Caledonia Mining Corporation Plc press release
Malaga narrows its net loss by $245,000 during Q1 2009
NYSE - New York Stock Exchange ยท Jersey
May 19, 2009 (Baystreet.ca) --
MONTREAL -- Malaga Inc. (TSX: MLG) is pleased to report its financial results for the 3-month period ended March 31, 2009. The consolidated financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with the management's discussion and analysis are available for the viewing on the Malaga website at www.malaga.ca and the documents have been filed with SEDAR at www.sedar.com.
<< Q1 2009 HIGHLIGHTS
Signing of a new 5-year tungsten supply contract as well as a financing agreement that was closed on April 1st by which Malaga is to receive US $5.0 million (US$3.4 million has already been received), without interest for the first 12-month period. The funds are to be used to increase the production capacity from 250 tons per day to 500 tons per day Sales of 17,092 MTUs (11,850 MTUs for Q1 2008), an increase of 44% Sales of $3.4 million, an increase of 78% as compared to $1.9 million for Q1 2008 Net loss in Q1 2009 of $0.6 million ($0.8 million in Q1 2008), a decrease of $0.2 million Ore grade of 0.90% of WO(3) for MTUs produced and sold, as compared to 0.82% for Q1 2008 Production from the Huayllapon I sector began during Q1
Mine development and underground exploration will be aggressively pursued during Q2 2009 following the closing of the above-mentioned financing agreement on April 1st. Purchasing of the new mining equipment (front loaders, electric carts and electrical transformers, etc.) that will be needed to increase the production capacity in 2010 is underway. The existing 250 tons per day (tpd) ore processing plant will be upgraded to a capacity of more than 500 tpd (maximum planned capacity is 600 tpd). All the necessary engineering studies have been completed and the construction phase is to begin shortly. This phase will take about 5 months to complete.
PRODUCTION
Mine production for the 3-month period ending March 31, 2009 is summarized below:
2009 2008 Tons of ore mined 20,179 20,253 Grade (%) 0.9 0.79 Production (MTU) 15,602 13,039 >>
OUTLOOK
Malaga has begun the upgrading its ore processing plant and the mine's infrastructure and has begun purchasing the necessary equipment in order to increase its production capacity to 500 tpd with the overall goal of improving the Company's profitability. Target date for the 500 tpd production capacity at Pasto Bueno is Q1 2010.
ABOUT MALAGA INC.
Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth, through increasing its tungsten concentrate production, continuing the exploration of the Pasto Bueno property, and through strategic acquisitions. It also seeks diverse growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%.
FORWARD-LOOKING INFORMATION
Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Malaga, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.
SOURCE: MALAGA INC.
Jean Martineau, President & CEO, Malaga Inc., (514) 288-3224