PARIS -- (Marketwire) -- 05/15/12 -- La Mancha Resources Inc. (TSX: LMA) (FRANKFURT: LMA)
All amounts are expressed in CA dollars, unless otherwise indicated.
- Cash and short-term investments up $55.5 million year-over-year to $115.5 million
- Gold production of 25,301 oz at an average cash cost of US $808 per oz
- Net earnings of $7.9 million compared to $7.5 million in 2011
- Revenues of $45.5 million compared to $43.0 million in 2011
- Cash flow from operating activities of $14.1 million compared to $26.5 million in 2011
- The process, announced on March 14, 2012, is following its course
Dominique Delorme, President and CEO of La Mancha, noted that: "We mined over 39,000 attributable ounces on a consolidated basis, which is nearly 25% better than in the strongest quarter of 2011. This excellent performance is, however, not yet reflected in our first quarter consolidated gold production of 25,301 attributable ounces and related financial results. With strong ore stockpiles accumulated by quarter-end, we remain in line with our consolidated production guidance and look forward to a very strong second quarter."
La Mancha Resources Inc. (TSX: LMA) (FRANKFURT: LMA) (hereinafter "La Mancha" or the "Company") is pleased to report its operating and financial results for the quarter ended March 31, 2012. La Mancha's consolidated production totalled 25,301 ounces of gold for the first quarter of 2012, compared to 32,426 ounces for the corresponding quarter of 2011. While the Company's African gold production rose by 17% from last year, consolidated production for the quarter was affected by anticipated lower Australian output arising from quarterly fluctuations in toll-milling production.
While the average cash costs for its African operations decreased by 1%, consolidated cash costs were affected by higher Australian cash costs. As a result, first quarter consolidated cash costs averaged US $808 per ounce of gold in 2012 compared to US $622 a year earlier.
La Mancha's first quarter revenues totalled $45.5 million, up 6% from last year as the Company continued to benefit from higher gold prices. The fluctuation of its Australian gold production also had an impact on La Mancha's cash flow from operating activities, which were down $12.4 million from the corresponding period of 2011, at $14.1 million.
The Company continued to build its cash and short-term investment position during the quarter, which reached $115.5 million as of March 31, 2012, $55.5 million higher than at March 31, 2011. In early 2012, La Mancha sold financial notes (Master Asset Vehicle II) for $7.3 million to further strengthen its cash position, realizing a gain of $0.5 million over book value. Trade receivables at March 31, 2012, were up $4.3 million from December 31, 2011, mainly due to a $3.7-million gold sale occurring at the very end of the quarter. Since the payment of this gold sale was received after quarter-end, the Company's cash and short-term investment position is expected to be favourably impacted for the second quarter.