AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
(From M2 Presswire)
Market Gainer is quickly emerging as the one stop shop for international small-cap investors looking to stay a step ahead of the markets. Today's activity on the AMEX market has brought this company to the attention of our research teamRio Narcea Gold Mines, Ltd. (AMEX:RNO), is responding to the attention of investors. Our goal is to create a community of international investors who consistently and effectively capitalize on the enormous gains the small-cap Canadian and American exchanges offer.
Rio Narcea Gold Mines, Ltd. ("Rio Narcea" or "the Company") (Toronto:RNG.TO)(AMEX:RNO) announced its results for the fourth quarter and year ending December 31, 2006.
- Record cash flow provided by operating activities of $77.4 million ($84.0 million before changes in components of working capital).
- Record revenues of $225.7 million, a 114% increase over 2005.
- Record net income of $70.7 million, after a loss of $37.8 million from derivatives and an income tax benefit of $20.4 million.
- $79.8 million in cash and cash equivalents at year-end.
- Production from Aguablanca of 14.1 million pounds of nickel and 14.6 million pounds of copper. Sales of 14.0 million pounds of nickel at a cash cost(a) of $4.23 per pound sold.
- Aguablanca plant operating at 140,000 tonnes per month with improved recoveries and concentrate grades.
- Aguablanca project debt fully repaid and production royalty repurchased for $6.0 million.
- Construction of Tasiast gold project on schedule for completion by mid-2007. Total capital expenditures of $79.0 million.
- Gold reserves at Tasiast increased 18% to 1,040,000 ounces.
- Tasiast project finance finalized in June 2006.
- Acquisition of a 19.9% shareholding in Chariot Resources Limited (17.1% acquired in second half of 2006, balance in January 2007).
- El Valle and CarlTs mines closed in December 2006 with minimum liabilities after producing 50,300 ounces of gold in 2006.
(a) Refer to Non-GAAP Measures Section in the MD&A.
"In 2006 we successfully transitioned Rio Narcea from a small, European gold producer to a very profitable international, polymetallic producer. Our Aguablanca nickel/copper mine generated a record $79.7 million of cash flow, with $35.0 million in the fourth quarter alone and recent drilling has revealed higher grade depth extensions to the Aguablanca orebody. Construction at our Tasiast gold project progressed well on schedule and is poised to produce gold by mid-2007. Tasiast will be the fourth mine we have constructed and brought to production in 10 years and the first outside the European Union. Our northern Spanish gold operations were successfully closed after producing one million ounces and our mine reclamation is viewed as an industry standard in Europe. These achievements bear testimony to our team's ability to discover, construct and operate mines," said Chris von Christierson, Chairman and Chief Executive Officer.
"In keeping with our growth strategy, we have now acquired a 19.9% interest in Chariot Resources, which holds a 70% interest in the Marcona copper project in Peru. We believe Marcona has potential for significant low cost copper production and, through our important stake in Chariot, Rio Narcea will support sound and effective management to realize this potential," he concluded.
2006 Financial Results
The financial information was prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). Reference should be made to note 17 of the audited consolidated financial statements for a reconciliation of significant differences between Canadian and U.S. generally accepted accounting …