La Mancha's Profits Surge as Australian Mine Turns Cash Flow Positive and Profitable
MONTREAL, QUEBEC -- May 8, 2009 - All amounts are expressed in CA dollars, unless otherwise indicated. Unaudited
Cash flow from operating activities of $11.0 million
Revenues of $24.7 million
Net earnings of $3.5 million
Cash and short term investments of $20.1 million
18,515 ounces of gold produced at an average cash cost of US $451 per ounce
The Company elects to re-locate its corporate office to Paris while maintaining active investors' relation in Canada
La Mancha Resources Inc. (TSX: LMA) (hereinafter "La Mancha" or the "Company") produced 18,515 ounces of gold at an average cash cost of US $451 per ounce during the first quarter of 2009 compared to 16,260 ounces of gold at an average cash cost of US $534 per ounce in the same quarter last year. The increase in production is due to the start of production at the Australian Frog's Leg mine and an improved performance at the Ity mine in Africa, which together more than compensated for lower production from the Hassai mine and the gold recovered from the broken ore inventory at the White Foil pit in the first quarter of 2008.
Consolidated cash costs per ounce for the first quarter of 2009 were down 16% from the corresponding quarter of 2008 to US $451 per ounce. This decrease reflects the improved cash costs per ounce at the Ity mine and the commercial production from the Frog's Leg mine, which more than compensated for the slightly higher Hassai mine cash cost per ounce.
La Mancha's first quarter revenues totalled $24.7 million, due mainly to its stronger production and favourable changes in exchange rates. As shown in the following table, the Company's key financial indicators have strongly improved over the past twelve months. This first quarter of 2009 marks a milestone for La Mancha, with the Australian operation starting to contribute to the Company's operating cash flow capacity as the mine turned cash flow positive and profitable in the first quarter of 2009.
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La Mancha Resources Inc.
Vice President Corporate Development
Renmark Financial Communications Inc.
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