Malaga Reports Income of $1.1 Million From Mining Activities
Published : March 31, 2011

- Increase in production capacity from 250 tonnes per day (tpd) to 500 tpd

- Sales achieve a record level of 70,407 metric ton units (MTU)

- Income from mining activities totals $1.1 million compared to a $2.5 million loss in 2009

- Cash flow from operations of $1.2 million compared to negative cash flow of $1.2 million in 2009

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MONTREAL, QUEBEC--(Marketwire - March 31, 2011) - Malaga Inc. (News - Market indicators) ("MLG") is pleased to report that it has filed its audited financial statements for the year ended December 31, 2010. The management discussion and analysis and audited financial statements can be found on the Company's website ( and on SEDAR ( Amounts are in Canadian dollars unless otherwise indicated.

Sales for the year totalled $14.8 million ($11.1 million in 2009), an increase of 33% due to the sale of copper by-product in the amount of $2.0 million, a 14% increase in production output and a 26% appreciation in the APT (ammonium paratungstate) price, the reference price for Malaga's tungsten concentrate sales. A lower cash cost of sales per MTU ($129 vs $146) also contributed to the increase in the income from mining activities for 2010 which achieved a record level of $1.2 million compared to a $2.5 million loss in 2009.

"We are very pleased with our 2010 results. The record production level, significantly higher APT price and $17/MTU reduction in our cash costs all contributed to our $1.1 million in income from mining activities. In light of Malaga's plans to increase tungsten production in 2011 and the steady rise in the APT market price, which is currently close to US $400, we are forecasting an excellent year in 2011, and profitability as of the first quarter," said Jean Martineau, Malaga's Chairman of the Board and Chief Executive Officer.

The following table provides a summary of Malaga's record financial performance in 2010 in comparison with 2009:

  2010   2009    
Tungsten production (in MTU) 70,407   62,054   +13%
Sales ($ millions) 14.8   11.1   +33%
Cash cost of sales ($ per MTU) 129   146   -13%
Income from mining activities ($ millions) 1.1   (2.5 ) n/a
Net loss ($ millions) (0.9 ) (7.6 ) n/a
Cash flow ($ millions) 1.2   (1.2 ) n/a
Average APT reference price (per MTU)* US $240   US $190   +26%
*      The APT reference price reached a new record of close to US $400 as at March 29, 2011.

2011 Outlook

Malaga has an installed plant capacity of 500 tpd at the plant but the mine is unable to supply the plant with ore at that rate. The Company has introduced a capital expenditure program to increase mine production capacity as rapidly as possible to reach 600 tpd by the end of the 2011. This increase would not require significant capital expenditure at the plant.

Malaga is planning to invest $3 to $4 million for exploration and development at the Pasto Bueno property in 2011. This investment should lead to an increase in reserves and resources to support the increase plant production capacity and demonstrate the potential of the property. The mantos will be the main focus of the 2011 exploration program, which should be announced sometime in the second quarter.

Tungsten Supply and Demand

Current market conditions have demand for tungsten growing with no new significant production capacity increases outside of China envisioned before at least 2014. The APT price has risen 115% since the beginning of 2010, from US $185 in 2010 to nearly US $400 today. The Company believes that market prices will remain strong because market demand currently exceeds production capacity. Demand is also growing as there is presently no replacement product for tungsten in the market. Finally, tungsten is one of 14 critical raw materials for the European Union, according to a European Commission report published in June 2010, which reinforces the notion of a strategic metal and the supply risk.

2011 Objectives

Malaga's main objectives for 2011 are to:

  • Accelerate mine development to support the increase plant production capacity
  • Increase mineral reserves and resources
  • Increase plant production capacity to 600 tpd by the end of 2011 and production output to 80,000 MTU in 2011
  • Generate net income
  • Decrease cash cost of sales per MTU by more than 10% to from US $127 to US $115

Meeting of Shareholders

The annual general meeting of Malaga Inc. will be held at 10 a.m. on June 16, 2011, in Montreal, at 1 Place Ville Marie, 38th Floor.


Malaga Inc. owns and operates a mine in Peru and is one of the few producers of tungsten outside of China. Malaga is a low cost producer due to the availability of hydroelectric power at its Pasto Bueno property in Peru, which has a current production capacity of 500 tpd. Future plans are to increase production and explore the property to increase reserves and resources.


Certain statements in the foregoing may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause Malaga's actual results, performance or achievements or industry results to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release.

Malaga Inc.
Jean Martineau
Chairman of the Board and Chief Executive Officer
Malaga Inc.
Pierre Monet
Sun International Communications
Nicole Blanchard
Corporate Strategy and Investor Relations
Data and Statistics for these countries : China | Peru | All
Gold and Silver Prices for these countries : China | Peru | All

Malaga Inc.

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Malaga is a gold and tungsten producing company based in Canada.

Malaga holds various exploration projects in Peru.

Its main asset in production is PASTO BUENO in Peru.

Malaga is listed in Canada and in United States of America. Its market capitalisation is CA$ 918 375 as of today (US$ 881 456, € 674 490).

Its stock quote reached its highest recent level on June 20, 2008 at CA$ 0.49, and its lowest recent point on July 15, 2013 at CA$ 0.01.

Malaga has 183 675 000 shares outstanding.

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Annual reports of Malaga Inc.
2007 Annual Report
Nominations of Malaga Inc.
12/2/2011Announces Appointment of Pierre Monet as President and Chief...
6/23/2011Appoints Three New Board Members
7/8/2008appoints Paul Cregheur to the Board of Directors
6/26/2008appoints three new Directors
12/20/2007Appoints a new board member
Financials of Malaga Inc.
4/3/2013Publishes Year-End Results
8/22/2008Q2 2008 financial results and outlook for 2008
4/14/2008Reports its year end financial results for 2007
11/15/2007reports net earnings in its third quarter 2007
8/16/2007Reports $6,749,432 revenue from the sale of gold and tungste...
5/23/2007reports sales of $2.3 million of tungsten concentrate for th...
4/13/2007files its audited consolidated financial statements and anno...
Project news of Malaga Inc.
5/31/2011(Pasto Bueno)Announces a $1.5 Million Diamond Drilling Campaign in the Co...
4/24/2008(Pasto Bueno) Pasto Bueno: Commissioning of the first phase of the Pasto ...
3/3/2008(Pasto Bueno)discovers new tungsten mineralized vein structures at Pasto ...
11/13/2007(Pasto Bueno) Pasto Bueno: Drilling Reveals New Tungsten Mineralized Zone...
5/15/2007(Pasto Bueno)commercial production begins at the Pasto Bueno mine
Corporate news of Malaga Inc.
6/6/2013Files a Notice of Intention to Make a Proposal Under the Ban...
5/21/2013Publishes Q1 Results
4/9/2013Sells Its Hydro Electric Power Plant
11/9/2012Update on Mining Operations
11/9/2012Update on Mining Operations
10/22/2012(Pasto Bueno)Pasto Bueno Process Plant in Care and Maintenance
10/22/2012(Pasto Bueno)Pasto Bueno Process Plant in Care and Maintenance
8/15/2012Announces Its Q2 Results
5/9/2012Maintains Profitability and Generates Cashflow From Operatin...
4/17/2012to Recover Additional Tungsten From Its Tailings Pond
3/28/2012Improves Profitability and Generates a Net Income of $5.6M a...
2/27/2012(Pasto Bueno)Increases Its Resources by More Than 140% and Its Reserves b...
2/16/2012to Build New Hydroelectric Plant in Peru
1/9/2012(Pasto Bueno)Announces Appointment of Fernando Pajuelo Rincon as General ...
10/4/2011Joins OTCQX-"MLGAF"
8/15/2011Reports Financial Results for Second Quarter 2011: Generates...
6/17/2011Generates a Net Income of $0.8 Million and an EBITDA of $1.3...
5/20/2011Says it is Not Aware of Any Undisclosed Development That Wou...
4/11/2011Reports Record Sales of US $4.5 Million in the First Quarter...
3/31/2011Reports Income of $1.1 Million From Mining Activities
10/30/2007 Announces the Final Distribution Ratio of Dynacor Gold Mine...
9/26/2007senior management changes within the company
7/17/2007Change of corporate name and trading symbol (previously Dyna...
4/17/2007has 100% ownership of its Acari property in Peru
3/21/2007signs an engagement letter of up to CA$5 million with D&D Se...
2/20/2007To Spin Off Gold Assets To Shareholders
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