Aurcana Corporation (AUNFF.PK) Q3 2012 Earnings Call November 13, 2012 2:00 PM ET
Operator
Good afternoon ladies and gentlemen. Welcome to Aurcana Corporation 2012 third quarter webcast and conference call for Tuesday, November 13, 2012. Please be advised that this call is being recorded. I would now like to turn the call over to Mr. Catalin Chiloflischi, Manager, Investor Communications, Aurcana Corporation who will introduce you today’s speakers. Please go ahead Mr. Chiloflischi.
Catalin Chiloflischi – Manager, Investor CommunicationsWelcome everyone to Aurcana third quarter conference call and thank you very much for taking the time to be with us today. Today’s conference call will be presented by Mr. Lenic Rodriguez, President and CEO of Aurcana Corporation who will be providing investors with an overview of Aurcanas third quarter financial results as well as an update on La Negra and Shafter. After CEOs presentation today, we will open the line for questions.
For those of you who have joined us today on the webcast, we have included a number of slides to support today’s discussion. While we will be making every effort to answer all questions today, I would like to encourage everyone who will not have their questions answered during today’s call to contact us by telephone or email. Please note that in order to ask live questions you need to dial into the teleconference. Questions asked via webcast will be responded after the event.
As a reminder, in today’s call we will be discussing forward-looking information that involves unique risks concerning the business operation and financial performance of Aurcana Corporation. Accordingly, listeners should not place undue reliance on forward-looking statements. Please refer to the webcast slides for a complete forward-looking statements disclosure and general disclaimer.
With that, I would now like to turn the floor over to Mr. Lenic Rodriguez, President and CEO of Aurcana Corporation.
Lenic Rodriguez – President & CEOThank you, Catalin. Hello and welcome everyone to our call today. We are also joined on the call today by Mr. Salvador Huerta, our CFO who will also be available to answer any financial resource questions after my remarks. I am pleased to report today the highlights of Aurcanas third quarter financial results followed by an update on La Negra and Shafter.
In the third quarter of 2012, Aurcana achieved record revenue of $15 million. Our year-to-date revenue was $40.6 million. This represents a 20% increase from the same quarter last year. We are satisfied with these results since over the same period one year ago the silver prices decreased about 16% yet we were able to increase our revenues by 20%.
The company was able to produce 54% more silver ounces this quarter than it did in the same period one year ago. Aurcana produced this quarter 376,687, silver ounces and 718,063 silver ounces equivalent. The year-to-date production was 1,037,210 silver ounces and 1,899,280 silver ounces equivalent. Our silver production at La Negra this quarter accounted for 52% of the revenue, 28.1% was derived from copper; 14% from zinc and 6% from lead with the year-to-date numbers maintaining similar ratios.
The average net revenue per payable equivalent silver ounces sold, net of charges for treatment, refining and smelting $25.79 this quarter, about 15% lower than one-year ago, due to a decline in silver prices. The increase in production was achieved by mining, by milling 64% more ore than the same quarter one year ago to a total of 196,843 tons ore milled in the third quarter 2012.
La Negra mill was able to process a total of 504,005 tons of ore year-to-date. Our La Negra mine was also able to achieve a very low cash cost per silver ounce, net of by-products of only $0.10 this quarter. While the year-to-date cash cost per silver ounce net of by-products was a negative $0.21. These results make La Negra one of the lowest cash cost producers.
