News blog

Minera IRL

• BY: Andrew Hore |
• POSTED: 15/08/2013 |

Gold miner Minera IRL reported a fall in profit in the second quarter of 2013 due to the falling gold price.

The cash balance has fallen from $6.5m to $4.9m in a three month period.  Net current liabilities are $23m due to its facility with Macquarie Bank.

Second quarter gold sales of 6,949 ounces were 1% higher than one year ago but the average price realised fell from $1,611/ounce to $1,447/ounce. That meant that revenues fell 9% to $10.1m. Minera IRL made a pre-tax profit of $500,000 compared with a profit of $1.2m in the same quarter last year.

The gold is mined at Corihuarmi in Peru and Minera IRL is on course to produce 24,000 ounces of gold this year. Although second quarter operating costs of $653/ounce were higher than one year before they were much lower than the $726/ounce reported for the first quarter.

The Environmental and Social Impact Assessment process for the Ollachea gold prospect in Preu should be completed in the second half of 2013. Minera IRL has secured $10m of additional finance from its Macquarie facility. The company has agreed to pay Rio Tinto $21.5m over 24 months for the final transfer of the mining rights to Ollachea. The payment is in three instalments and up to 80% could be paid in shares.

A financing package for the Don Nicolas project in Argentina is being put together.

At 12.75p a share, Minera IRL is valued at £22.1m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2013_47.pdf