MONTREAL, QUEBEC -- (Marketwire) -- 02/21/13 -- Osisko Mining Corporation (the "Company" or "Osisko") (TSX: OSK)(FRANKFURT: EWX) is pleased to report that it has generated net earnings of $9.6 million ($0.02 per share) during the fourth quarter of 2012 versus net earnings of $37.8 million in the fourth quarter of 2011 ($0.10 per share).
For the year of 2012, its first full year of operations, the Company generated net earnings of $78.4 million ($0.20 per share) compared to net earnings of $18.0 million ($0.05 per share) in the previous year. The Canadian Malartic Mine, the Company's flagship asset, reached commercial production on May 19, 2011.
Earnings from mine operations for the fourth quarter amounted to $68.1 million compared to $39.5 million in the corresponding period of 2011. For the year, Canadian Malartic generated earnings from mine operations of $239.7 million compared to $79.5 million in 2011.
Sean Roosen, President and Chief Executive Officer, commenting on the results: "Despite the various challenges that we faced, we generated cash from mine operations(1) of $305.6 million, which clearly demonstrates the strength of Canadian Malartic. The past year had its challenges as we continued ramping up Canadian Malartic to its nameplate capacity. In the fourth quarter we were affected by delays in executing a major blast over old underground mine workings which reduced our operating flexibility and impacted our mining plan. We anticipate Canadian Malartic will generate improved and strong cash flow once the ramp up phase is completed later this year."
-- Gold production of 101,544 ounces at an average cash cost1 of $903 per ounce for the quarter, 388,478 ounces at an average cash cost of $909 per ounce for the year;-- Operating cash flow(2) of $77.7 million, 66.7% higher than in 2011 for the quarter and $273.7 million for the year;-- Free cash flow(3) of $15.0 million for the quarter;-- Write down of portfolio investments for $16.3 million for the quarter and $19.4 million for the year;-- Completion of the Queenston Mining Inc. acquisition;-- Receipt of modifications to the Canadian Malartic operating parameters.1) Reconciliation of non-IFRS measures is provided under Note RegardingCertain Non-IFRS Measures of Performance of this press release.2) Before change in non-cash working capital items.3) Free cash flow is equivalent to the increase in cash and cash equivalentson the consolidated statement of cash flows for the three months endedDecember 31, 2012.
Fourth quarter production was affected by changes to the mining plan caused by a delay of approximately 60 days in executing a 940,000-tonne blast over previously mined underground stopes, blasting constraints and access to the north pit wall. The delay restricted access to a number of areas and the mine was forced to lay-off contractors and reduced the utilization of the mining fleet. Lower grade material was processed from the available stockpile. Production was also affected by several mill shutdowns to modify crushing and conveying systems and the installation of the second pebble crusher.