Mercator Reports Record Earnings, Cash Flow & Copper Production for the Year ended December 31, 2006
08:15 EDT Monday, April 02, 2007
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(Stated in US Dollars unless otherwise indicated)
TRADING SYMBOL: TSX - ML
KINGMAN, AZ, April 2 /PRNewswire-FirstCall/ - Mercator Minerals Ltd. today announced record operating cash flow for the year ended December 31, 2006 of $20.2 million or $0.36 per share, before interest, taxes, one time expenses related to the partial dismantling of the Mission South mill and the pre-feasibility work, and non-cash charges, as a result of significantly higher copper production combined with outstanding realized copper prices. Net Income for the year was $7.1 million or $0.13 per share after expensing all exploration and pre-feasibility costs associated with the Phase 4 expansion of Mineral Park (currently in construction), and accruing $4.7 million in non-cash items such as $1.2 million in future tax liabilities. This compares with net income of $359,177 ($0.01 per share) for 2005.
"Our record operating cash flow over the past year allowed us to rapidly advance the Mineral Park Phase 4 Copper/Molybdenum Expansion Project through completion of a pre-feasibility study and was a major factor allowing Mercator to complete a $117 million debt and $Cdn25 million equity financing subsequent to the end of the year," said Michael L. Surratt, President and CEO. "As a result of the financing, in March 2007 Mercator commenced construction of the Mill at Mineral Park, which is expected to start production in the second half of 2008 and ultimately produce 56 million pounds of copper and 10 million pounds of molybdenum and 600,000 ounces of silver per year."
"During 2006, SX/EW copper production at Mineral Park continued to ramp up as the benefits of the Phase 1 and 2 expansions began to be realized. Production during the fourth quarter 2006 was the best quarter under our ownership at Mineral Park with approximately 2.9 million pounds of cathode copper produced at operating cash cost of $0.82 per pound of copper," said Mr. Surratt.
Financial Highlights for the Year ended December 31, 2006
- For the year ended December 31, 2006, the Company reported operating
cash flow of $20.2 million ($0.36 per share), compared with operating
cash flow of $2.1 million ($0.05 per share) for the corresponding
period in 2005, an 885% increase.
- Production of 9.5 million pounds of copper at a cash cost of $1.02
per pound in 2006 compared to 6.3 million pounds of copper at a cash
cost of $1.20 per pound in 2005.
- For the year ended December 31, 2006, the Company reported net income
of $7,067,657 ($0.13 per share), compared with net income of $359,177
($0.01 per share) for the corresponding period in 2005, an 1,868%
increase;
- Assets of $53,222,670 for the year ended December 31, 2006, compared
to $20,754,439 for the corresponding period in 2005, an increase of
$32,468,231.
- Cash on hand at December 31, 2006 of $11,076,108, as compared to
$1,899,773 for the corresponding period in 2005 and working capital
at December 31, 2006 of $17,817,247, as compared to a working capital
of $4,255,347 for the corresponding period in 2005;
- Gross Sales Revenues at Mineral Park before expenses for the year
ended December 31, 2006, was $31,010,071, compared to $11,269,981 for
the corresponding period in 2005, a 175% increase.
- For the quarter ended December 31, 2006, the Company recorded
earnings of $4.9 million or $0.09 per share before taxes and non cash
charges.
All financial information contained herein should be read in conjunction with the Company's Management Discussion and Analysis and audited financial statements for the years ended December 31, 2006 and 2005 and related notes thereto available under the Company's profile on www.sedar.com.
Jim Tompkins, P.Eng., the Company's Engineering Manager, a Qualified Person as defined by NI43-101, supervised the preparation of and verified the technical information contained in this release.
Mercator Minerals Ltd.
Mercator Minerals is a copper producer that owns and operates the Mineral Park copper mine in Arizona, with a corporate strategy focused on maximizing the production potential of the Mineral Park copper-molybdenum deposit. The Company has filed a technical report for an expansion of copper production plus molybdenum and silver production.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
President
This press release contains certain forward-looking statements, which include estimates, forecasts, and statements as to management's expectations with respect to, among other things, the size and quality of the Company's mineral reserves and mineral resources, future production, capital and mine production costs, demand and market outlook for commodities, and the financial results of the Company. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary.
Factors that may cause actual results to vary include, but are not limited to, changes in commodity and power prices, changes in interest and currency exchange rates, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials and equipment, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets. These risks are described in more detail in the Annual Information Form of the Company. The Company does not assume the obligation to revise or update these forward-looking statements after the date of this report or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
For a more complete discussion, please refer to the Company's audited financial statements and MD&A for the year ended December 31, 2006 on the SEDAR website at www.sedar.com.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
CONTACT: Marc LeBlanc, Corporate Secretary, Tel: (604) 981-9661, or (604) 716-5582, Fax: (604) 960-9661, Email: mleblanc@mercatorminerals.com
SOURCE Mercator Minerals, Ltd.
For further information: Marc LeBlanc, Corporate Secretary, Tel: (604) 981-9661, or (604) 716-5582, Fax: (604) 960-9661, Email: mleblanc@mercatorminerals.com |
