Ivernia Records Q4 2014 Net Loss of $101.2 Million

Ivernia Inc. (TSX:IVW) announced its results for Q4 2014, as well as the year as a whole, noting that during the fourth quarter it recorded a net loss of $101.2 million, up significantly from $16.9 million in the year-ago period. The big increase was largely the result of “an impairment of deferred tax assets and property, plant and equipment of $66.5 million and $30.4 million, respectively.”

Expanding on the impairment, the company said:

The impairment in deferred tax assets and property, plant and equipment was due to depressed LME lead prices, a weak lead price outlook, a reduction in estimated Mineral Reserves and higher treatment charges and operating costs. As a result of the continued decline in LME lead prices, the Mine commenced winding down operations on January 16, 2015 to minimize losses and conserve the value of the resource. The Mine reached full care and maintenance in early February 2015.

On a different note, operational highlights include:

• We produced 21,800 tonnes of lead metal in concentrate in the fourth quarter and 80,900 tonnes of lead metal in concentrate for the year, meeting our 2014 guidance to produce between 80,000 and 85,000 tonnes of lead metal in concentrate.
• We sold 21,500 tonnes of lead metal in concentrate during the fourth quarter and 77,600 tonnes of lead metal in concentrate for the year which was 2,400 tonnes below our 2014 guidance to sell between 80,000 to 85,000 tonnes of lead metal in concentrate.
• On January 16, 2015 we commenced transitioning the Mine’s operations to care and maintenance due to sustained depressed LME lead prices and higher treatment charges.
• The Mine is now on care and maintenance with mining having ceased in January and milling operations having ceased in early February 2015. The final shipments of lead concentrate have left the Mine and are expected to depart the Port of Fremantle by the middle of March.
• On March 10, 2015, following completion of work supporting a new independent NI 43-101 technical report effective as at December 31, 2014, we reported an approximate 18% and 54% decrease in contained metal in estimated total Measured and Indicated Mineral Resources and total Proven and Probable Mineral Reserves, respectively, with a mine life of approximately 4 years.

In a different release, Ivernia provided updated mineral resources and mineral reserves estimates for the lead deposits at its Western Australia-based Paroo Station mine. Key points are as follows:

• Total Proven and Probable Mineral Reserves estimated at approximately 6.8 million tonnes, at a head grade of 7.0% Pb, containing 475,000 tonnes of lead metal, a decrease of approximately 54.0% of contained lead metal
• Total Measured and Indicated Mineral Resources estimated at approximately 31.8 million tonnes, at a head grade of 4.4% Pb, containing 1,395,000 tonnes of lead metal, a decrease of approximately 18.0% of contained lead metal
• Estimated mine life of approximately 4 years

Click here to read the full Ivernia Inc. (TSX:IVW) press release.