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Cash Flow
3 months 3 monthsUS$ Dec 31, 2012 Sept 30, 2012---------------------------------------------------------------------------Cash provided from operating activities 4,012,341 2,910,684Investment in exploration & development (2,265,935) (2,732,236)Investment in plant & equipment (584,623) (485,132)Debt repayments (841,144) (449,568)Proceeds from loans - 1,744,781---------------------------------------------------------------------------Increase in cash during period 320,639 988,529------------------------------------------------------------------------------------------------------------------------------------------------------
Phuoc Son Operations ending December 31, 2012 Compared to Prior Quarter
-- Gold sales at $16,115,414 increased 21%-- Ore milled (tonnes) of 82,176 increased 38%-- Gold produced (oz) of 12,083 increased 53%-- Cash operating cost per ounce of $969 decreased 13%
Bong Mieu Operations ending December 31, 2012 Compared To Prior Quarter
-- Gold sales of $5,430,799 decreased 7%-- Cost of sales of $2,429,268 decreased 31%-- Gold produced (oz) of 4,121 increased 3%-- Cash operating costs per oz of $915 decreased 18%
During the quarter ended December 31, 2012, the Company produced 16,204 ounces of gold and sold 12,570 ounces of gold, the difference being the partial payment of gold loan principal in the amount of 2,305 ounces and an increased holding of gold inventory at the end of December 2012. The final payment under the original gold loan is scheduled on May 31, 2013.
The company continued to incrementally increase production quarter on quarter ensuring production for the 2013 fiscal year will remain in line with our market guidance of 60-65k oz per annum. During the second half of 2013 the Company plans to increase processing capacity to allow processing at Phuoc Son plant at 1,400tpd from July 2013. This increased processing capacity facilitates increased production in the 2014 fiscal year of 70-75k oz per annum.
Despite a drop in grade at Phuoc Son we have increased daily throughput from 500tpd to 1,200tpd sustainably and managed to ensure that costs per tonne are declining.
In November 2012 the Company successfully restructured and extended the maturity of its current debt reducing the current portion of debt by $4.4m and reducing the fully diluted share capital by 36 million shares.
About BESRA
In keeping with the Company's objectives we are on target to meet our market guidance on production this fiscal year and have a higher target for the next fiscal year. Production from our Vietnamese mining properties is increasing and those properties have mine-life extension upside. (While currently having a limited reserve-backed mine life, their narrow vein nature provides potential for continued resource upgrades). We have exciting in-country growth prospects subject to agreeing to appropriate fiscal arrangements with the government. In this respect the operating environment in Vietnam is improving as the Vietnamese government makes new efforts to encourage investment. Additionally we continue to educate investors with potential institutional/broker site visits.
