Business
Malaga: Q2 2008 financial results and outlook for 2008
Malaga Inc. (malaga) Symbol: MLG Toronto Stock Exchange (TSX)
About this update from M3 Metals Corp.
[{"type":"text","content":"\n\n\n\nMalaga Inc. (malaga)\n\n\nSymbol: MLG\n\n\nToronto Stock Exchange (TSX)\n\n\nMONTREAL, Aug. 22 /CNW Telbec/ - Malaga Inc. (TSX: MLG) reports its\nfinancial results for the three-month period ending on the 30th of June 2008.\nThe consolidated financial statements (all currency figures appear in Canadian\ndollars unless otherwise specified) along with the management's discussion and\nanalysis are available for the viewing on the Malaga website at www.malaga.ca\nand the documents have been filed with SEDAR at www.sedar.com.\n\n\nQ2 Overview\n\n\nDuring the three-month period ending on the 30th of June 2008, the\nCompany recorded a net loss of $1.0M or $(0.01) per share compared to a net\nloss of $0.5M or $(0.01) per share for the comparative period in 2007. This\nincreased net loss is due to the low average tungsten grade (0.79%) milled\nduring Q2 2008 as compared to 1.14% during Q2 2007. The Company is actively\nimplementing a series of remedial actions to increase the tungsten grade,\nwhich are discussed in detail below.\n\n\nIn Q2 2008 mined tonnage increased (21,811 tons compared to 18,438 tons\nin Q2 2007), recovery rates increased (81.6% compared to 74.9% in Q2 2007) but\nthe amount of tungsten concentrate sold dropped to 14,411 MTU's totalling\n$2.5M (15,044 MTU in Q2 2007) due to the low tungsten grades encountered in\nthe mine.\n\n\nCash, cash equivalents and short-term investments totalling $1,886,861 as\nat June 30, 2008 and working capital was $900,000 on June 30, 2008.\n\n\nIn order to develop new higher grade mining zones, during the last\nthree-month period Malaga has invested $800,000 in mine development and has\npurchased $300,000 in capital assets which brings the total amount invested\nsince the beginning of 2008 to $1,800,000 and $900,000, respectively.\n\n\nFinally, during the quarter the Company reinforced its financial and\ntechnical expertise by nominating A. Michel Lavigne, Jean C. Lavoie,\nLuc Filiatreault and Paul Cregheur to its Board of Directors.\n\n\nOperating results\n\n\nMetal sales and production\n\n\nMetal sales are:\n\n\n Three-month period Six-month period\n ended June 30 ended June 30\n 2008 2007 2008 2007\n\nIn MTU 14,411 15,044 26,260 15,044\n\nProduction :\n\nExtracted tonnage 21,811 18,438 42,064 18,438\nRecovery (%) 81.6 74.9 80.4 74.9\nGrade (%) 0.79 1.14 0.81 1.14\nProduction (MT...