ACTIVITIES / MINING
April 13, 2011
La Mancha has published its 2010 financial annual results. The company recorded a new growth: as the production increased by 30% and the net earnings more than doubled. "The achievements of 2010 clearly show the gains achieved over the last four years." stated Dominique Delorme, President of La Mancha.
The consolidated gold production for 2010 reached a record 122,571 ounces, compared to 94,570 ounces of gold for 2009. The gold production was up 30% year-over-year and 125% from four years ago.
The resulting consolidated record gold production generated net earnings of roughly $24 million and an operating cash flow of nearly $60 million.
White Foil mine became La Mancha's fourth producing asset and second mine to be put to production in less than two years.
On the basis of a positive preliminary economic assessment for its VMS (volcanogenic massive sulphide ) project in Sudan, the Company's total production should boost to over 200,000 ounces of gold by 2013.
The cash influx enabled La Mancha to fully repay the outstanding $16.1 million on the debt facility contracted with AREVA in 2007. The Company's cash and cash equivalents and short-term investments stood at $38.4 million as of December 31, 2010, marking an increase of $16.9 million since December 31, 2009.