Extension Program Return...
7/29/2009(Hassaï)New Longhole Drilling Doubles the Length of La Mancha's Hass...
7/20/2009(Frog's Lake)Frog's Leg Mine to Boost its Average Annual Gold Production ...
5/26/2009(Hassaï)Confirms the Presence of a Second Enriched Zone at the Hassa...
2/17/2009(Frog's Lake)Plans to Increase Production to up to 100,000 oz of Gold in ...
1/22/2009(Frog's Lake)2008 Year End Production Increases 33% to 71,550 Ounces
1/7/2009(Hassaï)Hassai Mine Tailings Begin Adding to La Mancha's Gold Resour...
1/5/2009(Ity)Resource at La Mancha's Ity Mine Jumps 50% on Excellent Dril...
12/10/2008(Hassaï)Recent VMS Drilling Suggests the Presence of a Supergene Zon...
7/30/2008(Hassaï)Preliminary Drill Results at La Mancha's Hassai Mine Suggest...
8/8/2008(Frog's Lake)Posts its Highest Quarterly Gold Production to Date
5/13/2008(Frog's Lake)Obtains a First Gold Pour From New Australian Frog's Leg Min...
4/23/2008(Frog's Lake)Reports Wide High-Grade Intercepts 150 Meters Below Current ...
7/5/2007(Frog's Lake)Frog?s Leg?s Resource Nearly Doubles
Corporate news of La Mancha Resources
11/13/2012Offer Update
8/28/2012ACKNOWLEDGES WEATHER II TAKEOVER OFFER SUCCESSFUL AND DECLAR...
8/3/2012SECOND QUARTER GOLD PRODUCTION JUMPS 21% FROM THE PREVIOUS Q...
7/31/2012Offer Update - La Mancha TSX:LMA
7/20/2012Offer Document Posted - La Mancha TSX:LMA
7/13/2012REACHES DEFINITIVE AGREEMENT TO BE ACQUIRED BY WEATHER II AT...
6/21/2012DISCOVERS A SIGNIFICANT VMS LENS BELOW THE ODERU
6/15/2012(White Foil)WHITE FOIL PROPERTY SHOWS UNDERGROUND POTENTIAL WITH MINERA...
6/11/2012(Ity)New Drill Results at La Mancha's Ity Mine Indicate That Mine...
5/15/2012REPORTS Q1 NET EARNINGS OF $7.9 MILLION
4/9/2012ANNOUNCES CHANGES TO ITS BOARD OF DIRECTORS
3/22/2012Proven and Probable Reserves Grow by 36% at La Mancha's Frog...
3/14/2012ANNOUNCES AUCTION PROCESS
2/22/2012VMS Resource Increases to 81MT Indicated and 37MT Inferred
1/31/2012Discovers a Mineralized Structure Extending Over 800M at Sis...
9/12/2011HASSA=C3=8F VMS DRILLING UPDATE: INTERSECTS 3.30M @ 94 g/t G...
7/11/2011HIGHLIGHTS IMPORTANT STEP FORWARD FOR SUDAN
6/27/2011Hassai Mine's Third Quarter Production Impacted
6/17/2011(Ity)Clarification on CIL Feasibility Study
5/3/2011NOMME UN NOUVEAU CHEF DES OPERATIONS ET UN NOUVEAU CHEF DES ...
1/14/2011RECORD GOLD PRODUCTION IN 2010
7/22/2010Confirms the Discovery of a New Gold Mineralised Zone at its...
5/12/2010Continues to Generate Profits Into 2010
11/11/2009Reports Another Strong Quarter
8/7/2009Posts Record Quarterly Net Earnings As Gold Production Rises...
2/4/2009Takes Advantage of Strong Gold Prices
2/5/2008 to Spend $10.6 Million on Exploration in 2008
5/28/2007Completes the Renewal of the Ity Mine's Mining Permit
5/16/2007Frog's Leg Results Exceed Expectations
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