VANCOUVER, July 30 /PRNewswire-FirstCall/ - Roca Mines Inc. (ROK: TSX-V) ('Roca' or 'the Company') has released its financial results for the third quarter of 2008, including production and sales from the MAX Molybdenum mine located in British Columbia, Canada. All dollar amounts are stated in Canadian dollars unless otherwise indicated.
Overview and highlights:
- Revenues of $6.3 million since declaring commercial production as of
April 12, 2008;
- The average price for molybdenum sales in the quarter was
US$32.82 per pound;
- The Company reported its first operating profit of $1.5 million or
2 cents per share;
- The Company reported cash flows from operations of $2.2 million or
3 cents per share;
- Molybdenum production during the quarter was 345,571 pounds compared
with 261,462 pounds for the three months ended Feb 29, 2008; and,
- Molybdenum cash costs for the quarter were approximately $7.75 per
pound of molybdenum.
MAX Molybdenum Mine - Production Results and Concentrate Sales
During the quarter, the Company produced and sold 345,571 pounds of molybdenum contained in concentrates. The value of the molybdenum in concentrates sold equaled $11.3 million based on an average molybdenum price received of US$32.82 per pound. Revenues of $6.3 million for the quarter resulted from sales which occurred after the commencement of commercial production on April 12, 2008. Concentrate inventory at May 31, 2008, was 24,729 pounds of molybdenum contained. The Company sells its concentrates to a UK-based buyer with sales revenues based on prevailing molybdenum oxide prices.
The table below is a summary of the operating statistics for the three months ended May 31, 2008:
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MAX Molybdenum Mine Q3 - 2008
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Month MAR-08 APR-08 MAY-08
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Molybdenum Produced (lbs)(1) 69,825 125,243 150,502
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Average Head Grade (% Mo) 0.333 0.712 0.732
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Molybdenum Recovery (%) 89.9 93.8 94.3
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Mill Availability (%) 79 74 82
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Average Daily Throughput (tpd) 348 300 335
Notes: (1) molybdenum in concentrate
Third Quarter 2008 Summary
The Company announced on April 12, 2008 that it had achieved commercial production at its MAX Molybdenum Mine located in British Columbia, Canada. The MAX Mine was constructed over an 18-month fast-tracked timeframe, with a capital cost for the Phase I mine of approximately C$50 million.
