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TVI Pacific 2011 Year End Results and Operational Performance

March 20, 2012

CALGARY, ALBERTA--(Marketwire - March 20, 2012) - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) ("TVI" or "the Company") today released audited, consolidated financial and operational results for the year ended December 31, 2011. This press release should be read in conjunction with the audited consolidated financial statements that have been prepared in accordance with International Financial Reporting Standards ("IFRS") and management's discussion and analysis for the years ended December 31, 2011 and 2010, and filed with certain securities regulators in Canada on March 20, 2012, and also available on our web site (tvi2014.q4web.com) and SEDAR (www.sedar.com).

2011 Year-End Highlights

-- $83.0 million in net revenue was realized from the sale of concentrates;

--  $4.6 million in net income (before tax);

--  Cash balance at year-end was $23.7 million;

--  Short term debt and lines of credit of $16.2million (average interest
    rate of 1.96%); and

--  A working capital surplus of $17.1 million

During the year ended December 31, 2011, the Canatuan mine generated revenues of $83.0 million from the sale of concentrates, net of treatment, refining and penalties and consists of seven completed shipments of copper concentrate, as compared to the $76.5 million during 2010, representing nine completed shipments. However, the treatment, refining and other charges deducted from gross revenue increased to 11.6% of the gross revenue for the year, from 4.7% in the prior year, based on the revised treatment and refining rates and freight charges as negotiated and agreed with the metal off-take partner, taking into consideration the quality of the concentrates and the change in the destination of the copper concentrate shipments.

Mining, milling and other expenses for the year ended December 31, 2011, were $48.8 million. These expenses were higher compared to the $27.8 million incurred in 2010. This was mainly due to the consumption of additional and more expensive chemicals to process the complex ore body, to continue to produce saleable copper concentrate.

Cash Position

At December 31, 2011, the Company held $23.7 million in cash that it can reinvest into further growth in the Company compared to $8.9 million at the end of 2010. The Company also held $16.2 million in various short term debt, lines of credit and term loan, at an average interest rate of 1.96%.

Operational Snapshot Quarter-Over-Quarter and Year to Date 2011

Quarter ended

Fiscal year ended

Dec. 31, 2011

March 31, 2011

June 30,  2011

Sept. 30, 2011

Dec. 31, 2011

Copper pound equivalent

   (“Cu lb eq”) produced

4,448,021

6,270,759

7,521,596

8,196,181

26,436,557

        Copper produced (lbs)

3,330,593

4,397,136

4,497,398

4,454,607

16,679,734

        Gold produced (oz)

1,035

1,378

1,886

2,949

7,248

        Silver produced (oz)

101,380

90,653

139,820

154,173

486,026

        Zinc produced (lbs)

-

1,552,986

2,486,913

4,807,455

8,847,354

Production cash cost per

   Cu lb eq (US$)(1)

2.01

1.65

1.33

1.30

1.51

Average copper price received

   (US$/lb)

4.38

4.19

3.90

3.39

3.90

Average zinc price received

   (US$/lb)

-

-

1.03

0.89

0.92




(1)    Excludes selling expenses and amortization expenses. See MD&A for definition of this non-IFRS measure.


2011 Operations Summary

The average daily throughput for the year ended December 31, 2011, was 2,389 dry metric tonnes per day. TVI is currently targeting an average daily throughput of 2,600 dry metric tonnes per day, which results in a remaining life of mine of approximately 1.6 years.

During 2011, mill throughput averaged 2,389 dry metric tonnes per day totaling 872,146 tonnes. However, as can be seen from the reserves table above, only a portion of original ore reserves was consumed due to the additional material found and mined during the year. This material, primarily mineralized schist, was used as a blending material to optimize mill recoveries and was located both inside and outside the pit shell and not included in the original ore reserves. Detailed metallurgical and ore reserve studies are currently underway to determine future processing scenarios and their potential impacts on the ore reserves and mine life.

The following table details key operating statistics for the Canatuan Sulphide Mine for the year ended December 31, 2011.


Quarter ended

Fiscal year ended

Dec. 31, 2011

March 31, 2011

June 30,  2011

Sept. 30, 2011

Dec. 31, 2011

Total tonnes processed

167,780

222,987

233,201

248,178

872,146

Average tonnes processed per day

1,864

2,450

2,535

2,698

2,389

Ore copper grade (%)

1.15

1.24

1.21

1.14

1.18

Copper recovery (%)

78.18

72.28

72.31

71.71

73.23

Copper concentrate produced

   (dry weight - t)

7,830

8,703

8,595

8,927

34,055

Average daily concentrates

   produced (dry weight - t)

87

96

93

97

93

Concentrate copper grade (%)

19.29

22.92

23.74

22.63

22.22

Concentrate gold grade (g/t)

4.11

4.92

6.83

8.95

6.27

Concentrate silver grade (g/t)

402.71

323.99

466.85

463.92

414.83

Zinc recovery (%)

-

23.83

39.51

52.28

40.20

Zinc concentrate produced

   (dry weight - t)

-

1,459

2,183

4,282

7,924

Concentrate zinc grade (%)

-

48.28

51.68

50.93

50.65

Off-take:






Copper concentrate shipped

   (dry weight - t)

4,997

10,289

11,351

9,162

35,799

Zinc concentrates shipped

   (dry weight - t)

-

-

1,395

5,344

6,739


2012 Outlook


Balabag

The plan is to deep drill at 3 sites within the planned starter pit area to investigate the deeper, underground resource potential of the area. This will also serve as 'in-fill' production drilling for the defined starter pit limit. Step-out drilling is also planned during the year.

Surface geology exploration at Balabag, west of the current Balabag Hill, will also commence during the year. This is part of the overall goal to explore the full potential of the entire MPSA area.

Pre-development activities remain ongoing and include:

--  ground preparation;

--  environmental impact assessment;

--  securing of resolutions of support from the host communities; and

--  in-house plant design has been submitted for peer review to an external
    consultant.

Preparation of an independent NI 43-101 technical report and Feasibility study is underway. A date when the reports will be published is uncertain at this time.

Greater Canatuan Tenement Area (GCTA)

The airborne geophysical survey done in 2011 utilizing the modern VTEM (Versatile Time Domain Electro-Magnetics) has identified potential exploration targets within the GCTA. Ground survey verification and a more detailed geologic surface mapping are currently underway to define potential drilling targets specially at the neighboring tenement that is within trucking distance to the current Canatuan mine/processing plant. Any mineable ore located in this area could be economically transported to the existing Canatuan plant for processing.

Malusok and SE Malusok (APSA-0023-IX)

In January 2012, TVI completed the Free Prior Informed Consent process (FPIC) for a new Mineral Production Sharing Agreement (MPSA) covering the Malusok and SE Malusok prospects. Approval was granted by the National Commission on Indigenous Peoples and all documents were forwarded to the Mines and Geosciences Bureau for review and granting of the MPSA permit.

TVI previously identified potential mineralization on this property during an early-stage exploration program which included drilling. Once the approved MPSA permit has been issued, TVI will be authorized to carry out an advanced exploration program on the property area. The goal of the program will be to target additional resources, which, if confirmed, could serve as a new ore source to the Canatuan mine.

The approval process was halted by the moratorium on new permit applications imposed by the Secretary of the Department of the Environment and Natural Resources in 2011 and may be further slowed by the Department's backlog of applications once the President of the Philippines provides the authority to the Secretary to renew the permit granting process. Timing as to the issuance of the permit is therefore uncertain at this time.

Exploration Permit Application 61 (EXPA 61)

In January 2010, the Company established a partnership and strategic alliance with DMCI-CERI, a subsidiary of DACON Corporation. In February 2010, the partners signed a joint venture agreement to conduct exploration, development and production of mineral deposits in Exploration Permit Application (EXPA) 61 located within the GCTA.

The Exploration Permit application for EXPA 61 has been submitted to the government to authorize exploration and drilling on the anomalies and prospects identified to date. However, the application process was halted by the moratorium on new permit applications imposed by the Secretary of the Department of the Environment and Natural Resources in 2011 and may be further slowed by the Department's backlog of applications once the President of the Philippines provides the authority to the Secretary to renew the permit granting process.

Tamarok Copper and Gold Prospect

In December 2009, TVI commenced exploration activities at Tamarok that included geophysical surveys and geological investigations. On April 11, 2011, TVI initiated a drill program to test an outcropping zone of porphyry copper-gold mineralization. Results from the initial four holes revealed faulting and dismemberment of the mineralization and it was decided to temporarily suspend further drilling until additional surveys could be undertaken to better define the structural setting.

Since that time, two new zones of porphyry style mineralization have been discovered in an outcrop and have been subjected to systematic soil geochemical sampling, geological mapping and magnetic surveying studies. Additional exploration activities for 2012 are currently being evaluated in view of the Zamboanga del Norte Ordinance.

Other Non-Core Opportunities

TVI is constantly evaluating non-core opportunities for additional revenue. These include possible joint ventures, equipment and facility optimization options, and cost saving initiatives that can be monetized.



About TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF)

TVI Pacific Inc. is a publicly-traded Canadian company focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is pre-developing its Balabag gold and silver project, and is carrying out exploration programs on its other North Zamboanga tenements. TVI also has an interest in an offshore Philippine oil property.

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IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Press Release constitute forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "schedule" and similar expressions. Forward-looking statements are based upon the opinions and expectations of TVI as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied. These factors include, but are not limited to, such things as general economic conditions in Canada, the Philippines and elsewhere; volatility of prices for precious metals, base metals, oil and gas; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with the exploration and development of mining properties; inherent risks associated with the exploration and development of oil and gas properties; ultimate recoverability of reserves; production, timing, results and costs of exploration and development activities; political or civil unrest; availability of financial resources or third-party financing; new laws (domestic or foreign); changes in administrative practices; changes in exploration plans or budgets; and availability of personnel and equipment (including mechanical problems). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this MD&A and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.

Forward-looking statements regarding the completion date of construction on the sulphide tailings dam are based on construction activities completed to date and advice received from third parties. Forward-looking statements regarding forward production costs and shipping and refining costs are based on current and previous mineral reserve and resource estimates, current mining and processing activities, prior experiences of management with mining and processing activities, the current development and operating plan, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements regarding the remaining mine life and resources/reserves of the Canatuan deposit are based on current and previous mineral reserve and resource estimates, current mining and processing activities, prior experiences of management with mining and processing activities, the current development and operating plan, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements respecting the copper and zinc concentrate shipping volumes and the timing of future shipments are based on the Company's previous experience with concentrate shipments, current mining and processing activities, current and previous mineral reserve and resource estimates, discussions to date with the off-take partner, efficiency and effectiveness of the sulphide plant, and the Company's overall plans, budget and strategy for Canatuan (which are all subject to change). Forward-looking statements regarding the timing and nature of exploration and drilling activities in the Greater Canatuan Tenement Area (including EXPA 61, Malusok and SE Malusok), Tamarok and the Company's other tenements in the Philippines are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, and the Company's overall plans, budget and strategy (which are all subject to change).

In certain cases, the timing of exploration activities in the Philippines is dependent upon the receipt of free prior informed consent from indigenous communities and regulatory approvals from the government of the Philippines. Forward-looking statements regarding expectations that the Company will be able to find additional ore in the Greater Canatuan Tenement Area (including EXPA 61, Malusok and SE Malusok) and that this ore can be economically transported to the existing Canatuan mill are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, management's current and previous experience with mining and processing activities at Canatuan, and the Company's overall plans, budget and strategy (which are all subject to change). Forward-looking statements regarding the timing of an updated NI 43-101 report and feasibility study for Balabag are based upon current and previous exploration activities, discussions with third-parties, and the Company's overall plans, budget and strategy for Balabag (which are all subject to change). Forward-looking statements regarding the Company's expected metal production and capital expenditures for 2012, and its ability to continue to generate revenue from its operations are based on current mining and processing activities at Canatuan, current throughput of the sulphide plant, anticipated recoveries, efficiency and effectiveness of the sulphide plant, management's prior experiences with mining and processing at Canatuan, the estimated copper and zinc mineralization of the sulphide zone at Canatuan, current and previous exploration, and the Company's overall plans, budget and strategy (which are all subject to change).

The forward-looking statements of the Company contained in this MD&A are expressly qualified, in their entirety, by this cautionary statement. Various risks to which TVI and its affiliates are exposed in the conduct of their business are described in detail in the Company's Annual Information Form for the year ended December 31, 2011, which was filed on SEDAR on March 20, 2012, and is available at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this MD&A to reflect subsequent events or circumstances, except as required by law.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

FOR FURTHER INFORMATION PLEASE CONTACT:
        TVI Pacific Inc.
        Rhonda Bennetto
        Vice President, Investor & Corporate Relations
        403.265.4356
        rhonda.bennetto@tvipacific.com

        TVI Pacific Inc.
        Laureen Dukart
        Investor Relations Coordinator
        403.265.4356
        laureen.dukart@tvipacific.com

Source: TVI Pacific Inc.