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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Louvem Mines Inc. | TSXV:LOV | TSX Venture | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
Revenues were $3,092,866 for the third quarter of 2009, compared with $3,791,438 during the same period in 2008. In all, 2,926 ounces of gold were sold at an average price of US$901 (CAN$1,054) per ounce in the third quarter of 2009, compared with 4,001 ounces of gold sold at an average price of US$881 (CAN$939) per ounce for the same period in 2008. While the number of ounces of gold sold fell 27% year-over-year in the third quarter of 2009, this level represented a 24% increase over Q2 2009 levels.
Total expenses for the third quarter of 2009 were $2,873,128, compared with $2,463,743 incurred in the same period in 2008. Total operating costs for the third quarter of 2009 were $2,281,957, compared with $1,838,833 for the same period in 2008. The cash cost per ounce of gold sold increased year-over-year, from US$432 (CAN$460) in the third quarter of 2008 to US$667 (CAN$780) for this quarter, mainly due to an important drop in the recovered grade at the Beaufor Mine.
Exploration spending in the third quarter of 2009 was $225,225, compared with $284,543 in the same period in 2008, reflecting sustained efforts in exploration. Depreciation and depletion increased from $164,032 in 2008 to $166,766 in 2009, reflecting lower gold sales, offset by a higher depreciation and depletion rate per ounce of gold sold, which is calculated based on the proven and probable reserves at the Beaufor Mine.
The Company posted net earnings of $63,061, or nil per share, for the third quarter of 2009, compared with net earnings of $878,640, or $0.03 per share, for the same period in 2008. Cash flow from operations was $519,470 for Q3 2009, compared with $1,529,203 in Q3 2008.
Beaufor Mine
During the quarter ended September 30, 2009, a total of 26,912 tonnes of ore were processed, up 5% over 2008 levels. However, cash cost per ounce sold increased a substantial 54% year-over-year to US$667 (CAN$780), from US$432 (CAN$460) in 2008, driven by 31% drop in the recovered grade to 6.76 g/t (from 9.73 g/t in 2008), which was primarily attributable to lower than expected results from room-and-pillar stopes. Higher production costs were partly offset by the higher average selling price, as the quarterly average price for ounces sold increased 12% over Q3 2008 levels to CAN$1,054 (US$901).
Nine-Month Review
For the nine-month period ended September 30, 2009, revenues stood at $9,044,279, down 22% relative to revenues of $11,633,026 for the same period in 2008, reflecting the lower number of gold ounces sold. During the first nine months of 2009, 8,277 ounces of gold were sold at an average price of US$930 (CAN$1,088) per ounce, compared with 12,353 ounces of gold sold at an average price of US$878 (CAN$936) per ounce for the same period in 2008.
Operating costs for the first nine months of 2009 were $6,655,281, up 11% year-over-year, primarily due to higher mining costs and increased definition drilling at the Beaufor Mine, which increased from 6,740 metres in 2008 to 18,955 metres in 2009. Exploration costs for the first nine months of 2009 were $1,015,570, compared with $1,031,771 for the same period last year.
For the nine-month period ended September 30, 2009, the Company posted net earnings of $31,143, or nil per share, compared with net earnings of $2,760,293, or $0.11 per share, for the nine-month period ended September 30, 2008. Lower net earnings in 2009 are due to lower gold sales and higher production costs relative to 2008.
Beaufor Mine
Year-to-date, Beaufor Mine has processed a total of 79,181 tonnes of ore, 7% below 2008 levels. Cash cost per ounce of gold produced rose 51% to US$687 (CAN$804), again reflecting a substantially lower recovered grade of 6.50 g/t (versus 9.01 g/t in 2008), driven by less favourable results from room-and-pillar stopes, most notably in the second and third quarters of 2009. A total of 16,554 ounces of gold, with Louvem's share of 8,277 ounces, were sold in the first nine months of 2009, down 33% from 2008 levels, however this was partially offset by a 16% year-over-year increase in the average selling price to CAN$1,088 (US$930) per ounce.
Exploration at the Beaufor Mine
The 7,100 metres of exploration drill testing completed in the third quarter of 2009 mainly focused on the east and west extensions of the Q Zone, the depth extension of the C Zone, and the area proximal to the Perron Fault. While results have not led to any significant increase in inferred resources in the zones at depth from year-end 2008, Louvem expects to complete the detailed analysis of these drilling results by the end of this year, at which point management will evaluate all possible alternatives for the mine. Definition drilling in the zones accessible from the current infrastructure increased substantially in 2009 to 10,174 metres in the quarter versus 2,190 metres in Q3 of last year. Results from this drilling will be compiled for the Company's year-end reserve calculations.
Outlook
Louvem Mines is maintaining its exploration efforts at the Beaufor Mine and is working to lower its production costs. The Company has no long-term debt and has $5.5 million in working capital as at September 30, 2009.
Martin Rivard, President and Chief Executive Officer
About Louvem Mines Inc.
The Company has a 50% interest in the Beaufor Mine and owns other exploration properties located near Val-d'Or, in northwestern Quebec, Canada.
More information on Louvem Mines can be found on its website at: www.louvem.com.
KEY FINANCIAL DATA -------------------------------------------------------------------------- -------------------------------------------------------------------------- Three-month period Nine-month period ended September 30, ended September 30, 2009 2008 2009 2008 -------------------------------------------------------------------------- Results ($) Revenues 3,092,866 3,791,438 9,044,279 11,633,026 Net earnings 63,061 878,640 31,143 2,760,293 Cash flow from (used in) operations 519,470 1,529,203 (256,760) 4,275,202 Results per share ($) Net earnings basic - 0.03 - 0.11 Weighted average number of common shares 25,929,689 25,929,689 25,959,689 25,929,689 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- September 30, 2009 December 31, 2008 -------------------------------------------------------------------------- Financial position ($) Total assets 8,249,887 9,281,325 Working capital 5,465,557 5,468,777 Long term debt - - -------------------------------------------------------------------------- SALES AND PRODUCTION DATA -------------------------------------------------------------------------- -------------------------------------------------------------------------- Beaufor Mine - 50% Three-month period ended September 30, 2009 2008 -------------------------------------------------------------------------- Gold sales (ounces) 2,926 4,001 Production of gold (ounces) 2,842 3,163 US$ CAN$ US$ CAN$ Cash cost (per ounce sold) 667 780 432 460 Average selling price (per ounce of gold) 901 1,054 881 939 -------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- Beaufor Mine - 50% Nine-month period ended September 30, 2009 2008 -------------------------------------------------------------------------- Gold sales (ounces) 8,277 12,353 Production of gold (ounces) 7,467 13,362 US$ CAN$ US$ CAN$ Cash cost (per ounce sold) 687 804 454 484 Average selling price (per ounce of gold) 930 1,088 878 936 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Average exchange rated used for 2008: US$1 equals CAN$1.0660 2009 estimated exchange rate: US$1 equals CAN$1.1701
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Louvem Mines Inc. Martin Rivard President and Chief Executive Officer 514-397-1448 514-397-8620 (FAX) www.louvem.com
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