Posted here is just an excerpt. Go to this link to see the full article and the graphs better:
http://www.capstonemining.com/news/2007/index.php?&content_id=175CORRECTION FROM SOURCE:
Capstone Mining Year-End and Fourth Quarter Results
Nov 15, 2007 (Hugin via COMTEX News Network) --
VANCOUVER, BRITISH COLUMBIA -- (MARKETWIRE) -- 11/14/07 --
The following corrects and replaces the release sent today @ 8:26 PM ET. The Minerals Resource estimate table lead and zinc numbers were corrected.
Capstone Mining Corp. ("Capstone") (TSX: CS) announces its financial results for the year and quarter ending August 31, 2007 including production and sales for the Cozamin mine located in Zacatecas State, Mexico. All dollar amounts are stated in U.S. dollars unless otherwise indicated.
Overview and Highlights
For the year ended August 31, 2007, Capstone's earnings before future income tax allowance were $25.2 million or $0.31 per share ($0.30 per share diluted), and earnings after future income tax allowance were $22.7 million or $0.28 per share ($0.27 per share diluted), compared to a loss of $2.6 million or $0.04 loss per share ($0.04 loss per share diluted) in fiscal 2006.
- For the fourth quarter of fiscal 2007, earnings before future income tax allowance were $10.7 million or $0.13 per share. Earnings after future income tax allowance were $8.2 million or $0.10 per share.
- Revenue for fiscal 2007 was $55.3 million. The average realized price for sales of copper, zinc, lead and silver in fiscal 2007 was $3.20/lb, $1.60/lb, $0.96/lb and $10.76/oz respectively.
- At year end, Capstone had working capital of $52.9 million including $36 million in cash and no bank debt, compared with working capital of $20.6 million and a cash balance of $20.6 million in the previous year.
- Copper cash costs for fiscal 2007 were $0.54/lb of copper (net of by-product credits and including smelter, refining, transportation and all site costs). Copper cash costs for Q4 were $0.63/lb.
- Total costs (the aggregate of cash costs, royalty, depletion and amortization and accretion) for fiscal 2007 were $0.87/lb.
- During the year, Capstone issued 679,080 shares to Grupo Bacis to complete its option to purchase the Cozamin Mine, giving Capstone a 100% ownership interest subject to a 3% Net Smelter Royalty paid to Grupo Bacis.
- Capstone sold its silver during the year to Silverstone Resources Corp. ("Silverstone"), whereby Capstone received $44 million ($20 million in cash and $24 million in Silverstone shares) plus the lesser of $4.00 per ounce of silver and the prevailing market price upon delivery in exchange for selling the next 10 years of silver production from the Cozamin mine. Fair market value of the Silverstone shares today is $57 million.
- Mineral reserves at year end for Cozamin were increased by 65% to 3.7 million tonnes, boosting recoverable copper from 93 million pounds in 2006 to 173 million pounds in 2007. Recoverable zinc increased from 24 million pounds to 48.5 million pounds, recoverable lead increased from 1.6 million pounds to 2 million pounds and recoverable silver increased from 4 million ounces to 7.3 million ounces.
Cozamin Mine
Fiscal 2007 Production and Sales Highlights
- Capstone produced the following metals during the year.
- 13.9 million pounds of copper
- 6.8 million pounds of zinc
- 3 million pounds of lead
- 747,000 ounces of silver
- Concentrate sales for the year were dry metric tonnes ("DMT"), containing;
- 11.8 million pounds of copper
- 5 million pounds of zinc
- 2.8 million pounds of lead
- 641,000 ounces of silver
Concentrate inventory at August 31, 2007 was 8,150 DMT (containing 2.6 million pounds of copper, 2.0 million pounds of zinc and 0.4 million pounds of lead).
2007 Production Results and 2008 Forecast
The forecasted copper, zinc, lead and silver production for fiscal 2007 was estimated to be 13 - 14 million pounds of copper, 8 million pounds of zinc, 3.5 million pounds of lead and 700,000 ounces of silver.
Fourth Quarter Production Highlights
Copper
- Copper in concentrate produced during the quarter was 4.9 million pounds of copper, 37% higher than the previous quarter.
- Copper concentrate sales for the quarter were 8,372 dry metric tons ("DMT"), containing 3.9 million pounds of copper, an increase from the 5,947 DMT sold during the previous quarter, containing 2.9 million pounds of copper.
- The average price for sales of copper in the quarter was $3.34/lb.
- Copper concentrate inventory at August 31, 2007 was 5,447 DMT, an increase in inventory from the 3,842 DMT of concentrate on hand at the end of the previous quarter.
- Silver in the copper concentrate produced during the quarter totaled 205,000 ounces, 44% higher than the previous quarter.
Zinc
- Zinc in concentrate produced during the quarter was 2.1 million pounds of zinc, 31% more than the previous quarter.
- Zinc sales for the quarter were 1,977 DMT, containing 1.6 million pounds of zinc, an increase from the 1,949 DMT sold during the previous quarter, containing 1.5 million pounds of zinc.
- The average price for sales of zinc in the quarter was $1.65/lb.
- Zinc concentrate inventory at August 31, 2007 was 2,413 DMT, an increase in inventory from the 1,820 DMT of concentrate on hand at the end of the previous quarter.
- Silver in the zinc concentrate produced during the quarter totaled 10,000 ounces, 67% higher than the previous quarter.
Lead
- Lead in concentrate produced during the quarter was 1.0 million pounds of lead, 67% more than the previous quarter.
- Lead concentrate sales for the quarter were 498 DMT, containing 0.7 million pounds of lead, equal to the 502 DMT sold during the previous quarter, containing 0.7 million pounds of lead.
- The average price for sales of lead in the quarter was $1.48/lb.
- Lead concentrate inventory at August 31, 2007 was 290 DMT, an increase in inventory from the 120 DMT of concentrate on hand at the end of the previous quarter.
- Silver in the lead concentrate produced during the quarter totaled 49,000 ounces, 63% higher than the previous quarter.
Mill Expansion Project
Tons mined and processed were higher in the fourth quarter of fiscal 2007 compared to previous 2007 quarters as expansion start up commenced ahead of schedule in July at the 2200 tpd rate. July and August production rates averaged approximately 94% of design throughput. Capital expenditures were $11 million, with approximately $2 million remaining to be spent on final land payment, underground crusher installation and ramp completion versus $15 million budget.
Labour
There were 11 minor lost time accidents during the year from both operations and construction. The number of personnel at the end of the year was 526, of which approximately 146 were contractors related to the expansion project.
Copper production costs in the fourth quarter were $0.05 above plan reflecting the impact of the company having sold all its silver production to Silverstone Resources Corp. at $8.40 per ounce.
Mineral Reserves and Resources
An updated reserve and resource estimate has been completed for the Cozamin mine, as of August 31, 2007. The new reserve and resource estimate increases both the tonnage and contained metal within all of the reserve and resource categories, while maintaining its high grade. The Company completed 5 surface and 70 underground NQ-core drill holes totaling 26,266 metres. Modeling also included channel samples from mined areas.
The exploration drilling program was carried out in 2006/7 to upgrade and expand the mineral resources. The program resulted in an increase of mineable reserves of 65% after allowing for ore production during the year shown below, at a $40 cut-off.
The resources shown below indicate the successful conversion from inferred resources to measured and indicated resources, while maintaining a similar tonnage in the inferred category. Overall resources increased 47% after allowing for mined out tonnage.
The resource and reserve estimation was completed by Cozamin mine staff under the supervision of Michelle Stone and Bob Barnes, Qualified Persons under National Instrument 43-101. The estimates used long term metal prices of $2.25/lb for copper, $1.00/lb for zinc, $0.60/lb for lead and $8.50/oz for silver. A technical report will be filed on
www.sedar.com in November 2007.
See full news release at
http://www.capstonemining.com/news/2007/index.php?&content_id=175
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Tue Oct 16, 2007 5:53 am