2ND NEWS RELEASE IN TWO DAYS!
Below is the latest news release from ING, this time commenting on their Monywa mining operation.
The fact that their TOTAL COST per pound of copper is only US$0.48 is truly exceptional. They split their profit of US$0.17 / lb with the Myanmar government, so that is how Edward Flood arrives at his figure of US$400,000 per month profit (4,720,000 pounds x US$0.085 / lb @ US$400,000. This assumes copper remaining at US$0.65 / lb; personally, I don't see copper falling below US$0.60. And this does not take into consideration that they have already sold forward six months of production at US$0.71 to that Japanese firm!).
Why more individual and institutional investors are not looking hard at ING, I do not know. They now have serious cash flow profit coming in @ US$0.06 / share (which beats many of the "hot" internet stocks which are still losing money left and right), and they are no longer a speculative exploration mining company. In addition, they still have US$0.76 / share of cash!! Bre-X fear simply does not apply here.
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Thursday February 4, 9:27 am Eastern Time
Company Press Release
SOURCE: Indochina Goldfields Ltd.
Indochina Goldfields' S&K Copper Mine Cash Cost US$0.30/Pound in First Three Months of Operation
SINGAPORE, Feb. 4 /CNW-PRN/ - Indochina Goldfields Ltd. announced today that its new S&K Mine at Monywa in Myanmar achieved a cash production cost of US$0.279 per pound of copper for the month of January, 1999. The heap leach, SX-EW operation continued to exceed the facility's design rate, producing 2,140 tonnes (4.72 million pounds) of LME Grade A copper cathode during the month.
''The low cost of production at the S&K Mine is due to a number of operational initiatives together with the overall inherent efficiencies in the ore deposit geometry and the state-of-the-art plant. With our depreciation and amortization cost of approximately US$0.20 per pound, and given current copper prices, Indochina's share of the project should earn operating income of about US$400,000 per month, beginning this month,'' said Edward Flood, President of Indochina Goldfields.
Since the start-up of copper production in early November, 1998, a total of 5,304 tonnes (11.7 million pounds) of copper cathode have been produced for a total mine site cash cost of US$0.30 per pound. The costs of in-country freight, shipping, discounts and marketing are an additional US$0.05 per pound.
''We recently completed a detailed 10-year mine plan which shows that the prospective cost structure of the project is wholly comparable to the operating cost performance exhibited to date. The project demonstrates excellent long-term viability,'' said Daniel Kunz, Chief Operating Officer of Indochina Goldfields.
Indochina Goldfields currently has 71.7 million shares outstanding and had a cash balance of approximately US$55 million on January 31, 1999. In addition to the S&K Mine at the Monywa Copper Complex, the company's assets include a major shareholding in the Emperor Gold Mine in Fiji, which expects to produce 135,000 ounces of gold in 1999, together with gold and base metal interests in Indonesia, Thailand, South Korea and Kazakhstan. The company's shares trade on the Toronto and Australian stock exchanges under the symbol ING.
FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Indochina Goldfields Ltd. (''Indochina''), are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Indochina's expectations are disclosed under the heading ''Risk Factors'' and elsewhere in Indochina's documents filed from time to time with the Toronto Stock Exchange and other regulatory authorities. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Indochina does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.
SOURCE: Indochina Goldfields Ltd.
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