News Column

Red Tiger Reports Q4 2013 and Q1 2014 Results

July 31, 2014

(Expressed in US dollars except where noted as C$)

TORONTO, July 31, 2014 /CNW/ - Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported its financial and operating results for the year ended December 31, 2013 and for the three months ended March 31, 2014. This press release should be read in conjunction with the Company's audited Financial Statements for the year ended December 31, 2013, the unaudited Financial Statements for the three months ended March 31, 2014 and Management's Discussion and Analysis ("MD&A") for the corresponding periods, available on the Company's website at www.redtigermining.com and on SEDAR at www.sedar.com.

Q4 2013 Highlights

•Commercial production reached on June 30th (declared July 1st) •Comex Grade 1 Copper cathodes production of 3,320 tonnes for the second half of 2013 •Copper sales of $23,875,486 for the second half of 2013 at an average realized price(1) of $3.26 per pound •Total cash costs per copper pound(1) of $1.50 and average realized margin(1) of $1.76 per pound for the second half of 2013 •Net loss of $993,424 or $0.01 per share for the year ended December 31st•Adjusted EBITDA(1) of $8,402,653 or adjusted EBITDA per share(1) of $0.09 for the year ended December 31st•Cash of $1,064,381 as at December 31st 

(1)

Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A on page 9.



Q1 2014 Highlights

•Comex Grade 1 Copper cathodes production of 1,619 tonnes for the three months ended March 31, 2014•Copper sales of $10,955,699 for the three months ended March 31, 2014 at an average realized price(1) of $3.07 per pound •Total cash costs per copper pound(1) of $1.33 and average realized margin(1) of $1.74 per pound for the three months ended March 31, 2014•Net loss of $59,460 or $0.00 per share for the three months ended March 31, 2014•Adjusted EBITDA(1) of $4,486,110 or adjusted EBITDA per share(1) of $0.04 for the three months ended March 31, 2014•Cash of $1,116,016 as at March 31, 2014 

(1)

Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A on page 9.



Subsequent to March 31, 2014 Events

•On May 2, 2014 the Ontario Securities Commission issued a management cease trade order (the "MCTO"), as a result of the Corporation not filing its audited financial statements for the year ended December 31, 2013, and the management's discussion and analysis relating to the audited annual financial statements for the year ended December 31, 2013 within the prescribed period. The MCTO imposes restrictions on trading in the Corporation's securities by its Chief Executive Officer, Mr. Robert Wunder, and its Chief Financial Officer, Mr. David Lurie. Each of the proposed directors, being Messrs. Finskiy, Hulley, Scola, Tchetvertnykh and Wunder were directors of the Corporation at the time the MCTO was made. As of the date of this MD&A report, the MCTO remains in effect.



•Under the Deutsche Bank loan agreement, the Company is in breach of the loan covenant that requires the Company to provide DB the audited consolidated financial statements for the year ended December 31, 2013 and the condensed interim consolidated financial statements for the three month period ended March 31, 2014. Under the loan agreement, the Company is required to file the audited consolidated financial statements within 120 days of year-end and the condensed interim consolidated financial statements within 60 days of quarter-end. As a result, the Company obtained a waiver from DB, which extended the delivery date of filing the audited consolidated financial statements for the year ended December 31, 2013 to July 31, 2014 and the condensed interim consolidated financial statements for the three month period ended March 31, 2014 to August 31, 2014.

Restatement

The Company has reassessed the accounting for the following:

•Its derivative financial instruments, relating to the copper collar swap derivative, copper call option derivative and derivative asset. The Company had previously not recorded the fair value of these derivative financial instruments for the three months ended March 31, 2013. The Company also had previously not recorded the fair value of the derivative asset for the three and six months ended June 30, 2013 and the three and nine months ended September 30, 2013.  As a result, the Company's consolidated statement of financial position and consolidated statement of operations and comprehensive (loss) earnings did not reflect the appropriate fair value liability and gains (losses) for the related periods. This has been corrected retrospectively in accordance with IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, resulting in the adjustment of 2013 financial information.



•On September 30, 2013, the Company reassessed the timeline to repay the principal and cash interest to Gerald Metals. As of December 31, 2012, management had estimated that the repayment would occur on June 30, 2014, however, after reviewing the Company's estimated future monthly cash flows, it has determined that the repayment of principal debt and cash interest will occur on May 31, 2016, one month after the DB loan is repaid at which point the Gerald Metals Debt is no longer subordinated to the DB loan. As a result, the Company's consolidated statement of financial position and consolidated statement of operations and comprehensive income (loss) earnings did not reflect the appropriate Gerald Metals loan liability and gains (losses) for the three and nine months ended September 30, 2013. This has been corrected retrospectively in accordance with IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, resulting in the adjustment of 2013 financial information.•On declaring commercial production on July 1, 2013, the Company had incorrectly capitalized certain expenditures during the three and nine months ended September 30, 2013 and adjusted the inventory recovery rates from 78% to 75% as at June 30, 2013 and September 30, 2013, which resulted in restatement of accounting for inventory accounts. As a result, the Company's consolidated statement of financial position and consolidated statement of operations and comprehensive (loss) earnings did not reflect the appropriate carrying values and gains (losses) for the three and nine months ended September 30, 2013. This has been corrected retrospectively in accordance with IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, resulting in the adjustment of 2013 financial information.

Selected Operational and Financial Information





Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

OPERATING RESULTS













Mining













Ore mined

tonnes

331,465

293,355

248,342

230,432

185,742

Waste rock mined and removed

tonnes

1,297,719

997,378

1,333,793

1,047,433

821,973

Total mined

tonnes

1,629,184

1,290,733

1,582,135

1,277,865

1,007,715

Waste-to-ore ratio



3.9

3.4

5.4

4.5

4.4

Average grade of mined ore

total copper

0.91%

0.84%

0.96%

1.25%

0.84%















Crushing and Stacking













Ore crushed and stacked

tonnes

319,457

292,329

241,599

230,326

181,992

Average grade of stacked ore

total copper

1.03%

0.97%

0.96%

1.50%

0.99%















Copper cathodes produced

tonnes

1,619

1,784

1,536

1,108

949















FINANCIAL RESULTS













Copper sales(1)

$

10,955,699

12,884,804

10,990,682

-

-

Production costs

$

4,058,486

6,861,256

2,329,048

-

-

Net earnings (loss)

$

(59,460)

(5,121,019)

3,014,042

(350,792)

1,464,345

Total cash costs per copper pound(2)

$/pound

1.33

1.78

1.12

-

-

Average realized price(2)

$/pound

3.07

3.28

3.24

-

-

Average realized margin(2)

$/pound

1.74

1.50

2.12

-

-



 

(1)

Prior to the Company declaring commercial production on July 1, 2013, all previous revenues were credited against capitalized project costs.

(2)

Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A on page 9.

(3)

Total cash costs, average realized price and average realized margin are calculated on post-commercial pounds sold only.



Non-IFRS Financial Performance Measures

The Company has included certain non-IFRS measures in this press release, including "total cash cost per copper pound", "average realized price", "average realized margin", "adjusted EBITDA" and "adjusted EBITDA per share". The Company believes these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Refer to pages 11 and 12 of the Company's MD&A for the year ended December 31, 2013 and pages 9 through 11 of the Company's MD&A for the three months ended March 31, 2014 for a reconciliation of these measures.

Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's latest management discussion and analysis filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Red Tiger Mining Inc.


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