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
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Internap Corporation has expanded its OpenStack-based bare-metal Infrastructure-as-a-Service offering, AgileSERVER 2.0, to its data centers in Amsterdam, Dallas and Santa Clara, Calif. Launched in 2015 out of Internap’s New York Metro data center in Secaucus, N.J., AgileSERVER 2.0 is now available in four locations globally, enabling enterprises and devops teams running mission-critical applications and big data workloads to build scale-out infrastructure environments that are higher performing ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
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 will dis...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.