Manila, Philippines - Canadian miner TVI Pacific Inc. incurred a net loss in the first quarter, a reversal of the net profits in the same period last year despite higher revenues from its Canatuan mine in Zamboanga del Norte, as metal prices dropped and its expenses increased.
In a statement, TVI said it had a net loss of $2.3 million in the first three months of the year, a reversal of its $300,000 net income in the same period last year.
TVI attributed the net loss to the decline in metal prices, as well as higher expenses.
It noted that average copper prices fell 12 percent to $3.85 per pound from $4.38 per pound in the same period a year ago.
TVI said it also saw an increase in its treatment and refining charges as negotiated and agreed to with its metal take-off partner.
Mining, milling and other expenses, it said, also rose to $9.3 million for the period from the $3.8 million incurred last year.
“Mining, milling and other expenses increased because of realization of higher costs of inventories sold during the period as a result of the consumption of additional and more expensive chemicals required to process the complex ore body, to continue to produce saleable concentrate,” it said.
It noted though that the Canatuan mine generated net revenues from the sale of concentrates, net of treatment, refining and penalties, of $14.4 million the first three months of the year, 33 percent higher than the $10.8 million in the same period last year.
TVI had one shipment of copper concentrate and one shipment of zinc concentrate in the first quarter.
TVI said that it expects to complete two copper shipments from the Canatuan mine in each remaining quarter throughout 2012.
TVIRD said earlier it has plans of extending the life of the Canatuan mine by four years from this year by exploring properties around the site.
The plan to extend the life of the Canatuan mine had earlier been threatened by an ordinance which bans open pit mining in the province.
The ordinance mandates TVIRD to halt its operations by November this year.
In January, TVIRD was granted a preliminary injunction against the implementation of the ban on open-pit mining.