TORONTO, ONTARIO--(Marketwire - March 30, 2011) -
All Dollar Amounts are in U.S. Dollars Unless Otherwise Indicated
Ivernia Inc. ("Ivernia" or the "Company") (News - Market indicators) today reported revenue of $37.9 million for the fourth quarter of 2010, compared with revenue of $16.9 million for same period last year. For the year ended December 31, 2010, revenue totaled $100.8 million compared to $25.2 million for 2009.
The Company recorded income after operating costs and amortization ("Operating Income") of $8.3 million for the fourth quarter of 2010, compared to an Operating Income of $2.7 million for the same period last year, and Operating Income of $6.6 million for the year ended 2010, compared to Operating Income of $3.4 million for 2009.
The Company returned a second consecutive quarter of profitability, with a net income of $24.6 million, or $0.08 per common share, for the fourth quarter of 2010 compared with a net income of $5.9 million, or $0.03 per common share for the same period last year. For the year ended December 31, 2010 net income was $17.1 million, or $0.08 per common share, compared to a net loss of $3.3 million, or $0.02 per common share, for 2009.
2010 FOURTH QUARTER AND YEAR END HIGHLIGHTS
Operational
- Continued quarter over quarter increase in lead production and recoveries from the Magellan Mine since the restart of operations in February, 2010
- Lead recovery of 78% in the fourth quarter of 2010 – representing near-record quarterly recoveries and a 2% increase from the previous quarter's 76%
- Fourth quarter production of 16,900 tonnes of lead contained in concentrate produced – a 15% increase from the previous quarter
- Achieved total milling of 316,000 tonnes for the fourth quarter – a 22% increase from the previous quarter
- Completed drilling program at the Magellan Mine in 2010, which formed the basis for new mineral resources and reserves – this resulted in an 87% increase in tonnage (76% increase in contained metal) for measured and indicated mineral resources and a 42% increase in tonnage (45% increase in contained metal) for mineral reserves
- Entered into an exploration earn-in agreement on the Prairie Downs project and completed a successful first phase drilling campaign
Financial
- Recorded revenue of $37.9 million for the fourth quarter, and $100.8 million for the year
- Operating Income of $8.3 million for the fourth quarter and $6.6 million for the year
- Net income of $24.6 million for the fourth quarter and $17.1 million for the year
- $7.9 million in cash generated from operating activities during the fourth quarter and $6.9 million for the year
- Cash balances of $14.4 million at year end
- Highest average quarterly lead price per pound realized since operations commenced
FINANCIAL AND OPERATING HIGHLIGHTS
The following table is a summary of Ivernia's financial and operating highlights for the three months and years ended December 31, 2010, 2009 and 2008:
| |
Three months ended December 31, |
|
Year ended December 31, |
|
| (in thousands of United States dollars, unless otherwise indicated and per share amounts) |
2010
$ |
|
2009
$ |
|
2008
$ |
|
2010
$ |
|
2009
$ |
|
2008
$ |
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue(1) |
37,945 |
|
16,904 |
|
- |
|
100,764 |
|
25,172 |
|
- |
|
| Operating costs |
(26,445 |
) |
(13,823 |
) |
(1,045 |
) |
(89,100 |
) |
(20,854 |
) |
(7,491 |
) |
| Amortization |
(3,213 |
) |
(387 |
) |
(12 |
) |
(5,028 |
) |
(887 |
) |
(888 |
) |
| |
8,287 |
|
2,694 |
|
(1,057 |
) |
6,636 |
|
3,431 |
|
(8,379 |
) |
| Asset impairment |
- |
|
- |
|
(73,000 |
) |
- |
|
- |
|
(73,000 |
) |
| General and administrative |
(2,423 |
) |
(1,757 |
) |
(2,004 |
) |
(8,464 |
) |
(6,850 |
) |
(6,515 |
) |
| Esperance/Fremantle and related costs(2) |
- |
|
(15 |
) |
(110 |
) |
- |
|
(1,293 |
) |
(839 |
) |
| Net interest expense |
(584 |
) |
(888 |
) |
(237 |
) |
(2,575 |
) |
(2,812 |
) |
(2,337 |
) |
| Accretion |
(1,089 |
) |
(734 |
) |
(1,636 |
) |
(4,011 |
) |
(4,231 |
) |
(8,059 |
) |
| Stock option costs |
(31 |
) |
(37 |
) |
31 |
|
(152 |
) |
(75 |
) |
(164 |
) |
| Esperance settlement |
- |
|
- |
|
(8,002 |
) |
- |
|
- |
|
(8,002 |
) |
| Inventory (write-down) recovery |
(97 |
) |
- |
|
(6,749 |
) |
2,161 |
|
4,188 |
|
(7,543 |
) |
| Loss on investments |
- |
|
- |
|
(954 |
) |
- |
|
- |
|
(954 |
) |
| Debt settlement expense |
- |
|
- |
|
- |
|
- |
|
(753 |
) |
- |
|
| Foreign exchange and other expenses |
4,306 |
|
646 |
|
(1,826 |
) |
4,331 |
|
277 |
|
(1,990 |
) |
| |
82 |
|
(2,785 |
) |
(94,487 |
) |
(8,710 |
) |
(11,549 |
) |
(109,403 |
) |
| Income (loss) before income taxes |
8,369 |
|
(91 |
) |
(95,544 |
) |
(2,074 |
) |
(8,118 |
) |
(117,782 |
) |
| Income tax recovery(3) |
16,187 |
|
6,004 |
|
20,824 |
|
19,178 |
|
4,814 |
|
27,613 |
|
| Net income (loss) |
24,556 |
|
5,913 |
|
(74,720 |
) |
17,104 |
|
(3,304 |
) |
(90,169 |
) |
| Basic (loss) earnings per share(4) |
0.08 |
|
0.03 |
|
(0.41 |
) |
0.08 |
|
(0.02 |
) |
(0.53 |
) |
| Fully diluted (loss) earnings per share |
0.08 |
|
0.01 |
|
(0.41 |
) |
0.08 |
|
(0.02 |
) |
(0.53 |
) |
| Weighted average shares outstanding thousands |
310,102 |
|
180,548 |
|
180,153 |
|
210,115 |
|
180,252 |
|
170,873 |
|
| Unrealized gain (loss) on investment |
46 |
|
- |
|
897 |
|
133 |
|
(4 |
) |
403 |
|
| Comprehensive income (loss) |
24,602 |
|
5,913 |
|
(73,823 |
) |
17,237 |
|
(3,308 |
) |
(89,766 |
) |
| Cash provided by (used in) operations before changes in non-cash working capital |
10,384 |
|
530 |
|
(7,799 |
) |
847 |
|
(8,287 |
) |
(21,553 |
) |
| Cash flow provided by (used in) operating activities |
7,939 |
|
6,038 |
|
(5,356 |
) |
6,949 |
|
(2,946 |
) |
(23,764 |
) |
| Operating Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
| Ore milled (000's tonnes) |
316 |
|
- |
|
- |
|
874 |
|
- |
|
- |
|
| Average head grade (% lead) |
6.9 |
|
- |
|
- |
|
6.8 |
|
- |
|
- |
|
| Recovery (%) |
78 |
|
- |
|
- |
|
74 |
|
- |
|
- |
|
| Concentrate produced (000's dry tonnes) |
25.9 |
|
|
|
- |
|
68.0 |
|
- |
|
- |
|
| Concentrate sold (000's dry tonnes) |
23.5 |
|
11.3 |
|
- |
|
71.3 |
|
20.1 |
|
- |
|
| Lead metal in concentrate produced (000's tonnes) |
16.9 |
|
- |
|
- |
|
44.1 |
|
- |
|
- |
|
| Lead metal in concentrate sold (000's tonnes) |
15.3 |
|
7.3 |
|
- |
|
46.2 |
|
12.8 |
|
- |
|
| Concentrate inventory (000's of dry tonnes) (5) |
5.1 |
|
9.2 |
|
29.0 |
|
5.1 |
|
9.2 |
|
29.0 |
|
| Average lead price LME cash settlement ($ per pound) |
1.08 |
|
1.05 |
|
0.57 |
|
0.97 |
|
0.79 |
|
0.95 |
|
| Ivernia's average lead sale price ($ per pound) |
1.19 |
|
1.10 |
|
- |
|
1.04 |
|
0.94 |
|
- |
|
| Cash cost per pound sold ($ per pound)(6) |
N/A |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
| |
|
|
| (1) |
|
Shipments of lead carbonate concentrate from the Magellan Mine were curtailed by the suspension of lead shipments through the Port of Esperance on March 12, 2007, leaving two stockpiles totalling approximately 29,000 dry metric tonnes of lead carbonate concentrate, of which 21,000 dry metric tonnes was located at the Magellan Mine site and 8,000 dry metric tonnes at the Port of Esperance. This suspension was lifted in December 2008, following which a first shipment of approximately 600 dry metric tonnes was made in March 2009 and a second shipment of approximately 7,700 dry metric tonnes in May 2009. Final reconciliation of the Esperance stockpile led to an inventory gain of approximately 300 dry metric tonnes of lead carbonate concentrate. Final reconciliation of the mine site stockpile in the first quarter of 2010 lead to an inventory loss of approximately 800 dry metric tonnes of lead carbonate concentrate |
| (2) |
|
Costs incurred in the advancement of the application for regulated shipping approvals through the Port of Fremantle, the removal of the stranded lead carbonate concentrate stockpile at the Port of Esperance and other related activities |
| (3) |
|
Of the $19.2 million in income tax recovery for the year, $8.7 million relates to the reduction of a valuation allowance on Magellan Metals' non capital loss carry forwards. During the fourth quarter of 2010, the Company reduced the valuation allowance relating to Magellan Metals' non capital loss carry forwards from 31.5% to 0% releasing $8.7 million of prior year unrecognized losses into the income tax recovery provisions |
| (4) |
|
Per share data was calculated on the basis of the weighted average shares outstanding (basic and diluted) for the relevant period |
| (5) |
|
Inventory was increased by 2,000 dry metric tonnes in the third quarter of 2008 as a result of an updated inventory reconciliation |
| (6) |
|
Cash cost per pound sold is a non-GAAP measure. Cash cost of lead sold is not currently meaningful as the Magellan Mine was ramping up towards steady state production in 2010. When the Magellan Mine achieves steady state production run rates in 2011, information about the cash cost of lead sold will be reintroduced |
OPERATIONS REVIEW – MAGELLAN MINE
Principal activities during 2010 focused on the continuing ramp-up of production levels following the restart of operations in February 2010.
The table below summarizes quarterly mine production, process production, shipments and inventories for the year ended December 31, 2010:
|
Three months ended
March 31 |
Three months ended
June 30 |
Three months ended
September 30 |
Three months ended
December 31 |
Twelve months ended
December 31 |
| Mining |
|
|
|
|
|
| |
Ore mined – 000's tonnes(1) |
- |
182 |
233 |
301 |
716 |
| |
Low grade ore mined – 000's tonnes(2) |
15 |
85 |
44 |
117 |
261 |
| |
Total ore and waste mined – 000's bcm |
118 |
729 |
952 |
868 |
2,667 |
| |
|
|
|
|
|
| Processing |
|
|
|
|
|
| |
Ore milled – 000's tonnes |
32 |
268 |
259 |
316 |
874 |
| |
Average head grade – % lead |
6.9 |
6.2 |
7.4 |
6.9 |
6.8 |
| |
Average recovery – % |
54 |
69 |
76 |
78 |
74 |
| |
Concentrate produced – 000's dry tonnes |
2.0 |
17.5 |
22.6 |
25.9 |
68.0 |
| |
Concentrate grade – % lead |
60 |
65 |
65 |
65 |
65 |
| |
Lead metal in concentrate produced – 000's tonnes |
1.2 |
11.4 |
14.6 |
16.9 |
44.1 |
| |
|
|
|
|
|
| Sales and inventories |
|
|
|
|
|
| |
Concentrate sold – 000's dry tonnes |
8.4 |
13.3 |
26.1 |
23.5 |
71.3 |
| |
Concentrate grade – % lead |
64 |
65 |
65 |
65 |
65 |
| |
Lead metal in concentrate sold – 000's tonnes |
5.4 |
8.6 |
16.9 |
15.3 |
46.2 |
| |
Concentrate inventory – 000's dry tonnes |
2.0 |
6.3 |
2.7 |
5.1 |
5.1 |
| |
|
|
| (1) |
|
Ore mined does not include low grade ore |
| (2) |
|
Low grade ore contains 1.5 to 2.5% lead |
Magellan Production Ramp-up
The approval for the concentrate transport process from the Magellan Mine to the Port of Fremantle was received in August 2009 and subsequently 20,200 dry metric tonnes of stockpiled bagged concentrate was transported from site between September 2009 and March 2010. Once this approval had been received, plans were implemented to restart mining and processing operations at the Magellan Mine in early 2010. A number of key projects had been identified around the processing plant which were deemed critical to complete before the restart. These projects included: the repair and reline of the crusher feed bin; the repair and reline of the surge tank; and, commissioning of the pressure filter installed immediately prior to the 2007 shutdown. The focus of these projects was on ensuring a high level of plant availability during 2010 and 2011. Milling operations commenced on February 23, 2010.
For the year ended 2010, the mill treated approximately 874,000 dry metric tonnes of ore with an average grade of 6.8% lead. The plant recovered an average of 74% of the lead to produce approximately 68,000 dry metric tonnes of concentrate with an average grade of 65% lead. During the fourth quarter of 2010, the mill treated 316,000 dry metric tonnes of ore with an average head grade of 6.9% lead. The plant recovered an average of 78% of the lead, to produce approximately 25,900 dry metric tonnes of concentrate with an average grade of 65% contained lead, representing a marked improvement from the results of the third quarter of 2010. As shown in the table above, during the year, the Magellan Mine showed a steady improvement quarter over quarter in recoveries and concentrate production. Detailed quarterly production results can be obtained from the above production summary table.
During the first quarter of 2010, Magellan Metals extended the existing mining contract, with Western Australia-based Mining & Civil Australia Limited ("MACA") to restart the mining of the Magellan and Cano open pits and all future mining activities until December 31, 2014. MACA is a medium-sized, Australian Stock Exchange-listed mining contractor. Work commenced on March 1, 2010, with blasting activities recommencing on March 16, 2010. First quarter activities were primarily preparation work and waste removal with ore delivery to the mill feed pad commencing in April, 2010.
The power station was re-commissioned in January 2010 and has been operating efficiently since with very little downtime. In May 2010, Magellan Metals completed the purchase from Sept Pty Ltd. and Pacific Energy (KPS) Pty Ltd. (the "Vendors") of the on-site power station for a purchase price of A$1.6 million. The 5.6 megawatt power station, which had been leased to Magellan and operated by the Vendors prior to the purchase, comprises seven diesel generators with related equipment, systems and control room. The power station is now owned and operated by Magellan.
The second quarter of 2010 was characterized by a number of events of metallurgical instability as a result of higher mill throughputs and unanticipated high grade volatility. These events resulted in a number of plant stoppages and poor lead recoveries. The issues were caused by a number of factors, many of which were addressed early in the third quarter of 2010. As a number of projects were implemented throughout the quarter to address these issues it became clear that there was a key bottleneck issue with the concentrate thickeners and an interaction issue between the thickeners and the pressure filter which was causing lower than expected performance from the filter.
In July and August, the plant successfully performed a trial-run of the concentrate thickeners and flocculent addition in parallel. The result has been greater thickener throughput and higher, more reliable, concentrate density being fed to the pressure filters. An upgraded pressure filter feed pump was installed in November to complete the upgrade of the concentrate dewatering circuit to deliver the potential to filter approximately 145,000 dry metric tonnes of concentrate per annum with a moisture content of 8 to 8.5%.
Performance at the Magellan Mine continued to improve in the third quarter as key debottlenecking capital projects were implemented and the workforce gained more experience with this unique ore and processing plant. Changes to run-of-mine stockpiling implemented in August addressed issues with the grade volatility allowing more steady-state operation of the plant and an opportunity for the first phases of a number of recovery improvement projects.
The interaction between the concentrate thickeners and the filters was a continued ongoing area of focus and the subject of several projects in the fourth quarter. There was a planned shutdown of operations in November to replace the crusher liner, install isolation valves on the cyclone feed pumps and install a new filter feed pump of increased capacity. This increase in capacity led to a marked improvement in the cycle times required for presentation of material to the concentrate filter. Improvements were made to the thickener feed control and flocculent addition in the fourth quarter. These assisted in removing a process bottleneck and increasing plant stability.
Throughout the year a number of improvements have been made to the concentrate bagging process. By the fourth quarter the experienced bagging crew were able to bag and load containers at rates equivalent to full production. A semi-automated bagging machine design is being considered and upgraded dust control measures in the concentrate shed are scheduled for installation in 2011.
Magellan has now recruited its full complement of personnel, supplemented by contract labour for the bagging operations.
Operational Optimization
Work is continuing on mine scheduling optimization for the life of mine planning. The aim of this work is to improve the mining program to deliver lower mining and processing costs through a combination of blend optimization of mineralization, rock type, and grade, metallurgical testing to increase recoveries, reduced double handling; reduced non-productive equipment moves; and, identifying locations for in-pit waste dumping. Improved blasting practices are being implemented to reduce downstream crushing and grinding costs as well as minimizing costly crusher blockages.
Close spaced grade control drilling and grade sampling of blast holes using a portable x-ray florescence ("XRF") analyzer is expected to deliver improved mining grade control and reconciliation. This is expected to give greater ore grade predictability and therefore improve the mill feed blending. Blast hole XRF sampling is identifying low grade ore in blocks that have been earmarked as waste using the broader spaced grade control drilling.
Plans are being developed to convert the generator sets in the Company's wholly owned power station from diesel-fuelled to a cost-efficient natural gas/diesel blend. A gas pipeline was constructed in 2006 and 2007, connecting the Magellan Mine power station to the main Goldfields gas pipeline. Gas supplies until 2016 have been secured on long term contract at competitive prices. The conversion of the minesite power station to dual fuel is expected to significantly reduce power costs and carbon emissions.
Magellan Metals has implemented a best-practice concentrate handling system utilizing sealed and double-lined two tonne plastic bulk bags which are enclosed within locked shipping containers. The Company is now investigating ways to reduce the cost and improve the efficiency of the bagging process as well as exploit the opportunities offered by selling concentrate in this form.
The Company plans to examine methods in which to increase the mill and mine sizing to take advantage of economies of scale and improve the economics of the operations.
Other optimization projects being considered for 2011 include improvements in understanding of the grade versus recovery trade-off, addition of an on-site metallurgical laboratory, and a review of use, handling and transport opportunities to reduce reagent costs.
Production Outlook
Ivernia temporarily shutdown mining and processing operation at the Magellan Mine from January 5, 2011, until late February, 2011. Upon the resumption of operations the Company continued the ramp-up of production commenced in 2010. For additional information see the Company's 2010 Annual Information Form, dated March 30, 2011, at www.sedar.com.
For 2011, Ivernia expects to produce approximately 60,000 to 70,000 tonnes of lead contained in concentrate.
Capital Resources and Working Capital Requirements
On January 13, 2011, Sentient Executive GP III, Limited purchased 52.9 million common shares of Ivernia for gross proceeds of C$18.0 million. A full description of the transaction is available in the Company's Annual Information Form for the year ended December 31, 2010 filed on SEDAR at www.sedar.com.
As at March 25, 2011, Ivernia held unrestricted cash balances of approximately $17 million. While the Magellan Mine was not in production for a portion of the first quarter of 2011, at current lead price and expected production levels, Ivernia anticipates a return to positive cashflow and profitability in subsequent quarters and expects to continue improving its working capital and cash positions. In addition, Ivernia expects the cashflow from operating activities at the Magellan Mine will be sufficient to fund cash required for non-operating activities going forward, including its funding requirements for the Prairie Downs project. Ongoing cash flow from operating activities continues to be exposed to fluctuations in metal prices, production rates and the A$/US$ exchange rate.
2011 Technical Report - Magellan Mine
SRK Consulting (Australasia) Pty Ltd ("SRK") has prepared an independent National Instrument 43-101 ("NI 43-101") compliant technical report on the Magellan Mine entitled "Technical Report on the Magellan Lead Carbonate Mine, Wiluna, Western Australia", with an Effective Date of March 30, 2011 (the "2011 Technical Report"). SRK is a global mining consulting firm independent of Ivernia.
The 2010 Technical Report contains information on mineral resources and reserves, life of mine, permitting and financial analysis. The 2011 Technical Report will be filed by the Company in its entirety on SEDAR at www.sedar.com on March 30, 2011. For additional information see the Ivernia news release dated March 30, 2011 and entitled "Ivernia Announces Significant Increase in Mineral Resources and Reserves at the Magellan Mine".
Prairie Downs Project
Under the terms of an earn-in agreement announced by the Company on June 14, 2010, a wholly-owned subsidiary of Ivernia may acquire up to 80% interest in the Prairie Downs project ("Prairie Downs" or the "Project") from Australian Stock Exchange listed Prairie Downs Metals Ltd. ("PDML"). The Project, located 60 kilometers ("km") southwest of Newman in Western Australia, is located within 250 km of the Magellan Mine.
The key features of Ivernia's earn-in agreement with PDML include:
- An option in favour of Ivernia to purchase a 60% interest in the Project for A$10 million in cash or its shares (at Ivernia's election) exercisable by Ivernia after expenditure by it of A$3 million in 18 months (subject to the condition that a minimum expenditure of A$2 million must be spent in the first 12 months) or A$5 million within 36 months.
- Upon the purchase by Ivernia of a 60% interest in the Project, the formation of an unincorporated joint venture ("Prairie Downs Joint Venture") between it and PDML with respect to the Project.
- The ability for Ivernia to increase its 60% interest in the Project to 80% by spending a further A$5 million on exploration within two years of earning the initial 60% interest.
- If either party fails to contribute its proportion of costs, its interest in the Prairie Downs Joint Venture will dilute proportionally until it is 2.5%, at which point the Prairie Downs Joint Venture will convert to a free carried interest.
- If the diluting party's interest falls to 5%, the other joint venture participant has a right to acquire that interest at fair market value.
Previous drilling at the project has concentrated only on the known Prairie Deposit ("PD"), with limited work on other deposits in the belt or on associated mineralization. Ivernia has committed to an initial A$2 million exploration program of geochemical sampling, geological mapping, and drilling to be completed by June 2011. A phase one drilling program ("Phase One") commenced in the third quarter of 2010, with 3,258 meters drilled in 30 reverse circulation ("RC") drill holes. Phase One was designed to test geological, geochemical and geophysical targets primarily outside of the PD. The results of the program are presented in Ivernia's news release dated January 20, 2011 filed on SEDAR at www.sedar.com.
A total of 16 RC holes were drilled at the Wolf prospect in Phase One, located 2 km northwest of the PD. Broad zones of low grade zinc mineralisation were intersected, including significant high grade intercepts of zinc, lead, and silver which are planned to be followed up in the phase two drill program ("Phase Two") expected in the second quarter of 2011. The remaining 14 RC holes were drilled in five other target areas, namely the Camp Lead, Prairie South, Prairie East, Prairie Chert and Hyena prospects. Although strong alteration was noted in a number of holes in these five areas, no anomalous results were reported and no further work is planned in these other areas at present.
A new high-priority target area identified by surface work is the West Hyena prospect, located 7 km southeast of the Wolf prospect. This is a target area that the Company anticipates drill testing in Phase Two.
The technical information in this news release related to Prairie Downs is based upon information compiled by Bruce Hooper, who is a member of the Australian Institute of Geoscientists. Mr. Hooper is an employee of Ivernia, a Qualified Person within the meaning of National Instrument 43-101 and has visited the Project. Mr. Hooper has consented to the inclusion in this news release of the matters discussed. For information on Quality Assurance/Quality Control procedures for Prairie Downs and a summary of results from Phase One see the Ivernia news release dated January 20, 2011.
Conference Call and Webcast
Ivernia invites you to join its fourth quarter and year end 2010 conference call on Thursday, March 31 at 10:00 am (EST). Participants may access the call by dialling:
| Phone: 1 800 901 5247 (Canada and USA) or +1 617 786 4501 (International) |
| * Participant passcode is 52182531 |
For those unable to participate in the conference call or webcast at the scheduled time, a telephone replay will be available until April 14, 2011 by dialing:
| Phone: 1 888 286 8010 (Canada and USA) or +1 617 801 6888 (International) |
| * The playback passcode is: 51390077 |
A webcast replay will remain available until April 14, 2011 on the Investors section of the Company's website at www.ivernia.com.
Management's Discussion and Analysis and Consolidated Financial Statements
Ivernia's Financial Statements and Management's Discussion and Analysis for the quarter and year ended December 31, 2010 were filed today and are available on the Ivernia website at www.ivernia.com or SEDAR at www.sedar.com.
About Ivernia
Ivernia is an international base metal mining company and the owner and operator of the Magellan Mine, located in Western Australia.
Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: future targets and estimates for production, capital expenditures, operating costs, cash costs, mineral resources, mineral reserves, life of mine, recovery rates, grades and prices, business strategies and measures to implement such strategies, competitive strengths, estimated goals and plans for Ivernia's future business operations and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances.
However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions such as, matters relating to ramping up mining and milling throughput and operations, regulatory compliance and approvals, metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceedings and litigation, the fact that the Company has a single mineral property, resources and reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, dependence on key personnel, constraints on cash flow, the nature of mineral exploration and development, matters related to the order to cease transport of lead concentrate and matters relating generally to the transportation of lead carbonate; matters related to the Esperance settlement and shipments through the Port of Fremantle; implications stemming from the Esperance inquiry; and common share price volatility and the dilution of the Company's common shares. Additional factors are discussed in the Company's most recent Annual Information Form and Management's Discussion & Analysis filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.
