Business
Malaga: Q3 results and outlook
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)\nSymbol: MLG\nToronto Stock Exchange (TSX)\n\n\nMONTREAL, Nov. 17 /CNW Telbec/ - Malaga Inc. (TSX: MLG) reports its\nfinancial results for the three-month period ended September 30, 2008. The\nconsolidated financial statements (all currency figures appear in Canadian\ndollars unless otherwise specified) along with management's discussion and\nanalysis are available at www.malaga.ca and the documents have been filed with\nSEDAR at www.sedar.com.\n\n\nQ3 Overview\n\n\nDuring the three-month period ended September 30, 2008, the Company\nrecorded a net loss of $0.4M ($0.00 per share) compared to net earnings of\n$0.1M or $0.00 per share for the comparative period in 2007. The net loss is\ndue to the low average of tungsten grade (0.783%) milled during Q3 2008, as\ncompared to 0.927% during the same period in 2007. The loss of $0.4M\nrepresents an improvement of $0.6M in comparison with Q2 2008.\n\n\nThe Company is actively implementing a series of remedial actions to\nincrease the tungsten grade. Therefore, Malaga has invested, during the last\nthree-month period, $600,000 in mine development and has purchased $200,000 in\ncapital assets which brings the total amount invested since the beginning of\n2008 to $2.4M and $1.1M, respectively. The Huayllapon sector and the 13th\nlevel of Consuelo are expected to be operational during Q4.\n\n\nIn Q3 2008 mined tonnage increased (23,176 tons in 2008 compared to\n21,867 tons in 2007), while recovery rates remained relatively steady (81.6%\ncompared to 81.9%). The amount of tungsten concentrate sold reached 15,975\nMTU's totalling sales of $3.2M (16.044 MTU for sales of $2.8M in 2007).\n\n\nCash, cash equivalents and short-term investments were $1.1M as of\nSeptember 30, 2008, in comparison to $3.9M on December 31, 2007.\n\n\nOperating results\nSales and production are detailed below:\n\n Three-month Nine-month\n period ended period ended\n September 30 September 30\n 2008 2007 2008 2007\n\nIn MTU 15,975 16,044 42,056 31,795\n\nProduction:\n\nExtracted tonnage 23,176 21,867 65,240 40,305\nRecovery (%) 81.6 81.9 80.6 82.5\nGrade (%) 0.783 0.927 0.80 1.025\nProduction (MTU) 14,805 16,593 42,196 34,114\n\n$ US/MTU\n Cash operating cost 139 116 144 119\n Amortization and\n depreciation 31 27 32 20\n ---------- ---------- ---------- ----------\n Total operating cost 17...