Our Peru Project » Dia Bras Exploration Inc. — Canadian mining and exploration company

By: Dia Bras  09-12-2011

SOCIEDAD MINERA CORONA, S.A. - LIMA, PERU - OVERVIEW

Through its wholly owned subsidiary, Dia Bras Peru S.A.C., Dia Bras Exploration Inc. acquired Minera Corona, S.A. ("Corona") on May 26, 2011. Established in 1993, Corona is a Peruvian company engaged in the exploration, extraction, production and commercialization of mineral concentrate, principally silver, copper, lead and zinc at its Yauricocha mine in Yauyos Province, Peru.  Corona is also engaged in the production and commercialization of electric power at its Huanchor Hydroelectric Plant, located in Huarochirí Province.

Corona operates the Yauricocha Mine which produced 837,839 metric tonnes averaging 5.13 oz/t silver, 3.64% lead, 3.25% zinc and 1.00% copper in 2010, and, as shown in the tables below, Corona generated a net profit of US$48.3 million in 2010.

Corona also owns a total land package of approximately 85,000 hectares, covering the Yauricocha mine and several prospects in the Districts of Alis and Laraos,  yet to be fully explored and developed.

The tables below sets out certain consolidated financial information in respect of Corona based on Corona’s audited financial statements for the four fiscal years ended December 31, 2010.  Such information has been prepared in accordance with accounting principles generally accepted in Peru and are stated in United States dollars.

Consolidated Balance Sheet Data

As at December 31

2007

(audited)  

US$ mm

2008

(audited)

US$ mm

2009

(audited)

US$ mm

2010

(audited)

US$ mm

Assets

Cash and Equivalents

$1.1

$1.3

$9.5

$17.8

Accounts Receivable

$5.1

$5.0

$11.0

$18.7

Inventory

$9.7

$10.2

$7.6

$5.9

Pre-paid Expenses

$0.1

$0.1

$0.2

$0.2

Current Assets

$16.0

$16.7

$28.2

$42.6

Property, Plant and Equipment

$30.8

$31.5

$32.7

$30.5

Intangibles

$1.6

$1.3

$1.2

$1.2

Deferred Income Taxes

$3.7

$3.8

$5.1

$5.3

Total Assets

$52.1

$53.2

$67.2

$79.6

Liabilities

Revolving Debt

$11.0

$0.0

$6.0

$0.0

Trade Account Payables

$4.2

$3.5

$4.3

$3.4

Current Income Tax and Employee Profit Sharing

$6.0

$2.7

$5.7

$11.0

Other Accounts Payable

$5.6

$2.9

$1.0

$5.4

Current Liabilities

$26.8

$9.0

$16.9

$19.9

Long Term Debt

$0.0

$6.0

$16.2

$11.0

Other Accounts Payable

$0.0

$5.0

$0.0

$0.0

Mine Closure Provision

$8.6

$10.6

$0.0

$10.0

Total Liabilities

$35.4

$30.6

$33.1

$40.8

Common Stock

$10.2

$10.2

$10.2

$10.2

Investment Shares

$1.3

$1.3

$1.3

$1.3

Legal Reserve

$2.0

$2.0

$2.0

$2.0

Retained Earnings

$3.1

$9.1

$20.6

$25.2

Shareholders Equity

$16.6

$22.6

$34.1

$38.8

Results of Operations

For the Year Ended December 31

2007

(audited)

US$ mm 

2008

(audited)

US$ mm 

2009

(audited)

US$ mm 

2010

(audited)

US$ mm 

Net Sales

Mineral concentrates

$73.2

$85.5

$85.3

$120.5

Electric energy and power

$5.2

$7.6

$8.6

$8.1

Total Sales

$78.4

$93.1

$94

$128.6

Cost of Sales

Mineral concentrates

($23.1)

($34.7)

($39.2)

($39.0)

Electric energy and power

($3.1)

($3)

($3.5)

($3.7)

Gross Income

$26.2

$37.7

$42.7

$86.0

Sales, General and Administrative Expenses

($6.9)

($11)

($8.4)

($10.2)

Operating Income

$45.3

$44.6

$42.9

$75.8

Other Income or Expenses

($1.1)

($2.3)

($0.4)

($1.1)

Income before Income Tax and Statutory Profit Sharing

$44.2

$42.2

$42.4

$74.7

Statutory Profit Sharing

($3.3)

($3.4)

($3.3)

($5.9)

Income Tax

($11.4)

($11.7)

($11.2)

($20.5)

Net Income

$29.5

$27.2

$28

$48.3

The information in this article was current at 06 Dec 2011


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