Ivernia Sets New Quarterly Production Record

Ivernia Inc. (TSX:IVW) announced its results for the three- and six-month periods ended June 30, 2014. It recorded revenue of $41.5 million from the sale of 31,000 tonnes of concentrate containing 20,700 tonnes of lead.

Its gross profit came in at $16.1 million, while its net income after tax was $2.4 million.

Other financial highlights include:

• On March 31, 2014, we entered into an amendment to the credit facility with Sprott Resource Lending Partnership (‘Sprott’) to postpone the commencement of repayment of principal instalments from March 31, 2014 to June 30, 2014 and to allow the C$20 million principal to be repaid in equal monthly instalments over a 24 month period ending May 31, 2016 (as amended, the ‘Sprott Facility’) further strengthening our cash flow position.
• As part of amending the Sprott Facility, Ivernia closed a private placement of 41,666,667 common shares at C$0.12 per share for proceeds of C$5 million on April 11, 2014 with five existing shareholders to improve the Company’s working capital.
• As part of amending the Sprott Facility, Ivernia closed a private placement of 41,666,667 common shares at C$0.12 per share for proceeds of C$5 million on April 11, 2014 with five existing shareholders to improve the Company’s working capital.

Operational highlights include:

• A new quarterly production record was set as we produced 31,900 dry metric tonnes of concentrate containing 21,500 tonnes of lead metal representing increases of 21% and 24%, respectively, compared to the first quarter of 2014.
• Operations continue to be focused on maximizing production and sales levels and reducing costs.
• During April 2014, we switched the power station at the Mine from diesel to natural gas generators which have and will continue to result in significant costs reductions.
• For 2014, we expect to produce and sell between 80,000 and 85,000 tonnes of lead contained in concentrate and remain on target to meet the sales and production levels released in our 2014 Guidance. Head grades will reduce in the second half of the year compared to the head grades recorded during the second quarter which was anticipated in our Mine plan.

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