Welcome!

News Feed Item

Dia Bras Announces Third Quarter 2012 Financial Results

TSX Venture Exchange - DIB
Bolsa de Valores de Lima - DIB

TORONTO, Nov. 27, 2012 /PRNewswire/ - Dia Bras Exploration Inc. (TSX-V:DIB) (BVL:DIB) ("Dia Bras") (the "Company") is pleased to announce the filing of its unaudited Financial Statements and Management Discussion and Analysis ("MD&A") for the third quarter of 2012. All amounts are presented in Canadian dollars unless otherwise stated. For the full Financial Statements or MD&A please visit the Company's website www.diabras.com or SEDAR at www.sedar.com

Daniel Tellechea, President and CEO of Dia Bras, commented "Dia Bras continued to achieve strong financial and operational results during the third quarter of 2012. The successful integration of Minera Corona into the Company, coupled with the production ramp up at Bolivar has resulted in the highest quarter of production to date. The Company added substantial value with significant increases in reserves and resources during the quarter and will continue with its aggressive exploration and development plans going forward".

The following table sets out selected information for the quarter and nine months ended September 30, 2012:

                 
  Three months ended
 September 30
Nine months ended
 September 30
(In thousands of dollars, unless stated) 2012 2011 2012 2011
                 
Revenue $ 46,126 $ 43,156 $ 136,369 $ 64,848
EBITDA   26,932   23,296   70,878   24,405
Cash flow from continuing operations   11,897   16,561   37,295   28,670
Adjusted net income attributable to shareholders1   11,594   17,319   41,838   7,838
Non-cash charge on Corona acquisition   (21,726)   (16,374)   (59,836)   (20,411)
Income Taxes    (6,437)   (947)   (7,440)   (1,729)
Net loss attributable to shareholders   (10,132)   945   (17,998)   (12,573)
  Cash cost per oz of Ag (Yauricocha) US$ (23.13)   (36.38)   (22.63)   -
  Cash cost per lb of Cu (Bolivar)   US$ 1.52   0.72   1.25   1.21
                 
                 
  September 30, December 31,        
(In thousands of dollars, unless stated) 2012 2011        
                 
Cash and cash equivalents $ 92,565 $ 20,156        
Assets   521,740   558,023        
Liabilities   227,851   281,283        
Equity   293,889   276,740        
1 Adjusted net income attributable to shareholders is defined by management as net
income attributable to shareholders shown in the financial statements plus non-cash
depletion charge due to the acquisition of Corona.

 

Financial Highlights

  • Adjusted net income attributable to shareholders of $11.6 million or $0.07 per share for the third quarter of 2012 compared to $17.3 million or $0.13 per share for the same period in 2011. Adjusted net income of $41.8 million and $7.8 million, for the nine month period ended September 30 of 2012 and 2011, respectively. Adjusted net income attributable to shareholders is defined by management as the net income shown in the financial statements plus non-cash depletion charges due to the acquisition of Corona. Adjusted net income in the third quarter of 2012 includes a non-recurrent tax charge of $5.0 million associated with the sale of the Company's hydroelectric asset during the first quarter of 2012.
  • EBITDA of $26.9 million for the third quarter of 2012 compared to $23.3 million for the same period in 2011. EBITDA of $70.9 million and $24.4 million in the nine month period ended on September 30 of 2012 and 2011, respectively.
  • Cash flow generated from operative activities of $11.9 million for the third quarter of 2012 compared to $16.6 million for the same period in 2011. Cash flow of $37.3 million and $28.7 million, for the nine month period ended September 30 of 2012 and 2011, respectively. The decrease recorded during the third quarter of 2012 is driven by higher uses of cash for working capital due to changes in accounts receivables.
  • Income taxes of $6.4 million for the third quarter of 2012 compared to $0.9 million in the same period of 2011. Income taxes of $7.4 million and $1.7 million in the nine month period ended on September 30 of 2012 and 2011, respectively. The increase in income taxes during the third quarter of 2012 is mainly driven by a $5.0 million non-recurrent tax charge associated with the sale of the Company's hydroelectric asset during the first quarter of 2011.
  • Net loss attributable to shareholders of $10.1 million or $0.07 per share for the third quarter of 2012 compared to a net income of $0.9 million ($nil per share) for the same period in 2011. Net loss of $18.0 million and $12.6 million, for the nine month period ended September 30 of 2012 and 2011, respectively.
  • A large component of the third quarter net loss for 2012 is a non-cash depletion charge in Peru of $21.7 million. This depletion charge has been calculated based on the units of production of the fair valued $363.9 million mineral property asset purchased in the acquisition of Corona on May 26, 2011. Management expects non-cash depletion cost will be reduced in future periods as the reserves and resources at the Yauricocha mine are increased.
  • Cash and cash equivalents of $92.6 million at the end of the third quarter of 2012 compared to $20.2 million at the end of December of 2011.
  • Revenues of $46.1 million for the third quarter of 2012 compared to $43.2 million for the same period in 2011. Revenues of $136.4 million and $64.8 million, in the nine month period ended September 30 of 2012 and 2011, respectively.
  • A negative silver ("Ag") cash cost of US$23.13 per ounce ("oz") in Yauricocha in the third quarter of 2011 and a negative US$ 22.63 for the nine month period ended September 30, 2012. Copper cash cost of US$1.52 per pound ("lb") at Bolivar for the third quarter of 2012 and US$ 1.25 per pound for the nine month period ended September 30, 2012. Higher by-product cash costs during 2012 at both Yauricocha and Bolivar were mainly driven by lower revenues from by-product production.

Operational Highlights

  • Silver production of 681,845 oz in the third quarter of 2012 compared to 585,483 oz for the same period in 2011. Silver production of 1,936,798 oz and 905,732 oz, for the nine month period ended in 2012 and 2011, respectively.
  • Copper ("Cu") production of 3.5 million pounds in the third quarter of 2012 compared to 3.9 million lb for the same period in 2011. Cu production of 9.0 milion lb and 5.9 million lb, for the nine month period ended in 2012 and 2011, respectively.
  • Lead ("Pb") production of 10.0 million lb in the third quarter of 2012 compared to 8.3 million lb for the same period in 2011. Pb production of 27.0 million lb and 11.2 million lb, for the nine month period ended in 2012 and 2011, respectively.
  • Zinc ("Zn") production of 15.4 million lb in the third quarter of 2012 compared to 14.5 million lb for the same period in 2011. Zn production of 39.8 million lb and 18.9 million lb, for the nine month period ended in 2012 and 2011, respectively.
  • Gold ("Au") production from the Yauricocha Mine was 2,409 oz in the third quarter of 2012 and 8,310 oz for the nine month period ended in 2012.

The following table sets out consolidated production results for the three and nine month periods ended September 30, 2012:

Consolidated Production    Three months ended   Nine months ended


Sept. 30, 2012  
Sept. 30, 2011
  % Var.
Sept. 30, 2012
  Sept. 30, 2011
  % Var.
Silver (oz)
681,845
  585,483
  16.5%
1,936,798
  905,732
  113.8%
Copper (000 lbs)
3,517
  3,891
  -9.6%
8,988
  5,895
  52.5%
Lead (000 lbs)
10,009
  8,302
  20.6%
27,024
  11,157
  142.2%
Zinc (000 lbs)
15,402
  14,493
  6.3%
39,814
  18,940
  110.2%
Gold (oz)
2,409
  N.A.
  N.A.
8,310
  N.A.  
N.A.

 

Exploration Highlights

  • On July 17, 2012 the Company announced significant drill results from its exploration programme at the Promontorio Mine at the Cusi Project. Drill assays substantially increased the known silver-disseminated zone and Dia Bras' geologists believe the area to extend over an area of at least 150 metres by 200-300 metres. Within this disseminated silver zone drill hole DC12B476 intersected 7.1 metres (true width) averaging 1,296 g/t Ag, this interval was part of a larger intersection of 21.0 metres (true width) averaging 543 g/t Ag.
  • On July 24, 2012 the Company reported positive drill results from its in-fill drill programme designed to increase resource categories at the Yauricocha Mine Area. Recent drilling at the Antacaca, Rosaura and Catas ore bodies has increased known copper-type and polymetallic-type mineralization along strike and at depth. At Catas, eight of the thirteen holes drilled returned significant results and expanded known copper-type and polymetallic type mineralization up to 160 metres along strike while remaining open at depth. Drilling at Antacanca-Rosaura returned positive results for eighteen of the twenty-two holes completed and shows that these two ore bodies merge at depth occurring over a strike length of 200 metres.
  • On August 30, 2012 an updated NI 43-101 compliant resource estimate was announced at the Company's Bolivar Mine in Chihuahua, Mexico. The total estimated Measured and Indicated resources are 15,404,000 tonnes averaging 0.79% Cu, 19.4 g/t Ag and 1.01% Zn at a mill cut-off grade of 0.66% copper-equivalent ("CuEq"). The total estimated Inferred Resources are 6,164,000 tonnes averaging 0.73% Cu, 18.1 g/t Ag and 0.93% Zn at the same cut-off.
  • On September 6, 2012 the Company completed an updated NI 43-101 reserve and resource estimate on its Yauricocha Property in the Yauyos Province, Peru. This estimate was an update to the resource report released on May 25, 2011 and has an effective date of January 1, 2012. The estimated total Proven and Probable Reserves are 4,162,940 tonnes averaging 119.7 g/t Ag, 0.70% Cu, 2.81% Pb, 2.57% Zn and 0.92 g/t Au. The estimated total Measured and Indicated Resources, including reserves, are 4,181,390 averaging 121.8 g/t Ag, 2.91% Pb, 0.72% Cu, 2.54% Zn and 0.93 g/t Au. The estimated total Inferred Resources are 1,794,330 tonnes averaging 58.62 g/t Ag, 1.57% Pb, 0.64% Cu 1.08% Zn and 1.10 g/t Au.
  • On September 12, 2012 the Company identified a significant tonnage target below the central mine workings at the Yauricocha Mine. The potential of the target below the known mine workings is approximately 5-6 million tonnes, roughly averaging 90-110 g/t Ag, 2-3% Pb, 0.5-1.0% Cu, 2-3% Zn and 0.6-1.0 g/t Au. This target is in addition to the reserves and resources previously announced on September 6, 2012 and the Company will continue to explore this new zone in the fourth quarter of 2012 and 2013.
  • On September 12, 2012 the Company identified a significant tonnage target below the central mine workings at the Yauricocha Mine. The potential of the target below the known mine workings is approximately 5-6 million tonnes, roughly averaging 90-110 g/t Ag, 2-3% Pb, 0.5-1.0% Cu, 2-3% Zn and 0.6-1.0 g/t Au. This target is in addition to the reserves and resources previously announced on September 6, 2012 and the Company will continue to explore this new zone in the fourth quarter of 2012 and 2013.

Corporate Highlights

  • On August 24, 2012 Corona announced a change in its dividend policy. The new policy will significantly increase Corona's financial flexibility because it delegates to the board of Corona the prerogative to distribute dividends during the year and it eliminates the requirement stated in the prior policy that Corona distribute at least 50% of its yearly earnings as dividends. The new policy will increase liquidity and help to facilitate the development of the mining infrastructure needed to exploit Yauricocha's ore bodies to depth.

Quality Assurance

The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101 and Head of Exploration for Dia Bras Exploration, Inc.

About Dia Bras

Dia Bras Exploration is a Canadian exploration & mining company focused on precious and base metals in Chihuahua State, other areas of northern Mexico, and most recently at its Yauricocha silver-lead-zinc-copper-gold mine in Peru. The Company is accelerating exploration at the Yauricocha property as well as pursuing the development and exploration of its most advanced Mexican assets - the Bolivar Property (copper-zinc-silver) and the Cusi Property (silver-lead) and is exploring in Mexico several precious metal targets such as La Sidra gold project at the Bolivar Property, Las Coloradas silver project at Melchor Ocampo (Zacatecas State), the Bacerac silver project (Sonora State), and the La Verde gold project at the Batopilas Property (Chihuahua State).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking Statements

Except for statements of historical fact, all statements in this news release without limitation regarding new projects, acquisitions, future plans and objectives are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

 

SOURCE Dia Bras Exploration Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.