All amounts are in CA dollars, unless otherwise indicated.
Unaudited
LA MANCHA REPORTS ITS THIRD QUARTER RESULTS
THIRD QUARTER 2010 HIGHLIGHTS
- Net earnings of $4.9
million
- Production of 27,317 ounces
of gold
- Cash
flow from operating activities of $9.6 million
- Cash
and short-term investments grow to $25.1 million
- La
Mancha�s year end gold production expected to exceed 130,000 ounces
Paris, France - November 9, 2010
- La Mancha Resources
Inc. (TSX:
LMA, hereinafter �La Mancha� or the �Company�) is pleased to report that it
produced a total of 27,317 ounces of gold in the third quarter of
2010. This compares to gold production of 24,439 ounces in the same
quarter last year. The increase is the result of higher production at
both the Frog�s Leg and Hassa� mines and the
start-up of the White Foil mine, which more than compensated for lower Ity mine production. It should also be noted that
production is expected to significantly increase in the fourth quarter of
2010 in light of the cyclical volume effect of the Company�s Australian
toll-processing schedule.
Dominique
Delorme, President and CEO of La Mancha, stated: �With nearly 92,000 ounces
of gold already produced in the first nine months of the year, we can now
say that 2010 is shaping up to be a great year for La Mancha. It is,
however, important to note that our results still do not fully reflect
our achievements. With a massive fourth quarter Australian toll-milling
campaign, we expect to boost our fourth quarter Australian gold
production to approximately 28,000 ounces of gold. Once combined with our
ongoing African production, La Mancha is set to increase its production
to nearly 40,000 ounces of gold in the last quarter of the year,
representing a gold production in excess of 130,000 ounces for the year.�
Consolidated
cash costs for the third quarter of 2010 were US $687 per ounce of gold
compared to US $422 in the corresponding period of 2009. Management is
confident that the projected significant fourth quarter production
increase at the Frog�s Leg mine should have a positive impact on cash
costs in the fourth quarter of 2010.
Despite a
higher cost structure, increased gold production and higher gold prices
helped La Mancha generate $9.6 million in cash flow from operating
activities in the third quarter of 2010, compared to $8.8 million in the
corresponding quarter of 2009. As of September 30, 2010, the Company was
debt-free with a strong cash and short-term investments position of $25.1
million. This compares to cash and short-term investments of $21.5
million and a corporate debt of $13.3 million at the same date last
year.
Mr. Delorme
added: �With a strong cash position, no debt, consolidated cash flow from
operations of nearly $40 million just nine months into the year and what
is bound to shape up as a solid fourth quarter, we are strategically
positioned to finance our growth strategy.�
La Mancha�s
third quarter revenues rose to $32.3 million this year from $28.1 million
last year. Net earnings for the third quarter of 2010 were $4.9 million,
compared to $3.0 million in the third quarter of 2009. The 2009 figure
includes a net loss of $1.3 million from the disposition of financial
securities.
La Mancha is
pleased to report record results for the nine-month period ended
September 30, 2010, with net earnings of $16.6 million, cash flow from
operating activities of $38.2 million and total attributable gold
production of 91,827 ounces of gold. This compares to net earnings of
$12.6 million, cash flow from operating activities of $26.4 million and
total attributable gold production of 70,710 ounces of gold for the same
period of 2009.
THIS
PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN
PDF FORMAT.
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 Stock
Exchange (TSX) under the symbol �LMA�. More information on the Company
can be found on its website at www.lamancha.ca.
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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
production and profitability, production targets and timetables;
statements regarding an expected increase in Australian toll-milling
capacity and its positive impact on La Mancha�s fourth quarter
production and cash costs; statements regarding the Frog�s Leg mine�s
ore mill schedule and grades; statements regarding White Foil�s
production and the possibility to treat its stockpiled ore at the
Greenfields treatment plant; statements regarding the resumption on
White Foil toll-milling in the first quarter of 2011; statements
regarding the future production level of the quartz line in Sudan;
statements regarding the positive impact of Ity�s
new leaching pads on production and the possibility to mine high-grade
clay ore once the rainy season ends. 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 statements 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.
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