|Wed May 5, 2010|
Aurcana Reports $3.8M Net Earnings
|Aurcana Corporation ("Aurcana" or the "Company") is pleased to report its audited financial results for December 31, 2009 and its fourth quarter ended December 31, 2009. The summary of the selected financial information should be read in conjunction with the audited financial statements and the related management's discussion and analysis dated April 30, 2010 together referred to as the "Financial Statements", which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.aurcana.com). All figures are in Canadian dollars unless otherwise noted.|
2009 Financial Statements Highlights:
The Company had net earnings of $3.8 million and comprehensive earnings of $4.1 million for 2009 compared to a loss and comprehensive loss of $24.1 million in 2008. Excluding foreign exchange and non-recurring gains and losses and other income, the earnings from operations was $3.8 million as compared to a loss of $10.9 million in 2008. Earnings per share were $0.03 per share compared to a loss of $0.24 per share for the previous year.
During the year ended December 31, 2009, the Company realized revenues from the sale of 10,335 tonnes of copper content (2008- 9,957 tonnes), 4,315 tonnes of zinc content (2008 -- 3,119 tonnes) and 746,493 ounces of silver (2008 -- 451,955 ounces) for total net revenues of $16.1 million (2008 - $8.8 million). These figures exclude sales resulting from deferred revenue.
The average price for sales of copper, zinc and silver during the period were Cu - $2.34 Ag - $14.67 and Zn $0.75. Metal prices, were a significant factor in the increased profitability of the Company.
As a result of the rise of the Canadian dollar, the Company had a foreign exchange gain of $7.7 million year-to-date and a gain of $1.2 million on the restructuring of debt, primarily since much of the debt and revenue of the Company are denominated in US dollars. The foreign exchange gain effectively reverses a substantial portion of the foreign exchange loss incurred at the 2008 year end; however the Company remains exposed to foreign currency fluctuations.
The most significant items during the year were:
On June 29, the Company announced the results of the pre-feasibility study. The highlights of the report were:
Aurcana continues to advance the permitting process and development of Shafter.
During 2009 Aurcana continued to build on the advances of its La Negra Mine which started in the second quarter. Metal concentrate prices continued to improve, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company continues to advance the permitting process at Shafter and with the recent announcement of its Senior Secured Note Financing (See News Release dated April 23, 2010) Aurcana continues to focus on its future growth.
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start up production within 18 months of securing permits and financing, producing 3.9 million ounces silver in the first year. It has a NI 43-101 measured and indicated resource of 24.6 million ounces of silver (2,900,000 tons at 8.48Ag opt) and an inferred resource of 22.8 million ounces of silver (2,167,000 tons at 10.52 Ag opt) using a 4.0 ounce per ton cut off. The 92% owned La Negra silver-lead-zinc-copper mine is on target to increase production to over 2 million ounces Silver Equivalent annually when expansion to 1,500 t/d, is completed by mid year. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable. Ron Nichols, P.Eng. a Director and Senior Vice President for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Corporate Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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