TSX: LBE <\/p>\n
TORONTO , Nov. 13, 2012 \/CNW\/ - Liberty Mines Inc. (LBE.TO) (\"Liberty\" or the \"Company\") today reported its financial results for the three- and nine-month periods ended September 30, 2012 . All amounts are in Canadian currency. <\/p>\n
\"Since the start of 2012, we have completed a number of significant milestones designed at positioning Liberty for the long term,\" said Chris Stewart , President and CEO of Liberty Mines. \"Included among these were the re-furbishment of our tailings storage facility, the shipment of more than 1.1 million pounds of payable nickel concentrate to our primary customer Xstrata, lowering our average cash costs to $8.02 per pound on a year to date basis, the expansion of our Hart East Deposit, and the development of a positive preliminary economic assessment for our Hart Deposit.\" <\/p>\n
Mr. Stewart added, \"Some of this progress was particularly reflected in our third quarter results, which included a revenue total of $3.9 million , the shipment of approximately 372,000 pounds of payable nickel concentrate, and the lowering of corporate and administration expenses by more than $560,000 . Despite the significant advances we have made since implementing our turn-around strategy, we continue to face a low nickel price environment that is delaying the re-start of our operations. Until nickel prices recover sufficiently, we will operate in a care and maintenance mode and preserve the value of our ore.\" <\/p>\n
Q3 2012 Financial and Operational Highlights <\/p>\n
Selected Q3 Financial Highlights <\/p>\n
Review of Q3 Financial Performance Revenue for Q3 2012 was $3.9 million , up from $159,000 for the corresponding period of 2011. The growth was due to a re-start of mining and milling operations effective March 31 , 2012. Liberty had suspended mining and milling operations in February 2011 due to maintenance and repair work need for its tailings storage facility. In Q3 2012, the average price of nickel was $7.41 per pound. In the corresponding period of 2011, the average price of nickel was $10.00 per pound. As a result of declining nickel prices, Liberty announced the temporary suspension of operations on August 14, 2012 . For the nine-month period of 2012, Liberty generated revenue of $9.3 million , up from $2.2 million for 2011. <\/p>\n
Liberty generates revenue through the sale of nickel concentrate and related by-products produced from its mining and milling operations in Timmins, Ontario. Liberty has a 100 percent off-take agreement with Xstrata. <\/p>\n
Operating expenses for Q3 2012 were $5.8 million , up from $1.9 million last year. The increase in operating expenses is primarily due to the re-start and subsequent ramp-up of production activities through August 14 , 2012. Liberty's production activities were suspended throughout Q3 2011, and the Company operated in a care and maintenance mode. For the nine-month period 2012, operating expenses were $16.5 million , up from $6.6 million . As previously noted, Liberty suspended operations on August 14, 2012 due to declining nickel prices. The Company currently operates its Timmins assets in a care and maintenance mode. <\/p>\n
Net loss for Q3 2012 was $8.5 million or $0.04 per share (basic and fully diluted). The loss included amortization\/depletion expenses of $2.6 million , interest on long-term debt of $2.8 million and dividends on preferred shares of $0.3 million . Liberty recorded a net loss of $8.5 million or $0.04 per share for the same period in 2011 when its operations were suspended. For the nine month period of 2012, Liberty recorded a net loss of $26.8 million or $0.13 per share. This compares to a net loss of $18.2 million or $0.10 per share for the six-month period of 2011. <\/p>\n<\/p>\n
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Liberty Mines Reports Financial Results for Third Quarter 2012<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" TSX: LBE TORONTO , Nov. 13, 2012 \/CNW\/ - Liberty Mines Inc Continue reading