Mangazeya Mining Announces the Filing of its Third Quarter 2013 Financial Results
TORONTO, Nov. 29, 2013 /CNW/ - Mangazeya Mining Ltd. ("Mangazeya" or the "Company") (NEX: MGZ.H) announced the filing of its interim financial statements ("Financial Statements") and management's discussion and analysis ("MD&A") for the three month period ended September 30, 2013. All figures are quoted in Canadian dollars unless otherwise indicated.
Commenting on the interim financial results, Sergey Yanchukov, CEO of Mangazeya, said, "The Company is satisfied with the operating results for the third quarter of fiscal 2013. The completion of the novation of the US$150 million senior secured loan facility ("Loan Facility") from VTB Capital plc to Unique Goals International Inc. is expected to provide the Company with more stability over the medium term.
Highlights for Q3 2013 include:
- Net loss for the period from continuing operations after tax and finance costs of $2.9 million compared to a net income from continuing operations after tax and finance of $2.0 million for the corresponding period in the previous year;
- Revenue of $10.6 million for the third quarter of fiscal 2013 compared to revenue of $14.5 million in the third quarter of the previous year;
- Gross profit for the three month period of $1.7 million compared to a gross profit of $8.1 million for the corresponding period in the previous year;
- Gold poured of 7,128 ounces compared to 8,692 ounces for the third quarter last year; and
- Cash cost per ounce sold for the third quarter of $977 compared to $686 for the third quarter last year.
Financial Results for the Quarter ended September 30, 2013
The Company reported an operating loss from continuing operations of $687,000 for the three months ended September 30, 2013 compared with an operating income from continuing operations of $4,911,000 for the three months ended September 30, 2012. Gross profit from continuing operations for the three months ended September 30, 2013 decreased to $1,722,000 from $8,098,000 for the three months ended September 30, 2012. Administrative costs for the three months ended September 30, 2013 decreased to $1,629,000 from $2,277,000 for the corresponding period ended September 30, 2012. Net loss from continuing operations after tax and finance costs was $2,883,000 for the three month period ended September 30, 2013, while the Company's net income from continuing operations after tax and finance costs for the three month period ended September 30, 2012 was $2,019,000.
The occurrence of a net loss after tax and finance costs from continuing operations for the three months ended September 30, 2013 compared with net income in the corresponding period of 2012, resulted from reduced revenue, higher costs of sales per ounce and a lower gross profit.
For the three and nine months ended September 30, 2013, the Company reported a net loss from discontinued operations of nil. The losses from discontinued operations in the comparable periods of 2012 were nil and $171,763,000, respectively, resulting from the deconsolidation of Century.
About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.
Caution Concerning Forward-Looking Information
This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") relating, but not limited to, the Company's expectations, intentions and beliefs (including, without limitation, statements regarding, the Bridge Loan (including the timing of advances thereunder and the terms thereof), the Company's financial position, financial alternatives and the Company's ability to continue operations and the Loan Facility (including the occurrence of an event of default thereunder and its potential effect on the Company)). Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: the Company's ability to obtain additional financing on acceptable terms or at all; the Company's ability to demonstrate compliance with NEX listing requirements; changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of the Company; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from the Company's activities in Russia; fluctuations in foreign exchange rates; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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 release
SOURCE Mangazeya Mining Ltd.
Chief Executive Officer
Mangazeya Mining Ltd.