Business
Malaga reports its financial results for Q2 2009
Malaga reports its financial results for Q2 2009
About this update from Dynacor Group Inc
[{"type":"text","content":"\nMalaga reports its financial results for Q2 2009\n\n\n Aug. 13, 2009 (Baystreet.ca) -- MONTREAL -- Malaga (TSX:MLG) is pleased to report its financial results for the 3-month period ended June 30th 2009. The consolidated financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with the management's discussion and analysis are available on the Company's website at www.malaga.ca and the documents have been filed with SEDAR at www.sedar.com.\n\nQ2 2009 HIGHLIGHTS \n\n\n- Closing of a new 5-year tungsten supply contract as well as a financing\nagreement that was closed on April 1st by which Malaga received\nUS$ 5.0 million, without interest for the first 12-month period, to\nenable the completion of the upgrading of the Company's production\ncapacity from 250 tons per day to 500 tons per day\n\n- Positive cash flow generated from operating activities before change in\nnon-cash working capital items\n\n- Q2 income from sales of $2.5 million (same level as Q2 2008)\n\n- Q2 sales of 13,845 MTUs of tungsten concentrate (14,411 MTUs in\nQ2 2008)\n\n- Net loss in Q2 2009 of $1.3 million ($1.0 million in Q2 2008)\n\n- Tungsten ore grade of 0.80% as compared to 0.82% during Q2 2008\n>>\n\n\nThe existing 250 tons per day (t/d) ore processing plant will be upgraded to a capacity of more than 500 t/d (maximum planned capacity is 600 t/d). Consequently\nduring Q2 2009, Malaga increased the pace of mine development and underground exploration following the closing of the above mentioned financing agreement on April 1st. Purchasing of all the new mining equipment (front loaders, electrical carts and electrical transformers, etc) that will be needed to increase the production capacity is underway. All the necessary engineering studies have been completed and the construction phase has begun. PRODUCTION \nProduction is summarized in the table below: \n\n\nThree-month periods Six-month periods\nending June 30th ending June 30th\n----------------------------------------------------\n2009 2008 2009 2008\n-------------------------------------------------------------------------\nTon processed 22,541 21,811 42,720 42,064\n-------------------------------------------------------------------------\nGrade (%) 0.80 0.82 0.85 0.80\n-------------------------------------------------------------------------\nProdu...