Archipelago Resources PLC, Annual General Meeting, Oct 24, 2013
Oct 4 13
Archipelago Resources PLC, Annual General Meeting, Oct 24, 2013., at 11:00 GMT Standard Time. Location: The offices of Lawrence Graham LLP. Agenda: To cancel the admission of the company's shares to trading on AIM.
Archipelago Resources plc Reports Unaudited Consolidated Earnings Results for the Six Months and Production Results for the Second Quarter and Six Months Ended June 30, 2013; Provides Earnings Guidance for the Remainder of 2013; Reiterates Production Guidance for 2013; Announces Inaugural and Special Dividends for 2012 Payable on August 30, 2013; Announces Interim Dividend for First Half of 2013 Payable on September 27, 2013
Jul 24 13
Archipelago Resources PLC reported unaudited consolidated earnings results for the six months and production results for the second quarter and six months ended June 30, 2013. For the first half, the company reported earnings of USD 19.094 million or USD 0.033 per basic share on revenue of USD 110.92 million compared to earnings of USD 17.091 million or USD 0.028 per basic share on revenue of USD 96.957 million reported a year ago. Cash flows from in operations were USD 40.733 million compared to USD 28.521 million reported a year ago. Earnings before interest & tax were USD 36.77 million compared to USD 32.54 million reported a year ago. Profit before income tax was USD 31.46 million compared to USD 28.6 million reported a year ago. Revenue from gold and silver sales rose, due to significant increases in gold & silver volumes, up 28% and 23% respectively, resulting in gold equivalent ounces sold increasing to 74,332. This was partly offset by a fall in average realised prices, with gold down 10% to USD 1,492 per ounce and silver down 17% to USD 24 per ounce. Operating cash flows raised USD 12 million, driven by strong working capital management, offset by higher annual tax payments and installments relative to 2012. On a pre-tax basis, operating cash flows increased by USD 25 million, which was a strong result given the weak pricing environment. Profit attributable to owners of the parent was USD 17.93 million compared to USD 16.03 million reported a year ago. Payments to acquire property, plant and equipment were USD 12.114 million compared to USD 5.915 million reported a year ago. Payments for development, exploration and evaluation expenditure were USD 7.216 million compared to USD 8.979 million reported a year ago.
For the first half, the company reported production of 72,636 Au Eq oz; being increases of 20% compared to 60,386 Au Eq oz for the same period a year ago. This strong result ensured first half production was in line with management expectations, notwithstanding the significant rainfall events which impacted the first quarter 2013 result. Ore processed was 891,852 tonnes, compared to 888,184 tonnes for the first half of 2012. The company mined 1,297,239 tonnes of ore compared to 1,262,714 tonnes mined a year ago. The company totally mined 8,079,004 tonnes compared to 8,835,504 tonnes mined a year ago. Gold ounces produced were 70,662 compared to 58,846 reported a year ago. Silver ounces produced were 121,003 compared to 86,391 reported a year ago.
For the quarter, the company reported production of 41,061 Au Eq oz; being increases of 46% compared to 28,197 Au Eq oz for the same period a year ago. Plant throughput rates trended upwards over first half of 2013, in line with improved conditions for mining, with 489,940 tonnes of ore processed compared to 460,325 for the same period a year ago. The company mined 798,967 tonnes of ore compared to 608,946 tonnes mined a year ago. The company totally mined 4,679,206 tonnes compared to 4,491,189 tonnes mined a year ago. Gold ounces produced were 40,044 compared to 27,432 reported a year ago. Silver ounces produced were 67,526 compared to 50,719 reported a year ago.
The company expects the strong performance for first half of 2013 to continue for the remainder of the year.
The company reiterates its 2013 full year guidance of 140,000 to 155,000 Au Eq oz at a cash cost of USD 620 to USD 680 per oz (net of silver credits and royalties).
For the 2012 financial year, the company announced an inaugural dividend of 1.25 pence per ordinary share and a special dividend of 1 penny per ordinary share. This was subject to the resolution of various regulatory and company constitutional matters, which have been completed. Accordingly and in respect of the inaugural dividends, the company is now able to confirm that the ex-dividend date will be July 31, 2013, the record date will be August 2, 2013 and the actual payment date will be August 30, 2013.
For first half of 2013, the company also announced a further interim dividend of 0.5 pence per ordinary share. This represents approximately 11% of the company's first half 2013 cash flow. For the first half 2013 dividend, the ex-dividend date will be September 11, 2013, the record date for payment will be September 13, 2013 and the payment date will be September 27, 2013.