LONDON--(Marketwired - May 22, 2013) -
22 May 2013 AIM:AMA / TSX:AMZ Amara Mining plc ("Amara" or "the Company") Q1 2013 RESULTS Amara Mining plc (formerly Cluff Gold plc), the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce its results for the quarter ended 31 March 2013 ("Q1 2013"). HIGHLIGHTS Operational - Environmental Permit received for Sega Gold Project ("Sega") and construction of haul road has begun - key milestones towards bringing Sega into production in Q3 2013 - Mineral Resources at the Yaoure Gold Project ("Yaoure") increased to 1.7 million Inferred ounces (34.6Mt at 1.52g/t) and 0.3 million Indicated ounces (8.0Mt at 1.31g/t) - second Mineral Resource update expected in H2 2013 - Further encouraging results received from in-fill drilling programme at Yaoure including: o 21.0m at 7.8g/t from 23.0m in hole YDD0118 o 9.0m at 7.2g/t from 211.0m (plus 5.0m at 3.3g/t from 223.0m) in hole YDD0142 - Baomahun Gold Project ("Baomahun") Feasibility Study on track for delivery by the end of Q2 2013 - Business review and optimisation plan underway and cash conservation measures successfully implemented - Industry-leading safety record continues to strengthen - six million man-hours achieved at Kalsaka Gold Mine ("Kalsaka") to January 2013 without a lost time injury - Gold production from Kalsaka of 9,481 ounces due to anticipated lower grades and reduced plant availability as a result of crusher upgrade at a cash cost per ounce (inc. royalties) of US$1,215/oz - 2013 production guidance of 50,000-60,000 ounces maintained although expected to be second half weighted Financial - Kalsaka continues to operate profitably with EBITDA of US$3.1 million (Group EBITDA: US$1.3 million) - Robust financial position with cash and liquid assets of US$23.7 million at 31 March 2013 Corporate - Board strengthened through the appointment of the Right Honourable Peter Hain MP as Non-Executive Director Q1 2013 Q4 2012 Q1 2012 Kalsaka Total Gold Production (oz) 9,481 11,480 12,504 Cash Costs inc. Royalties (US$/oz produced) 1,215 1,051 1,068 Average Realised Gold Price (US$/oz sold) 1,618 1,708 1,701 Group Revenue (US$'000) 13,990 19,646 23,605 EBITDA (US$'000) 1,251 4,909 5,310 Basic EPS (cents) (1.68) (2.43) (0.89) Peter Spivey, Chief Executive Officer of Amara, commented:"With the optimisation of our business plan and our experience of maintaining tight control on costs, Amara is well-positioned to face the challenges of the current market. We have implemented a number of measures to improve cost efficiency, including reassessing our mine scheduling, evaluating our supply chain and curtailing exploration expenditure in order to maintain a robust financial position. We expect production to strengthen and cash costs to diminish in H2 2013 as we process higher grade ore from Kalsaka and the material from Sega becomes available, and as such we remain confident in our ability to achieve our full year production guidance. Our strategy of using cash flow to underpin our growth assets lends Amara important flexibility and we remain on track to deliver on our targets in 2013." The Company will host an analyst conference call at 9:30am UK with a simultaneous webcast. Dial in details are as follows: Telephone number (toll free from UK): 0800 634 5205 Other parts of the world: +44 (0) 208 817 9301 Passcode: 10891662 To log into the webcast, which will be aired simultaneously, please go to the homepage of the Company's website: www.amaramining.com . The webcast will subsequently be available for playback on this link. A second conference call will be hosted at 9:30am EDT/2:30pm UK time for North American analysts. Dial-in details are as follows: Canada 1866 404 5783 USA 1866 928 7517 Other parts of the world +44 (0)203 139 4830 Participant PIN Code: 12014083# For more information please contact: Amara Mining plc +44 (0)20 7398 1420 John McGloin, Chairman Peter Spivey, Chief Executive Officer Pete Gardner, Finance Director Katharine Sutton, Head of Investor Relations Canaccord Genuity Limited +44 (0)20 7523 8350 (Nominated Adviser & Broker, London) Andrew Chubb Joe Weaving Tim Redfern Pelham Bell Pottinger +44 (0)20 7861 3232 (Financial Public Relations) Charlie Vivian Lorna Spears James Macfarlane Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/2764F_1-2013-5-22.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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