August 14, 2012 at 12:43 PM EDT
Iberian Minerals Reports Q2 Net Income of $25.46 Million

TORONTO, ONTARIO -- (Marketwire) -- 08/14/12 -- Iberian Minerals Corp. (TSX VENTURE: IZN) today announced financial and operating results for the three and six month periods ended June 30, 2012, with comparative figures for the three and six month periods ended June 30, 2011. The condensed interim consolidated financial statements and related notes, and Management Discussion and Analysis may be found on www.sedar.com. Unless stated otherwise, all reported figures are in U.S. dollars. The Company reported net income of $25.46 million for Q2 2012, representing $0.05 per share.


Financial highlights:

Three months ended June 30, 2012

--  Recorded net income of $25.46 million or $0.05 per registered share
    which included:

    --  Sales of $124.25 million and gross gain of $31.40 million;

    --  A realized gain of $4.75 million on commodity hedges (included in
        sales) which contributed to the gross gain;

    --  An unrealized non-cash gain of $29.08 million on derivative
        financial instruments outstanding, principally as a result of
        commodity hedging positions in copper and zinc that were delivered
        into during the period and were thus retired.

--  Cash flow provided by operations before changes in working capital items
    was $38.7 million.


Six months ended June 30, 2012

--  Recorded net income of $13.17 million or $0.03 per registered share
    which included:

    --  Sales of $210.78 million and gross gain of $37.87 million;

    --  A realized loss of $11.44 million on commodity hedges (included in
        sales) which partly net off the gross gain;

    --  An unrealized non-cash gain of $13.71 million on derivative
        financial instruments outstanding, principally as a result of
        commodity hedging positions in copper and zinc that were delivered
        into during the period and were thus retired.

--  Cash flow provided by operations before changes in working capital items
    was $66.03 million.


Operational highlights - MATSA:

Three months ended June 30, 2012

--  MATSA processed 533,717 tonnes of ores in 2012 versus 466,444 tonnes of
    ores in 2011 (increase of 67,273 tonnes or 14.4%).

--  Produced 29,091 DMT of copper concentrate (2011 - 28,300 DMT), 15,200
    DMT of zinc concentrate (2011 - 15,236 DMT) and 4,614 DMT of lead
    concentrate (2011 - 5,970 DMT). Contained metal production was 6,941 FMT
    of copper (2011 - 6,216 FMT), 7,204 FMT of zinc (2011 - 7,307 FMT),
    1,037 FMT of lead (2011 - 1,064 FMT) and 256,555 ounces of silver (2011
    - 213,806 ounces).

--  The Cash Operating Cost (non-IFRS measure - refer to section 6) was
    $1.15 per payable pound of copper (2011 - $1.73 per payable pound of
    copper). Cash Operating cost was substantially reduced in 2012 due to
    the combined effect of higher payable copper production (6,650 FMT in
    2012 versus 5,933 FMT in 2011), lower operating cost realized at Matsa
    and higher by-product metal production (US$13,46 million in 2012 versus
    US$11,49 in 2011).

--  During the three months ended June 30, 2012, the Company terminated an
    agreement with Cadillac Venture Inc. which extinguishes their 90%
    interest on 14 of MATSA's properties located in the Iberian Pyrite Belt
    of southern Spain. The consideration for the transaction was CAD$2.50
    million. The transaction was accepted by TSX Venture Exchange. As of
    June 30, 2012, the transaction was paid.


Six months ended June 30, 2012

--  MATSA processed 1,079,530 tonnes of ore in 2012 versus 980,528 tonnes of
    ore in 2011 (increase of 99,002 tonnes or 10.1%).

--  Produced 57,196 DMT of copper concentrate (2011 - 55,708 DMT), 35,031
    DMT of zinc concentrate (2011 - 32,602 DMT) and 11,321 DMT of lead
    concentrate (2011 - 16,245 DMT). Contained metal production was 13,288
    FMT of copper (2011 - 12,357 FMT), 16,597 FMT of zinc (2011 - 15,774
    FMT), 2,861 FMT of lead (2011 - 2,998 DMT) and 529,445 ounces of silver
    (2011 - 486,068 ounces).

--  The Cash Operating Cost was $1.16 per payable pound of copper (2011 -
    $1.73 per payable pound of copper). Year-to-date Cash Operating cost was
    substantially reduced in 2012 due to the combined effect of higher
    payable production and higher by-product metal production. This
    improvement has been consistent in the two quarters included in the six
    months period ended June 30, 2012.


Operational - CMC:

Three months ended June 30, 2012

--  The average copper ore grade was 0.93% in 2012 versus 1.11% in 2011.

--  CMC processed 626,799 tonnes of ore in 2012 versus 593,290 tonnes of ore
    in 2011 (increase of 33,509 tonnes or 5.6%).

--  Copper concentrate production in 2012 was 23,093 DMT versus 24,491 DMT
    in 2011 (decrease of 1,398 DMT or 5.7%).

--  Contained copper production in 2012 was 5,313 FMT versus 5,931 FMT
    tonnes in the prior year (decrease of 617 FMT or 10.4%).

--  The Cash Operating Cost in 2012 was $1.83 per payable pound of copper
    versus prior year of $1.08.


Six months ended June 30, 2012

--  The average copper ore grade was 0.95% in 2012 versus 1.11% in 2011.

--  CMC processed 1,226,102 tonnes of ore in 2012 versus 1,172,028 tonnes of
    ore in 2011 (increase of 54,074 tonnes or 4.6%).

--  Copper concentrate production in 2012 was 45,666 DMT versus 47,878 DMT
    in 2011 (decrease of 2,212 DMT or 4.6%).

--  Contained copper production in 2012 was 10,526 FMT versus 11,699 FMT in
    the prior year (decrease of 1,173 FMT or 10.0%).

--  The Cash Operating Cost in 2012 was $1.77 per payable pound of copper
    versus prior year of $1.09.

Summarized Financial Results

The following table presents a summarized Statement of Operations for the three and six months ended June 30, 2012 with comparatives for the three and six months ended June 30, 2011.


                                     Three months ended    Six months ended
                                               June 30,            June 30,
----------------------------------------------------------------------------
(thousands of U.S. Dollars)              2012      2011      2012      2011
----------------------------------------------------------------------------
                                            $         $         $         $
Gross sales                           119,502   146,108   222,218   241,976
Realized gains on derivative
 financial instruments held for
 trading                                4,752   (59,965)  (11,436) (118,604)
Sales                                 124,254    86,142   210,782   123,372
Costs and expenses of mining
 operations                            92,885    93,504   172,912   153,305
----------------------------------------------------------------------------

Gross gain / (loss)                    31,369    (7,362)   37,870   (29,933)

Expenses
Administrative expenses and other      13,744     1,625    22,547     3,071
Foreign exchange (gain) loss           (1,125)       22     1,385     3,163
Contingent consideration fair value         -         -         -         -
Unrealized gain on derivative
 instruments                          (29,079)  (65,362)  (13,706) (128,440)
----------------------------------------------------------------------------
Total expenses (other income)         (16,460)  (63,715)   10,226  (122,206)

Operating income                       47,829    56,353    27,644    92,273

Net finance costs                         867     2,042     1,840     8,273
----------------------------------------------------------------------------
Income before taxation                 46,962    54,311    25,804    84,000
Current income tax expense              4,749       238     3,730     1,081
Future income tax expense              16,758     6,277     8,901     4,961
----------------------------------------------------------------------------
Net income                             25,455    47,796    13,173    77,958
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Basic earnings per share ($)             0.05      0.13      0.03      0.21
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Diluted earnings per share ($)           0.05      0.12      0.03      0.20
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Key operating statistics

CMC:

  CMC operating statistics
  --------------------------     --------------------  ---------------------
                                      Three months           Six months
  Periods ended June 30,    Unit      2012      2011        2012        2011
  --------------------------------------------------------------------------

  Ore mined                    t   641,691   591,530   1,273,982   1,179,485
  Ore processed                t   626,799   593,290   1,226,102   1,172,028

  Copper ore grade             %      0.93      1.11        0.95        1.11
  Concentrate grade            %        23        24          23          24
  Copper recovery rate         %        90        90          90          90

  Copper concentrate         DMT    23,093    24,491      45,666      47,878

  Copper contained in
   concentrate               FMT     5,313     5,931      10,526      11,699
  Gold contained in
   concentrate                oz     3,251     3,626       6,201       7,031
  Silver contained in
   concentrate                oz    69,822    83,424     146,182     161,264

  Payable copper contained
   in concentrate            FMT     5,057     5,658      10,029      11,164
  Payable gold contained in
   concentrate                oz     2,943     3,283       5,592       6,366
  Payable silver contained
   in concentrate             oz    68,605    74,706     131,125     144,412

  --------------------------------------------------------------------------
  Cash Operating Cost per
   lb of payable copper      USD  $   1.83  $   1.08  $     1.77  $     1.09
  --------------------------------------------------------------------------


MATSA:

  MATSA operating statistics
  ---------------------------------      ----------------- -----------------
                                            Three months       Six months
  Periods ended June 30,            Unit     2012     2011     2012     2011
  --------------------------------------------------------------------------

  Copper ore
  Ore mined                            t  269,243  316,274  552,469  620,961
  Ore processed                        t  277,744  287,355  554,994  593,103

  Copper ore grade                     %     1.95     2.23     2.05     2.21
  Concentrate grade                    %       24       22       23       22
  Copper recovery rate                 %       85       85       86       86

  Copper concentrate                 DMT   19,605   24,854   42,297   50,609

  Copper contained in concentrate    FMT    4,615    5,439    9,710   11,231
  Silver contained in concentrate     oz   91,876   76,500  178,746  155,200

  Payable copper contained in
   concentrate                       FMT    4,419    5,191    9,287   10,725
  Payable silver contained in
   concentrate                        oz   72,967   52,505  137,950  106,416

  Polymetallic ore
  Ore mined                            t  259,911  200,377  523,707  414,557
  Ore processed                        t  255,973  179,089  524,536  387,424

  Zinc ore grade                       %     4.05     5.86     4.49     5.91
  Zinc concentrate grade               %       47       48       47       48
  Zinc recovery rate                   %       70       70       71       69


  Copper ore grade                     %     1.35     1.09     1.17     1.05
  Copper concentrate grade             %       25       23       24       22
  Copper recovery rate                 %       68       40       68       28

  Lead ore grade                       %     1.17     1.73     1.33        2
  Lead concentrate grade               %       22       18       25       19
  Lead recovery rate                   %       34       34       40       43

  Zinc concentrate                   DMT   15,200   15,236   35,031   32,602
  Copper concentrate                 DMT    9,486    3,446   14,899    5,099
  Lead concentrate                   DMT    4,614    5,970   11,321   16,245

  Zinc contained in concentrate      FMT    7,204    7,307   16,597   15,774
  Copper contained in concentrate    FMT    2,327      777    3,578    1,126
  Lead contained in concentrate      FMT    1,037    1,064    2,861    2,998
  Silver contained in concentrate     oz  164,679  137,306  350,699  330,868

  Payable zinc contained in
   concentrate                       FMT    5,988    6,088   13,795   13,163
  Payable copper contained in
   concentrate                       FMT    2,232      743    3,429    1,075
  Payable lead contained in
   concentrate                       FMT      899      884    2,521    2,510
  Payable silver contained in
   concentrate                        oz  102,902   80,707  211,492  205,362

  --------------------------------------------------------------------------
  Cash Operating Cost per lb of
   payable copper                    USD     1.15     1.73     1.16     1.73
  --------------------------------------------------------------------------

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian listed global base metals company with interests in Spain and Peru. The Condestable Mine, located in Peru approximately 90 km south of Lima operates at 2.4 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas Mine is in the Andalucia region of Spain approximately 110 km north-west of Seville and operates a 2.2 million tonnes per year underground mine and concentrator that produces copper, zinc and lead concentrates that also contain gold and silver.

Note 1 - The Cash Operating Cost per pound of payable copper is a non-IFRS performance measure. It includes cash operating costs, including treatment and refining charges ("TC/RC"), freight and distribution costs, and is net of by-product metal credits (zinc, gold and silver). The Cash Operating Cost per pound of payable copper indicator is consistent with the widely accepted industry standard established by Brook Hunt and is also known as the C1 cash cost.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward looking information may include, but is not limited to, statements with respect to the future financial or operating performances of the Corporation, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, the future price of copper, gold and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the section entitled "Risk Factors" in the Corporation's annual information form dated March 29, 2010. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither 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.

Contacts:
Iberian Minerals Corp.
416-815-8558
info@iberianminerals.com

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