OSISKO REPORTS THIRD QUARTER 2011 RESULTS NET PROFIT OF $9.3 MILLION
Montreal, QC - November 11, 2011 - Osisko Mining Corporation (the �Company� or �Osisko�) (OSK: TSX, EWX: Deutsche Boerse) is pleased to report its review of activities and financial results for the quarter ended September 30, 2011.
Third Quarter Highlights
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Gold production of 73,814 ounces (YTD 120,419 ounces including pre-production period)
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Earnings from mine operations of $38.3 million (YTD $39.9 million)
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Net profit of $9.3 million
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Cash flow generated from operating activities of $49.5 million
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Commencement of construction of $32 million pre-crush circuit (currently 30 percent complete)
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Grade reconciliation to the resource block model is currently plus 3 percent.
Sean Roosen, President and Chief Executive Officer, commenting on the third quarter results: �We are pleased with our financial results as we continue through the ramp up process at the Canadian Malartic Mine. We realized an average price of US$1,695 per ounce of gold sold in the past quarter, a cash margin of US$756 per ounce over our Q3 cash cost per ounce. Our operating performance continues to improve and with the completion of the pre-crushing circuit in the first quarter of 2012, we will be able to capture increasingly significant cash margins and generate solid cash flows in this strong gold market. Our flagship Canadian Malartic Mine will provide us with a strong financial base for our future growth as we seek opportunities to enhance shareholder value.�
Since commencement of commercial production on May 19, 2011 the mine has generated a cumulative profit of $39.9 million. The monthly financial performance continues to improve reflecting the normal modifications made during a ramp up period.
The quarterly profit amounted to $9.3 million ($0.02 per share) compared to a loss of $10.2 million ($0.03 per share) in the corresponding period in 2010. The third quarter results include $13.2 million of non-cash items, including a write-off of $4.9 million on the Goldboro project and three other grassroots projects, stock option expense of $2.3 million, non-cash foreign exchange loss of $4.3 million and unrealized loss on investments of $4.0 million, partially offset by a gain on premium of flow-through shares in the amount of $2.3 million. The exclusion of these non-cash charges would result in an adjusted profit of $22.5 million ($0.06 per share) for the quarter. There were no mining operations prior to May 2011.
For the year-to-date, the loss totaled $19.8 million ($0.05 per share) compared to a loss of $20.9 million ($0.06 per share) in the corresponding period in 2010. The exclusion of non-cash items of $31.1 million (write-off of property, plant and equipment of $16.3 million, stock option expense of $7.8 million, non-cash foreign exchange loss of $2.8 million and unrealized loss on investments of $8.5 million, partially offset by a gain on premium of flow-through shares in the amount of $4.3 million) would result in an adjusted profit of $11.3 million ($0.03 per share) for the year-to-date.
THIS PRESS RELEASE CONTAINS FINANCIAL RESULTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures including �cash cost per ounce�, �adjusted profit� and �cash margin per ounce� to supplement its financial statements, which are presented in accordance with International Financial Reporting Standards (�IFRS�). Refer to the Company�s third quarter 2011 Management Discussion and Analysis.
Third Quarter 2011 Results Conference Call
Osisko will host a conference call on Monday, November 14 at 11:00 AM ET, where senior management will discuss the financial results and provide an update of the Company's activities. Those interested in participating in the conference call should dial in at 416-981-9000 (Toronto local and international), or 1-800-773-0519 (North American toll free). An operator will direct participants to the call. The call will be retransmitted for 14 days with the following dial in number: 416-626-4100 or Toll-free 1-800-558-5253, access code 21545826.
About Osisko Mining Corporation
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec and is pursuing exploration on a number of properties, including the Hammond Reef Gold Project in Northern Ontario.
Mr. Luc Lessard, P. Eng., Senior Vice-President and COO of Osisko, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.
THIS PRESS RELEASE CONTAINS FINANCIAL RESULTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.
Cautionary Notes Concerning Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work will lead to mineral reserves that can be mined economically.
Note Regarding Certain Measures of Performance
This press release contains certain non-IFRS measures, including �cash cost per ounce�, �adjusted profit� and �cash margin per ounce�. The Company believes that these measures, together with measures determined in accordance with IFRS, provides investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Forward-Looking Statements
Certain statements contained in this press release may be deemed �forward-looking statements�. All statements in this release, other than statements of historical fact, that address events or developments that Osisko expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words �expects�, �plans�, �anticipates�, �believes�, �intends�, �estimates�, �projects�, �potential�, �scheduled� and similar expressions, or that events or conditions �will�, �would�, �may�, �could� or �should� occur including, without limitation, further development of its Hammond Reef project and increasing of throughput at the mill to achieve design capacity at its Canadian Malartic Mine, timely installation of the pre-crush circuit, compliance with noise regulations, increasing of mining fleet availability, increasing of production. Although Osisko believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation, that all technical, economical and financial conditions will be met in order to warrant further development of its Hammond Reef project and that the diligent ongoing optimizing of its operations at Canadian Malartic mine will be achieved and will, accordingly, improve its operating performance, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development personnel, results of exploration and development activities, Osisko�s limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in Osisko�s most recent Annual Information Form and in the most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. |
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