|Mon May 9, 2011|
Aurcana reports record 2010 results
|Aurcana Corporation ("Aurcana" or the "Company") is pleased to report its audited financial results for December 31, 2010. 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|
The Company had an increase in earnings from mining operations to $10.7 million compared of $4.2 million in 2009. Net earnings had a loss of $6.1 million compared to a net profit of $3.9 in 2009. The loss on the trading activity of $5.2 million was due to the low overall price recognized for the ounces delivered to Silver Wheaton under the now terminated silver stream purchase agreement as compared to the cost of acquiring the silver certificates at market and the one time loss of $7.7 million on the termination of the agreement. Loss per share was $0.04 compared to earnings of $0.03 per share for the previous year.
The company also experienced only a $1.5 million foreign exchange gain in the current year as compared to a $7.7 million gain in the prior year, which also explains the swing from a net profit of $3.9 million in 2009 to a loss of $6.1 million in 2010.
During the year ended December 31, 2010, the Company realized revenues from the sale of 11,821 tonnes of copper concentrate (2009- 9,318 tonnes), 5,273 tonnes of zinc concentrate (2009 -- 3,860 tonnes) and 808,921 ounces of silver (2009 -- 746,493 ounces) for total net revenues of $26.9 million (2009 - $16.1 million). These figures exclude sales resulting from loss of trading activities, which were necessitated by the contract related to the Company's deferred revenue.
The average price for sales of copper, zinc and silver during the period were Cu - $3.4198 (2009: $2.3422) per pound, Ag - $20.238 (2009: $14.674) per ounce and Zn $0.9792 (2009: $0.7525) per pound. Metal prices, were a significant factor in the increased revenue of the Company.
During 2010 Aurcana continued to build on the advances of its La Negra Mine. Metal concentrate prices continued to improve, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company continued to advance the permitting process at Shafter and initiated development of the Shafter mine. Aurcana continues to focus on its future growth.
To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2010-Dec31-FS.pdf
To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2010-Dec31-MDA.PDF
On April 19, 2011, Aurcana commenced trading today on the OTC market's prestigious tier, OTCQX International. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
The Company trades in the United States on OTCQX under the symbol "AUNFF".
About Aurcana Corporation:
The Shafter Silver Mine is scheduled to start up production within 12 months producing 3.8 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.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Gary Lindsey, Corporate Relations
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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