(Expressed in US dollars except where noted as
C$)
TORONTO,
Aug. 27, 2014 /CNW/ - Red
Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger")
today reported its financial and operating results for the three
and six months ended June 30, 2014.
This press release should be read in conjunction with the Company's
unaudited Financial Statements for the three and six months ended
June 30, 2014 and Management's
Discussion and Analysis ("MD&A") for the corresponding period,
available on the Company's website at www.redtigermining.com and on
SEDAR at www.sedar.com.
SECOND QUARTER HIGHLIGHTS
- Comex Grade 1 Copper cathodes production of 1,812 tonnes for
the three months ended June 30,
2014
- Copper sales of $12,466,706 for
the three months ended June 30, 2014
at an average realized price(1) of $3.12 per pound
- Total cash costs per copper pound(1) of $1.65 and average realized margin(1)
of $1.47 per pound for the three
months ended June 30, 2014
- Net earnings of $144,871 or
$0.00 per share for the three months
ended June 30, 2014
- Adjusted EBITDA(1) of $5,349,374 or adjusted EBITDA per
share(1) of $0.05 for the
three months ended June 30, 2014
- Cash of $2,289,449 as at
June 30, 2014
(1)
|
"Total cash costs per
pound", "Average realized price", "Average realized margin",
"Adjusted EBITDA" and "Adjusted EBITDA per share" are non-IFRS
financial performance measures with no standard meaning under IFRS.
Refer to the "Non-IFRS Financial Performance Measures" section of
this MD&A for reconciliations of these non-IFRS
measures.
|
FIRST HALF HIGHLIGHTS
- Comex Grade 1 Copper cathodes production of 3,431 tonnes for
the six months ended June 30,
2014
- Copper sales of $23,422,405 for
the six months ended June 30, 2014 at
an average realized price(1) of $3.10 per pound
- Total cash costs per copper pound(1) of $1.50 and average realized margin(1)
of $1.60 per pound for the six months
ended June 30, 2014
- Net earnings of $85,411 or
$0.00 per share for the six months
ended June 30, 2014
- Adjusted EBITDA(1) of $9,835,484 or adjusted EBITDA per
share(1) of $0.10 for the
six months ended June 30, 2014
- Cash of $2,289,449 as at
June 30, 2014
(1)
|
"Total cash costs per
pound", "Average realized price", "Average realized margin",
"Adjusted EBITDA" and "Adjusted EBITDA per share" are non-IFRS
financial performance measures with no standard meaning under IFRS.
Refer to the "Non-IFRS Financial Performance Measures" section of
this MD&A for reconciliations of these non-IFRS
measures.
|
Subsequent to June 30, 2014
Events
- On May 14, 2014 the Ontario
Securities Commission issued a management cease trade order (the
"MCTO"), as a result of the Corporation not filing its audited
financial statements for the year ended December 31, 2013, and the management's
discussion and analysis relating to the audited annual financial
statements for the year ended December 31,
2013 within the prescribed period. The MCTO imposed
restrictions on trading in the Corporation's securities by its
Chief Executive Officer, Mr. Robert
Wunder, and its Chief Financial Officer, Mr. David Lurie. On July 31,
2014, the Company filed is audited financial statements for
the year ended December 31, 2013, the
unaudited financial statements for the three months ended
March 31, 2014 and MD&A for the
corresponding periods. On August 6,
2014, the MCTO expired.
- Under the DB loan agreement, the Company was in breach of the
loan covenant that requires the Company to provide DB the audited
consolidated financial statements for the year ended December 31, 2013 and the condensed interim
consolidated financial statements for the three month period ended
March 31, 2014. Under the loan
agreement, the Company is required to file the audited consolidated
financial statements within 120 days of year-end and the condensed
interim consolidated financial statements within 60 days of
quarter-end. As a result, the Company obtained a waiver from DB,
which extended the delivery date of filing the audited consolidated
financial statements for the year ended December 31, 2013 to July
31, 2014 and the condensed interim consolidated financial
statements for the three month period ended March 31, 2014 to August
31, 2014. On July 31, 2014,
the Company provided DB with the audited consolidated financial
statements for the year ended December 31,
2013 and the condensed interim consolidated financial
statements for the three month period ended March 31, 2014.
- On August 6, 2014, the Company
received a follow up demand letter from Unique Goals, requesting
payment of principal and interest on the September 2012 Shareholder loan be paid
immediately. Unique Goals had previously sent a demand letter on
August 30, 2013, requesting payment
of principal and interest to be paid immediately. The terms
and conditions in the follow up letter have not changed from the
original letter received on August 30,
2013.
- On August 8, 2014, the Company
granted options to the CEO of the Company to purchase 2,000,000
common shares of the Company, at a strike price of $0.18 and having a term of five years.
- On August 18, 2014, the Company
granted options to certain directors, officers and employees to
purchase 1,865,000 common shares of the Company, at a strike price
of $0.18 and having a term of five
years.
Restatement
The Company has reassessed the accounting for the following:
- its derivative financial instruments, relating to the copper
collar swap derivative and copper call option derivative and
derivative asset. The Company had previously not recorded the fair
value of these derivative financial instruments for the three
months ended March 31, 2013. The
Company also had previously not recorded the fair value of the
derivative asset for the three and six months ended June 30, 2013 and the three and nine months ended
September 30, 2013. As a
result, the Company's consolidated statement of financial position
and consolidated statement of operations and comprehensive earnings
(loss) did not reflect the appropriate fair value liability and
gains (losses) for the related periods. This has been corrected
retrospectively in accordance with IAS 8 - Accounting Policies,
Changes in Accounting Estimates and Errors, resulting in the
adjustment of prior year financial information.
- On September 30, 2013, the
Company reassessed the timeline to repay the principal and cash
interest to Gerald Metals. As of December
31, 2012, management had estimated that the repayment would
occur on June 30, 2014, however,
after reviewing the Company's estimated future monthly cash flows,
it has determined that the repayment of principal debt and cash
interest will occur on May 31, 2016,
one month after the DB loan is repaid at which point the Gerald
Metals Debt is no longer subordinated to the DB loan. As a result,
the Company's consolidated statement of financial position and
consolidated statement of operations and comprehensive earnings
(loss) did not reflect the appropriate Gerald Metals loan liability
and gains (losses) for the three and nine months ended September 30, 2013. This has been corrected
retrospectively in accordance with IAS 8 - Accounting Policies,
Changes in Accounting Estimates and Errors, resulting in the
adjustment of prior year financial information.
- The Company had incorrectly capitalized certain expenditures
during the three and six months ended June
30, 2013. As a result, the Company's consolidated statement
of financial position and consolidated statement of operations and
comprehensive earnings (loss) did not reflect the appropriate
carrying values and gains (losses) for the three and six months
ended June 30, 2013. This has been
corrected retrospectively in accordance with IAS 8 - Accounting
Policies, Changes in Accounting Estimates and Errors, resulting
in the adjustment of prior year financial information.
- On declaring commercial production on July 1, 2013, the Company had incorrectly
capitalized certain expenditures during the three and nine months
ended September 30, 2013 and adjusted
the inventory recovery rates from 78% to 75% as at June 30, 2013 and September 30, 2013, which resulted in restatement
of accounting for inventory accounts. As a result, the Company's
consolidated statement of financial position and consolidated
statement of operations and comprehensive earnings (loss) did not
reflect the appropriate carrying values and gains (losses) for the
three and nine months ended September 30,
2013. This has been corrected retrospectively in accordance
with IAS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors, resulting in the adjustment of prior year
financial information.
Selected Operational and Financial Information
|
|
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
OPERATING
RESULTS
|
|
|
|
|
|
|
|
Mining
|
|
|
|
|
|
|
|
Ore mined
|
tonnes
|
283,480
|
331,465
|
293,355
|
248,342
|
230,432
|
185,742
|
Waste rock mined and
removed
|
tonnes
|
1,343,687
|
1,297,719
|
997,378
|
1,333,793
|
1,047,433
|
821,973
|
Total
mined
|
tonnes
|
1,627,167
|
1,629,184
|
1,290,733
|
1,582,135
|
1,277,865
|
1,007,715
|
Waste-to-ore
ratio
|
|
4.7
|
3.9
|
3.4
|
5.4
|
4.5
|
4.4
|
Average grade of
mined ore
|
total
copper
|
1.16%
|
0.91%
|
0.84%
|
0.96%
|
1.25%
|
0.84%
|
|
|
|
|
|
|
|
|
Crushing and
Stacking
|
|
|
|
|
|
|
|
Ore crushed and
stacked
|
tonnes
|
279,970
|
319,457
|
292,329
|
241,599
|
230,326
|
181,992
|
Average grade of
stacked ore
|
total
copper
|
1.29%
|
1.03%
|
0.97%
|
0.96%
|
1.50%
|
0.99%
|
|
|
|
|
|
|
|
|
Copper cathodes
produced
|
tonnes
|
1,812
|
1,619
|
1,784
|
1,536
|
1,108
|
949
|
|
|
|
|
|
|
|
|
FINANCIAL
RESULTS
|
|
|
|
|
|
|
|
Copper
sales(1)
|
$
|
12,466,706
|
10,955,699
|
12,884,804
|
10,990,682
|
-
|
-
|
Production
costs
|
$
|
6,155,323
|
4,058,486
|
6,861,256
|
2,329,048
|
-
|
-
|
Net earnings
(loss)
|
$
|
144,871
|
(59,460)
|
(5,121,019)
|
3,014,042
|
(350,792)
|
1,464,345
|
Total cash costs per
copper pound(2)
|
$/pound
|
1.65
|
1.33
|
1.78
|
1.12
|
-
|
-
|
Average realized
price(2)
|
$/pound
|
3.12
|
3.07
|
3.28
|
3.24
|
-
|
-
|
Average realized
margin(2)
|
$/pound
|
1.47
|
1.74
|
1.50
|
2.12
|
-
|
-
|
|
|
(1)
|
Prior to the Company
declaring commercial production on July 1, 2013, all previous
revenues were credited against capitalized project
costs.
|
|
|
(2)
|
Refer to the section
on Non-IFRS Financial Performance Measures at end of the press
release. Reconciliation of these measures is described in the
MD&A.
|
|
|
(3)
|
Total cash costs,
average realized price and average realized margin are calculated
on post-commercial pounds sold only.
|
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this press
release, including "total cash cost per copper pound", "average
realized price", "average realized margin", "adjusted EBITDA" and
"adjusted EBITDA per share". The Company believes these measures,
in addition to conventional measures prepared in accordance with
IFRS, provide investors an improved ability to evaluate the
underlying performance of the Company. The non-IFRS measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers.
Refer to pages 10 through 12 of the Company's MD&A for the
six months ended June 30, 2014 for a
reconciliation of these measures.
Forward-Looking Information
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information is based on
plans, expectations and estimates of management at the date the
information is provided and is subject to certain factors and
assumptions, including, that the Company's financial condition and
development plans do not change as a result of unforeseen events,
that the Company obtains regulatory approval, future metal prices
and the demand and market outlook for metals. Forward-looking
information is subject to a variety of risks and uncertainties and
other factors that could cause plans, estimates and actual results
to vary materially from those projected in such forward-looking
information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, delays in
regulatory approval, risks associated with the interpretation of
data, the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's
expectations, as well as the other risks and uncertainties
applicable to mineral exploration and development activities and to
the Company as set forth in the Company's latest management
discussion and analysis filed under the Company's profile at
www.sedar.com. The Company undertakes no obligation to update
these forward-looking statements, other than as required by
applicable law.
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.
SOURCE Red Tiger Mining Inc.