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TORONTO , June 1, 2015 /CNW/ – Red Tiger Mining Inc., (RMN.V), (the "Company" or "Red Tiger") today reported its financial and operating results for the three months ended March 31, 2015 . This press release should be read in conjunction with the Company's unaudited Financial Statements for the three months ended March 31, 2015 and Management's Discussion and Analysis ("MD&A") for the corresponding period, available on the Company's website atwww.redtigermining.com and on SEDAR at www.sedar.com.

FIRST QUARTER HIGHLIGHTS

  • Comex Grade 1 Copper cathodes production of 620 tonnes for the three months ended March 31, 2015
  • Copper sales of $3.607,158 for the three months ended March 31, 2015 at an average realized price(1) of $2.64 per pound
  • Total cash costs per copper pound(1) of $1.38 and average realized margin(1) of $1.26 per pound for the three months ended March 31, 2015
  • Net loss of $2,932,603 or $0.03 per share for the three months ended March 31, 2015
  • Adjusted EBITDA(1) of ($453,898) or adjusted EBITDA per share(1) of $0.00 for the three months ended March 31, 2015
  • Cash of $572,537 as at March 31, 2015

 

(1)   "Total cash costs per pound", "Average realized price", "Average realized margin", "Adjusted EBITDA" and "Adjusted EBITDA per share" are non-IFRS financial performance measures with no standard meaning under IFRS. Refer to the "Non-IFRS Financial Performance Measures" section of this MD&A for reconciliations of these non-IFRS measures.

                   
    

Q1 2015

 

Q4 2014

 

Q3 2014

 

Q2 2014

 

Q1 2014

 

Q4 2013

 

Q3 2013(1)

 

Q2 2013

OPERATING RESULTS

                  

Mining

                  

Ore mined

 

tonnes

 

 

160,116

 

248,408

 

283,480

 

331,465

 

293,355

 

248,342

 

230,432

Waste rock mined and removed

 

tonnes

 

 

707,319

 

1,273,452

 

1,343,687

 

1,297,719

 

997,378

 

1,333,793

 

1,047,433

Total mined

 

tonnes

 

 

867,435

 

1,521,860

 

1,627,167

 

1,629,184

 

1,290,733

 

1,582,135

 

1,277,865

Waste-to-ore ratio

   

 

4.4

 

5.1

 

4.7

 

3.9

 

3.4

 

5.4

 

4.5

Average grade of mined ore

 

total copper

 

 

1.25%

 

1.15%

 

1.16%

 

0.91%

 

0.84%

 

0.96%

 

1.25%

                   

Crushing and Stacking

                  

Ore crushed and stacked

 

tonnes

 

2,425

 

148,241

 

250,133

 

279,910

 

319,457

 

292,329

 

241,599

 

230,326

Average grade of stacked ore

 

total copper

 

1.38%

 

1.25%

 

1.15%

 

1.29%

 

1.03%

 

0.97%

 

0.96%

 

1.50%

                   

Ore Stockpiled

                  

Ore stockpiled at end of period

 

tonnes

 

29,175

 

31,600

 

30,960

 

31,507

 

27,937

 

15,929

 

14,903

 

6,516

Average grade of ore stockpiled

 

total copper

 

1.02%

 

1.02%

 

1.01%

 

1.06%

 

0.95%

 

0.84%

 

1.01%

 

0.94%

                   

Copper cathodes produced

                  

Copper cathodes produced

 

tonnes

 

620

 

1,029

 

1,274

 

1,812

 

1,619

 

1,784

 

1,536

 

1,108

                   

 

               

FINANCIAL RESULTS 

 

 Q1 2015

 

 Q4 2014

 

Q3 2014

 

Q2 2014

 

Q1 2014

 

Q4 2013

 

Q3 2013

               
                

Copper sales(1)

  

$     3,607,158

 

$     6,357,452

 

$     8,671,348

 

$   2,466,706

 

$ 10,955,699

 

$ 12,884,804

 

$ 10,990,682

Production costs

  

$     1,378,301

 

$     1,431,511

 

$     4,556,892

 

$   6,155,323

 

$   4,058,486

 

$   6,861,256

 

$   2,329,048

Net (loss) earnings

  

$   (2,932,603)

 

$ (16,959,843)

 

$   (1,264,647)

 

$      144,871

 

$      (59,460)

 

$ (5,121,019)

 

$   3,014,042

                

Total cash costs per copper pound(2)

$/pound

 

1.38

 

1.60

 

1.73

 

1.65

 

1.33

 

1.78

 

1.12

Average realized price(2)

$/pound

 

2.64

 

2.80

 

3.09

 

3.12

 

3.07

 

3.28

 

3.24

Average realized margin(2)

$/pound

 

1.26

 

1.20

 

1.36

 

1.47

 

1.74

 

1.50

 

2.12

                

 

(1) Prior to the Company declaring commercial production on July 1, 2013 , all previous revenues were credited against capitalized project costs.
(2) Total cash costs, average realized price and average realized margin are calculated on post-commercial pounds sold only.
(3) Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A.

Non-IFRS Financial Performance Measures

The Company has included certain non-IFRS measures in this press release, including "total cash cost per copper pound", "average realized price", "average realized margin", "adjusted EBITDA" and "adjusted EBITDA per share". The Company believes these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Operations Update

As reported previously, Copper production from the Company's leaching operations began to decline in September 2014 . Investigation of the cause revealed that a sudden and unprecedented occurrence of clay materials had appeared in the ore in the south pit of the mine where the last few benches of material from a "slip" (i.e., material higher up in the mine that slid down a slope as a result of being located along a fault zone,) area were being mined. This clay material was mixed with ore sent to the crusher and distributed onto the leach pad with a dozer. This resulted in a top layer of low permeability of the heap (i.e., stacked ore on the leach pad), greatly reducing the overall permeability of the heap and hence reducing the percolation of fluid flow through the heap to the SX/EW plant.

Last November, mining was suspended in order to (a) increase permeability on the leach pad so that fresh ore could be stacked, and (b) process clay-bearing ore inventory stacked on the pad.

The first phase of the company's rehabilitation plan included, permeability testing, draining surface ponds, ripping the top surface of the heap, optimizing irrigation to the pad, updating the future mine plan with extensive blast hole data incorporated, and performing agglomeration test work.

The second phase of the plan will include: conveying clay-bearing stacked ore from the top layers of the heap to a limited footprint on part of the pad; extending the impermeable pad liner of the leach pad; and resuming mining in the north pit and stacking fresh ore on the leach pad.

The final phase of the plan will be to agglomerate and re-stack the clay-bearing ore on the leach pad.

Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's latest management discussion and analysis filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

Neither the 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 Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A.

SOURCE Red Tiger Mining Inc.

Contact:

Red Tiger Mining Inc., 120 Adelaide Street West, Suite 800, Toronto, ON, M5H 1T1, Fax: 416-361-6455, [email protected], www.redtigermining.com; David Lurie, Interim CEO, CFO and Secretary, [email protected]
 

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