Iberian Minerals Reports Q3 Net Loss of $33.24 Million

TORONTO, ONTARIO -- (Marketwire) -- 11/16/12 -- Iberian Minerals Corp. (TSX VENTURE: IZN) today announced financial and operating results for the three and nine month periods ended September 30, 2012, with comparative figures for the three and nine month periods ended September 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 loss of $33.24 million for Q3 2012, representing a loss of $0.07 per share.


Financial highlights:

Three months ended September 30, 2012

--  Recorded net loss of $33.24 million or $(0.07) per registered share
    which included:

    --  Sales of $115.85 million and gain after cost and expenses of mining
        operations of $16.26 million;

    --  A realized gain of $2.67 million on commodity hedges (included in
        sales) which contributed to the gross gain;

    --  An unrealized non-cash loss of $41.92 million on derivative
        financial instruments outstanding, principally as a result of
        commodity hedging positions in copper and silver.

--  Cash flow provided by operations before changes in working capital items
    was $28.47 million.


Nine months ended September 30, 2012

--  Recorded net loss of $20.07 million or $(0.04) per registered share
    which included:

    --  Sales of $326.63 million and gain after cost and expenses of mining
        operations of $54.13 million;

    --  A realized loss of $8.76 million on commodity hedges (included in
        sales) which partly net off the gross gain;

    --  An unrealized non-cash loss of $28.21 million on derivative
        financial instruments outstanding, principally as a result of
        commodity hedging positions in copper and silver.

--  Cash flow provided by operations before changes in working capital items
    was $94.51 million.


Operational highlights - MATSA:

Three months ended September 30, 2012

--  MATSA processed 527,430 tonnes of ores in 2012 versus 518,682 tonnes of
    ores in 2011 (increase of 8,748 tonnes or 1.7%).

--  Produced 28,689 DMT of copper concentrate (2011 - 28,707 DMT), 11,885
    DMT of zinc concentrate (2011 - 18,260 DMT) and 2,162 DMT of lead
    concentrate (2011 - 7,280 DMT). Contained metal production was 6,541 FMT
    of copper (2011 - 6,638 FMT), 5,338 FMT of zinc (2011 - 8,632 FMT), 0,38
    FMT of lead (2011 - 1,217 FMT) and 177,640 ounces of silver (2011 -
    235,549 ounces).

--  The Cash Operating Cost (non-IFRS measure - refer to section 6) was
    $1.52 per payable pound of copper (2011 - $1.56 per payable pound of
    copper). Reduction in Cash Operating cost in 2012 was due to a reduction
    in direct cost (US$23,68 million in 2012 versus US$25,78 in 2011), with
    similar copper production levels but significantly net off by lower by-
    credits of lead, Zinc and silver (US$9,99 million in 2012 versus
    US$11,69 in 2011).

Nine months ended September 30, 2012

--  MATSA processed 1,606,960 tonnes of ore in 2012 versus 1,499,209 tonnes
    of ore in 2011 (increase of 107,750 tonnes or 7.2%).

--  Produced 85,885 DMT of copper concentrate (2011 - 84,064 DMT), 46,916
    DMT of zinc concentrate (2011 - 50,893 DMT) and 13,483 DMT of lead
    concentrate (2011 - 23,525 DMT). Contained metal production was 19,829
    FMT of copper (2011 - 18,916 FMT), 21,936 FMT of zinc (2011 - 24,390
    FMT), 3,240 FMT of lead (2011 - 4,216 DMT) and 707,085 ounces of silver
    (2011 - 725,101 ounces).

--  The Cash Operating Cost was $1.28 per payable pound of copper (2011 -
    $1.67 per payable pound of copper). Year-to-date Cash Operating cost was
    substantially reduced in 2012. Driver for the reduction is a reduction
    on direct cost (US$69,83 million in 2012 versus US$76,94 in 2011) with
    higher copper production levels.

--  During the nine months ended September 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
    September 30, 2012, the transaction was paid.


Operational - CMC:

Three months ended September 30, 2012

--  The average copper ore grade was 0.89% in 2012 versus 1.05% in 2011.

--  CMC processed 627,929 tonnes of ore in 2012 versus 597,139 tonnes of ore
    in 2011 (increase of 30,790 tonnes or 5.16%).

--  Copper concentrate production in 2012 was 21,733 DMT versus 24,551 DMT
    in 2011 (decrease of 2,818 DMT or 11.47%).

--  Contained copper production in 2012 was 5,061 FMT versus 5,688 FMT
    tonnes in the prior year (decrease of 627 FMT or 11.02%).

--  The Cash Operating Cost in 2012 was $2.14 per payable pound of copper
    versus prior year of $1,19. Higher Cash Operating Cost in 2012 are
    driven by (i) an increase in operating cost mainly due to FX rate of
    Nuevos Soles versus USD and higher wages cost and (ii) the impact of
    lower head grade levels (from 1.05% in 2011 to 0.89% in 2012).


Nine months ended September 30, 2012

--  The average copper ore grade was 0.93% in 2012 versus 1.09% in 2011.

--  CMC processed 1,854,031 tonnes of ore in 2012 versus 1,769,167 tonnes of
    ore in 2011 (increase of 84,864 tonnes or 4.8%).

--  Copper concentrate production in 2012 was 67,399 DMT versus 72,428 DMT
    in 2011 (decrease of 5,029 DMT or 6.4%).

--  Contained copper production in 2012 was 15,586 FMT versus 17,387 FMT in
    the prior year (decrease of 1,801 FMT or 10.36%).

--  The Cash Operating Cost in 2012 was $1.89 per payable pound of copper
    versus prior year of $1.12, driven by decrease in head grades of copper
    in 2012 (from 0.93% in 2011 to 1.09% in 2012).

Summarized Financial Results

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


                               Three months ended      Nine months ended
                                September 30,           September 30,
----------------------------------------------------------------------------
(thousands of U.S. Dollars)        2012        2011        2012        2011
----------------------------------------------------------------------------
                                      $           $           $           $
Gross sales                     113.177     112.533     335.395     354.509
Realized gains on derivative
 financial instruments held
 for trading                      2.673     (52.423)     (8.763)   (171.027)
Sales                           115.850      60.110     326.632     183.482
Costs and expenses of mining
 operations                      99.589      84.196     272.501     237.499
----------------------------------------------------------------------------

Gross gain / (loss)              16.261     (24.086)     54.131     (54.017)

Expenses
Administrative expenses and
 other                            2.383       1.876       8.012       4.947
Exploration and evaluation
 expenditures                    10.055       4.816      26.973       4.816
Foreign exchange (gain) loss        737      (4.770)      2.122      (1.607)
Unrealized gain on
 derivative instruments          41.919    (164.216)     28.213    (292.656)
----------------------------------------------------------------------------
Total expenses (other
 income)                         55.094    (162.294)     65.320    (284.500)

Operating income                (38.833)    138.208     (11.189)    230.483

Net finance costs                 2.607      (4.490)      4.447       3.783
----------------------------------------------------------------------------
Income before taxation          (41.440)    142.698     (15.636)    226.700
Current income tax expense        3.337        (931)      7.067         150
Future income tax expense       (11.536)     20.042      (2.635)     25.003
----------------------------------------------------------------------------
Net income                      (33.241)    123.587     (20.068)    201.547
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Basic earnings per share ($)      (0,07)       0,27       (0,04)       0,51
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Diluted earnings per share
 ($)                              (0,06)       0,26       (0,04)       0,49
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Key operating
 statistics

CMC:

    CMC operating
     statistics
    -------------------      ------------------------ ----------------------
    Periods ended                  Three months             Nine months
    September 30,       Unit        2012        2011        2012        2011
    ------------------------------------------------------------------------

    Ore mined            t       629.048     608.008   1.903.030   1.787.493
    Ore processed        t       627.929     597.139   1.854.031   1.769.167

    Copper ore grade     %          0,89        1,05        0,93        1,09
    Concentrate grade    %            23          23          23          24
    Copper recovery
     rate                %            90          91          90          90

    Copper concentrate  DMT       21.733      24.551      67.399      72.428

    Copper contained in
     concentrate        FMT        5.061       5.688      15.586      17.387
    Gold contained in
     concentrate         oz        3.104       3.543       9.305      10.574
    Silver contained in
     concentrate         oz       74.191      79.404     220.373     240.667

    Payable copper
     contained in
     concentrate        FMT        4.819       5.424      14.848      16.588
    Payable gold
     contained in
     concentrate         oz        2.788       3.207       8.380       9.574
    Payable silver
     contained in
     concentrate         oz       66.408      71.213     197.532     215.625

    ------------------------------------------------------------------------
    Cash Operating Cost
     per lb of payable
     copper             USD  $      2,14 $      1,19 $      1,89 $      1,12
    ------------------------------------------------------------------------


MATSA:

    MATSA operating
     statistics
    ----------------------     ---------------------- ----------------------
    Periods ended                   Three months            Nine months
    September 30,          Unit       2012       2011        2012       2011
    ------------------------------------------------------------------------

    Copper ore
    Ore mined               t      287.155    257.205     839.624    878.166
    Ore processed           t      283.965    274.240     838.959    867.343

    Copper ore grade        %         1,89       2,20        2,00       2,20
    Concentrate grade       %           23         23          23         22
    Copper recovery rate    %           85         86          86         86

    Copper concentrate     DMT      20.074     22.601      62.371     72.859

    Copper contained in
     concentrate           FMT       4.547      5.184      14.256     16.336
    Silver contained in
     concentrate            oz      60.758     61.993     239.504    220.676

    Payable copper
     contained in
     concentrate           FMT       4.346      4.958      13.633     15.608
    Payable silver
     contained in
     concentrate            oz      41.396     40.193     179.346    163.966

    Polymetallic ore
    Ore mined               t      275.719    230.785     799.426    645.342
    Ore processed           t      243.465    244.442     768.001    631.866

    Zinc ore grade          %         3,90       5,39        4,34       5,71
    Zinc concentrate grade  %           45         47          47         48
    Zinc recovery rate      %           57         66          68         68


    Copper ore grade        %         1,19       1,17        1,18       1,10
    Copper concentrate
     grade                  %           23         24          24         23
    Copper recovery rate    %           69         51          69         38

    Lead ore grade          %         0,98       1,55        1,24          2
    Lead concentrate grade  %           18         18          23         18
    Lead recovery rate      %           16         33          34         39

    Zinc concentrate       DMT      11.885     18.260      46.916     50.893
    Copper concentrate     DMT       8.615      6.106      23.514     11.205
    Lead concentrate       DMT       2.162      7.280      13.483     23.525

    Zinc contained in
     concentrate           FMT       5.338      8.632      21.936     24.390
    Copper contained in
     concentrate           FMT       1.994      1.454       5.573      2.580
    Lead contained in
     concentrate           FMT         379      1.217       3.240      4.216
    Silver contained in
     concentrate            oz     116.882    173.556     467.581    504.425

    Payable zinc contained
     in concentrate        FMT       4.387      7.171      18.182     20.321
    Payable copper
     contained in
     concentrate           FMT       1.908      1.393       5.338      2.468
    Payable lead contained
     in concentrate        FMT         314        999       2.836      3.510
    Payable silver
     contained in
     concentrate            oz      70.128     97.776     281.620    303.121

    ------------------------------------------------------------------------
    Cash Operating Cost
     per lb of payable
     copper                USD        1,52       1,56        1,28       1,67
    ------------------------------------------------------------------------

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

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here