During the second quarter 2014 ("Q2 2014"), the Company generated revenues of $69.8 million, cash flow from operations of $8.4 million, a net loss of $3.0 million (loss of $0.01 per share, basic) or an adjusted net income* of $5.2 million (adjusted earnings of $0.02 per share).
"Continued quarter over quarter improvements in productivity and lower costs allowed our Mineral Park Mine to generate $11.0 million in operating cash flows this quarter, the highest since Q3 2011, " stated D. Bruce McLeod, President and CEO of Mercator. "Continued positive operating cash flows will allow Mineral Park to sustain the productivity gains made and to pursue additional low capital productivity improvements that are designed to provide further cost reductions."
Q2 2014 HIGHLIGHTS AND OTHER SIGNIFICANT ITEMS
* Alternative Performance Measures: do not have standardized meaning under IFRS. Readers should refer to "Alternative Performance Measures" section of the Q2 2014 MD&A for additional information.
- Copper equivalent** production of 19.4 million pounds, comprised of 8.8 million pounds of copper in concentrates and cathode and 2.6 million pounds of molybdenum in concentrates.
- Copper and molybdenum sales in Q2 2014 were 8.9 million pounds and 2.5 million pounds, respectively, which generated revenues of $69.8 million, or 9% higher than in Q2 2013. Despite the lower metal sale volumes, the primary reason for the higher revenues were the higher molybdenum prices realized ($16.00 per pound) and higher copper prices realized ($3.27 per pound) in Q2 2014 as compared to Q2 2013. The higher molybdenum prices realized were a result of higher molybdenum prices, and positive mark-to-market adjustment on molybdenum in concentrate sales. Despite lower copper prices in Q2 2014 than in Q2 2013, the higher copper prices realized were due to positive mark-to-market adjustment on copper in concentrate sales related to deliveries in prior periods.
- Total cash cost, as determined on a co-product accounting basis, for Q2 2014 was $2.43 per pound of total copper produced and $12.66 per pound of molybdenum produced as compared to $2.75 per pound of copper produced and $10.46 per pound of molybdenum produced in Q2 2013.
- Cash flow from operating activities was $8.4 million (the highest since Q3 2011), with $11.0 million from Mineral Park as a stand-alone operation.
- Unrestricted cash at June 30, 2014 was $9.2 million.
**Copper equivalent production: 2014 copper equivalent production is calculated using a Mo/Cu ratio of 4.15 and 4.65 for 2013.
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