It was a tough quarter for Iberian Minerals (IZN-V) and with prices of base metals fluctuating, the company warned the quarters ahead could be choppy as well.
Iberian reported a net loss of $60.5 million or 24 per share for the first quarter. That loss compares with the already substantial loss of $50.06 million for the corresponding period in 2008.
The losses were driven by unrealized losses on derivative instruments of $88 million, administration costs of $1.62 million, a finance charge of $960,000, convertible debenture interest and accretion of $460,000, foreign exchange loss of $1.45 million and current tax expenses of $4.13 million.
On the more positive side, Iberian reported that both the copper circuit and polymetallic circuits at its Aguas Tenidas project (MATSA) in Spain were put into production.
The company spent $47.44 million at the project in the quarter. Of that total, $3.68 million was for mining interest, $39.62 million for construction in progress and $4.13 million went in for machinery and equipment.
MATSA produced 1,288 tonnes of copper concentrate and 847 tonnes of zinc concentrates for revenues of $3.05 million during the first quarter of 2009, but the project is still not in commercial production.
MATSA is in the Andalucia region of Spain 110 km northwest of Seville. The company is pushing towards 1.7 million tonnes per year of processing from its underground mine and will produce copper, zinc and lead concentrates.
Revenues for the period came in at $31.24 million, mainly on the back of its CMC project in Peru – which has been in continuous production since 1998.
The mine – which sits 90 km south of Lima — produced roughly 6,000 tonnes of copper for the period as well as 4,600 oz. of gold and 62,000 oz. of silver. Cash cost came in at US$1.05 per lb of copper.
The company says the mine will continue to produce copper at similar levels to 2008 for the remainder of the year.
In Toronto on June 2 the company’s shares finished 2 higher at 45 on 1.19 million shares traded.
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