MANILA, Philippines - Canadian mining firm TVI Pacific Inc., which owns local mining firm TVI Resource Development Philippines Inc., yesterday reported that its gross revenue for the third quarter rose 27 percent over the previous quarter due to a 10 percent increase in the volume of copper concentrate shipped and the completion of the first zinc concentrate shipment.
In a disclosure to the Toronto Stock Exchange, TVI said the increase in volume more than offset a decline in average copper prices which stood at $3.90 in the third quarter compared to $4.19 in the second quarter.
Production cash costs, TVI said, continued their downward trend in the third quarter 2011 decreasing 19 percent from the previous quarter, or $1.33 compared to $1.65.
TVI said stabilization of the mill process has resulted in a lower consumption of chemicals. Also contributing to the reduction of these costs was an increase in gold and silver production.
Due to the higher cadmium and arsenic levels in the copper concentrate as a result of the zinc separation process, TVI said, the company’s off-take partner had to secure an alternate destination to a smelter that could refine the copper concentrate. While efforts continue to reduce production costs as noted in the above table, it is likely that shipping and refining costs will remain at current levels for the foreseeable future.
Continuous adjustments and cost reduction initiatives, made to produce the largest volume of concentrates with the highest possible, saleable grade and metal recovery, have resulted in a net income of $3 million in the third quarter, or $0.004 per share, TVI reported.
In the 3rd quarter 2011 average throughput increased to 2,535 from 2,450 dry metric tons (DMT) per day, with almost the same copper ore grade, but considerably higher gold and silver grades compared to the previous quarter, TVI said.
The increase in throughput and gold and silver ore grade resulted in a 20 percent increase in copper pound equivalent quarter over quarter.
TVI Pacific did not disclose anything about its current problem with the open pit mining ban imposed by the local government of Zamboanga del Norte which will affect its operations at its Canatuan mine.
TVIRD is seeking a temporary restraining order (TRO) against the implementation of the Zamboanga del Norte local ordinance which would force the mining firm to close its Canatuan mine within a year.
However, TVI Pacific did mention in its disclosure that its application for additional exploration permits for areas surrounding its Canatuan mine has been halted as Environment and Natural Resources Secretary Ramon Paje awaits a new mining directive from President Aquino.