TORONTO, ONTARIO -- (Marketwired) -- 05/13/13 -- All Dollar Amounts are in U.S. Dollars ("US$") Unless Otherwise Indicated
Ivernia Inc. ("Ivernia" or, collectively with its subsidiaries, the "Company") (TSX: IVW) today reported its first quarter 2013 results. During the first quarter of 2013, the Company's Paroo Station lead mine (the "Mine") continued the preparation work required for a restart of operations. In April 2013, mining, processing and transportation operations were recommenced at the Mine.
The Company recorded net loss after tax of $7.3 million or $0.01 per common share for the first quarter of 2013, compared to net loss after tax of $1.9 million or $0.00 per common share for the same period last year.
FIRST QUARTER 2013 HIGHLIGHTS
-- Gross loss of $7.1 million for the first quarter of 2013.-- Net loss after tax of $7.3 million for the first quarter of 2013. Net loss after tax for the first quarter of 2013 includes a foreign exchange gain of $0.5 million mainly related to Rosslyn Hill Mining Pty Ltd's ("Rosslyn Hill Mining") functional currency being the A$ while Ivernia's reporting currency is the US$. The gain was as a consequence of the A$ strengthening against the US$ in the first quarter of 2013 with the US$/A$ rate increasing from 1.0392 on December 31, 2012 to 1.0426 on March 31, 2013. The foreign currency gain is mainly related to foreign exchange movements on US$ and C$ intercompany loans. These intercompany loans are with wholly owned subsidiaries of the Company and are eliminated from the Statement of Financial Position on consolidation.-- On January 29, 2013, the Company closed a C$20 million secured loan facility, bearing a monthly compounded interest rate of 12% per annum (the "Sprott Facility") with Sprott Resources Lending Partnership ("Sprott"), with a C$15 million and C$5 million drawdown made on January 29, 2013 and March 20, 2013, respectively. The Sprott Facility matures February 28, 2015.-- In conjunction with the Sprott Facility, Enirgi Group Corporation ("Enirgi Group"), the Company's majority shareholder, agreed to extend the expiry date of its fully drawn C$6 million loan facility (the "Enirgi Facility") to March 31, 2015.
-- On March 27, 2013, the OEPA issued a news release confirming that the Company had completed all of the management and monitoring plans required to restart transportation of lead carbonate concentrate from the Mine pursuant to Ministerial Statement 905, which contains the majority of the Company's new operating and transportation conditions (the "Operating Conditions").-- On March 28, 2013, the Company announced it was recommencing operations at the Mine. Mining, processing and export operations were recommenced in April 2013.-- The Mine expects to produce between 40,000 to 45,000 tonnes of lead contained in concentrate and to sell between 45,000 to 50,000 tonnes of lead contained in concentrate for the year ended December 31, 2013. Full production levels at the Mine are targeted by the end of 2013.-- The main capital project (completed in the first quarter of 2013) required prior to restart, was upgrading the infrastructure and systems around the concentrate handling process at the Mine and along the transport route including building a significant hardstanding and washdown area at the Mine.-- On December 28, 2012, the Company entered into management services agreements (the "Management Services Agreements") with Enirgi Group and its wholly owned Australian subsidiary Enirgi Metal Group Pty Ltd. ("EMG"), pursuant to which, among other things Enirgi Group is managing the day to day operations of Ivernia and EMG is managing the restart and ongoing operation of the Mine. Enirgi Group and EMG have performed well to date against the Management Services Agreements and provided the Mine with increased support and expertise.