Business & Finance
Tue, June 8, 2010Mon, June 7, 2010Sun, June 6, 2010Sat, June 5, 2010Fri, June 4, 2010Thu, June 3, 2010Wed, June 2, 2010Tue, June 1, 2010Mon, May 31, 2010Dia Bras Releases First Quarter 2010 Results
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Published in Business and Finance on Thursday, June 3rd 2010 at 9:20 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
MONTREAL, QUEBEC--(Marketwire - June 3, 2010) -Dia Bras Exploration Inc. (TSX VENTURE:DIB) ("Dia Bras") (the Company) announces the results for the three-month period ended March 31, 2010. All currency in this release is in Canadian dollars unless otherwise indicated. For a full explanation of results, the unaudited Interim Consolidated Financial Statements, Management Discussion & Analysis of the Company and mining statistics, please visit the Company's website at [ www.diabras.com ] or on SEDAR at [ www.sedar.com ].
Daniel Tellechea, President and CEO, commented, "We are pleased with the results for the first quarter of 2010 and the turn around this represents from very challenging circumstances encountered a year ago. We are excited to be moving forward with the construction of the Bolívar Mill and to having completed the warrants exercises and the Rights Offering which together provide $20,362,494 for the construction of the Bolívar Mill and other capital programs Dia Bras has for this year."
Highlights
Q1 2010 Highlights
- The Company shows positive net working capital, including cash, of $4.9 million at March 31, 2010 and $2.8 million at December 31, 2009, compared with a negative net working capital of $5.6 at March 31, 2009, showing a positive change of $10.5 million for the twelve months ended March 31, 2010.
- The Company had Adjusted EBITDA(1) of $1.736 million for the three months ended March 31, 2010 and of $1.944 million for the year ended December 31, 2009, compared with ($1.187) million for the three months ended March 31, 2009.
- Operating cash costs(2) were US$83.92 per metric tonne milled in the first quarter of 2010 as compared to US$66.85 for the first quarter of 2009 and US$91.10 during the year ended December 31, 2009 for the Bolívar pilot-mining activities, amounting to a 25.5% increase from the first quarter of 2009. This increase in operating cash costs from the first quarter of 2009 is mostly due to the change in the exchange rate for the Mexican peso to US dollar (11.0%) and to the general inflation from 2009 to 2010 (4.9%), as the tonnage milled in each of these two quarters was very similar.
- Bolívar Mine sales were $5,956,000 for the first quarter of 2010, up 2.4% compared with $5,813,000 in the fourth quarter of 2009, and compared with net sales of $17,037,000 for the year ended December 31, 2009. The increase from the fourth quarter of 2009 is primarily due to an increase in average sales prices net of a 14% lower copper grade.
- During the three months ended March 31, 2010, copper production decreased 5.4% compared to 2009. This decrease was mainly due to lower head grades. In the first quarter of 2010, zinc production increased by 4.3% over the same period of 2009 mainly due to an increase in head grades to the mill.
- By the end of the first quarter of 2010, the Company had installed a new electric line to the plant site, commenced site clearing for the plant, started the search for process equipment to be purchased, completed engineering studies for the new facilities to be constructed and initiated the work for the eventual water supply for the Bolivar Mill. .
| (1) | "Adjusted EBITDA" is a non-GAAP measure in which standard EBITDA (earnings before interest expense, taxes, and depreciation and amortization) is adjusted for stock-based compensation expense and nonrecurring items. |
| (2) | "Operating Cash Costs" is a non-GAAP measure defined as the costs of mining, transport to the mill and milling divided by the tonnes milled. |
ABOUT DIA BRAS
Dia Bras is a Canadian exploration mining company focused on precious and base metals in Chihuahua State and other areas of northern Mexico. The Company is committed to developing and adding value to its most advanced assets – the Bolívar copper-zinc project and the Cusi silver mining camp. The Company's shares trade on the TSX Venture Exchange under the symbol "DIB".
Forward-looking Statements:
This news release contains certain statements that constitute forward-looking statements. Forward-looking information includes, but is not limited to, information concerning Dia Bras' 2009 guidance respecting pilot-mining production and potential plans for Bolivar and Cusi projects, as well as the acquisition of EXMIN Resources. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in the mining industry including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties or shortages of labour or interruptions in production; actual rocks mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of pilot-mining activities and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties. Refer to "Risk and Uncertainties".
Forward-looking information is, in addition, based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long-term price of zinc, copper, lead and silver; the regulatory and governmental approvals for the Company's projects and other operations on a timely basis; access to financing, appropriate equipment and sufficient labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Although the forward-looking statements contained in this MD&A are based upon what management believes to be reasonable assumptions, the Company cannot guarantee that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this MD&A, and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except as required under applicable securities regulations.
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 news release.
