logo-loader
RNS
Montero Mining and Exploration Ltd

MONTO MINERALS - Third quarter activities and cashflow reports

Third quarter activities and cashflow reports 30 APRIL 2008     LSE  ANNOUNCEMENT       Monto Minerals Limited ('Monto' or the 'Company')     THIRD  QUARTER  ACTIVITIES  AND  CASH  FLOW  REPORT   FOR  THREE  MONTHS  TO  31  MARCH  2008       FOCUS  ON  INCREASING  PRODUCTION  TO  MEET  STRONG  MARKETS   Strong market demand continued during the quarter for the high quality industrial minerals produced by Monto's 100% owned Goondicum Project in central Queensland, in particular ilmenite on international markets and phosphate rock for Australian fertiliser requirements.   Ilmenite, feldspar and phosphate rock are being delivered to customers, and sales of titanomagnetite are planned for the second half of calendar 2008.   In the first full quarter of operation for the project, the focus was on increasing production.  The utilisation rate of the processing plant increased during the quarter, but total product output did not reach expectations.   Production   Following initial production in October 2007, the operational emphasis during the March 2008 quarter was on increasing the availability of the processing plant and, consequently, lifting production to planned levels.  Production was restricted by problems in providing the plant with feed at a consistent throughput rate and by technical and training issues affecting the total time that the plant was operating.  As reported last month, unforeseen equipment modifications, power restrictions, the quality of initial ore feed and heavy rain all contributed to the lower than planned availability.   Plant availability averaged 46% during the quarter but has been increased to a rate of approximately 60% during the month of April.  Emphasis was placed on the production of ilmenite which is the Company's largest generator of revenue.     Goondicum Plant - Quarterly Production & Sales Results       Tonnes   Production Sales Ilmenite            5,456            6,077 Apatite            1,708            1,510 Feldspar            2,268   Titanomagnetite            1,150   Total          10,582            7,587   Independent engineers were engaged to examine production limiting issues and to recommend both immediate and longer term improvements, including preliminary advice on significant expansion of production capacity.  Several actions were taken to improve the performance of the plant.   These included the addition of specialist maintenance personnel and improved training for plant operators.  Further recommendations will be forthcoming progressively from the engineers' reviews.   The feldspar processing plant at Dakiel, 25km west of Goondicum, was brought into production during the quarter.   Sales and marketing   A strong emphasis continued to be placed on building relationships with customers, expanding initial markets and developing new ones.   Two consignments of ilmenite were shipped from Gladstone as part of a long term contract to supply a manufacturer of titanium dioxide pigment in South Korea.  Stimulated by the economic growth of China, Monto's high quality sulphateable ilmenite is in heavy demand in Asia where the sulphate route is the dominant process for TiO2 manufacture.   With demand for fertiliser increasing due to strong markets for farm produce, domestic organic fertiliser manufacturer Ausmin Australia continued to take delivery of all of the production of phosphate rock from Goondicum.   Deliveries of feldspar for Australian glass manufacture commenced during the quarter, being trucked to Brisbane from Monto's feldspar upgrading facility at Dakiel.   The Company continues to pursue markets for high value feldspar in finely ground form for use in paint and powder coatings.  An initial 20-tonne consignment was shipped to the United States during the quarter for market development testing, followed by a second 100-tonne shipment earlier this month.   The market outlook for titanomagnetite as a highly competitive coal washing agent in central Queensland's large coal mining industry continues to improve due to the greatly increased cost of imported magnetite.  A grinding and processing plant is expected to be in production at Goondicum during the September 2008 quarter.     Infrastructure   The Company expects to continue bearing the cost of one diesel generator for several months to supplement the mains power supply.  The Goondicum operation has still not transferred wholly to mains power due to delays in network upgrades encountered by the Queensland Government owned corporation responsible for supply.  The Company built the power line to connect Goondicum to mains power in order to significantly reduce operating costs.   Another Queensland Government owned corporation continued to face problems with the pipeline supplying water to Goondicum but these have been managed so as not to impede operations.  A failed pump at the main bore had to be replaced and further leaks in the pipeline continue to be repaired although the frequency and size of the leaks have been reducing.   Eulogie   The company is currently preparing a preliminary mine design and infrastructure layout for a Mineral Lease Application of the titanomagnetite deposit held by Monto at Eulogie in central Queensland.  Preliminary discussions were held with an interested party regarding the iron ore potential and Monto's future development options    Outlook   In the current June quarter,   - -  The Company will target increased production at Goondicum, with remedial actions identified through operating experience at the processing plant and on the advice of independent consultant engineers   - -  Further sales agreements will be pursued, including a long term ilmenite supply contract   - -  Preliminary planning for the expansion of the Goondicum operations will continue   - -  Development of additional applications of Monto's feldspar, including high value paint and powder coatings, will be continued   - -  Construction and commissioning of the titanomagnetite plant should be well advanced   - -  A review of the funding requirements for the project will be completed in order to estimate the cost for expansion and the short term working capital needs during the current period of slower than anticipated production ramp-up.   - -  The Board will continue with the process of engaging a new Chief Executive Officer to succeed Mr Geoff Moore who, as announced last week, has given notice of his intention to retire in July.   For further information on Monto Minerals, please visit the Company's website at www.montominerals.com         Enquiries to:    Geoffrey Moore Monto Minerals Ltd                 +61(0)7 3034 3100   Richard Brown Ambrian Partners Limited       +44 (0) 20 7634 4709       Background   Monto Minerals was established to develop the unique mineral resource at the Goondicum Crater, near Monto in Queensland.   The Goondicum project is a multi-product project to produce ilmenite (for paint, paper and plastic pigment), glass feldspar (for glass manufacture), ground feldspar (for paint and powder coating), apatite (for organic fertiliser) and titanomagnetite (for coal washing) for Australian and international markets.   Mine development and construction of the processing plant at Goondicum, and a washing plant at Dakiel, 25km from Goondicum, to upgrade the feldspar prior to sale are complete. Stockpiles of ilmenite, feldspar, apatite and titanomagnetite have been established at Goondicum and production rates are being increased gradually.     Monto began supplying apatite for organic fertiliser production in November 2007 and is scheduled to commence the supply of feldspar for Australian glass manufacture in February 2008. The Company also plans to sell titanomagnetite as a coal washing agent to plants at central Queensland coal mines later in 2008. \ Rule 5.3 Appendix 5B   Mining exploration entity quarterly report Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98.   Name of entity MONTO MINERALS LTD   ACN or ARBN   Quarter ended ('current quarter') 063 144 865   31 MARCH 2008   Consolidated statement of cash flows           Cash flows related to operating activities Current Year to quarter date $A'000 $A'000 1.1 Receipts from product sales and related debtors 511 520 1.2 Payments for           (a)  exploration and (26) (110) evaluation (81) (174)                                 (b)  development  (2,805) (5,874)                                 (c)  production (481) (1,406)                                 (d)  administration 1.3 Dividends received     1.4 Interest and other items of a similar nature 453 1,377 received 1.5 Interest and other costs of finance paid (320) (709) 1.6 Income taxes paid - R&D Tax Offset received   280 1.7 Other (provide details if material)   85   Net Operating Cash Flows (2,749) (6,011)         Cash flows related to investing activities 1.8 Payment for purchases of:         (a)prospects                                                0;           (b)equity investments (3,070) (22,531)                                            0;       (c) other fixed assets 1.9 Proceeds from sale of:               (a)prospects                                                0;       (b)equity investments                                            0;       (c)other fixed assets 1.10 Loans to other entities     1.11 Loans repaid by other entities     1.12 Other (provide details if material)       Net investing cash flows (3,070) (22,531) 1.13 Total operating and investing cash flows (carried     forward) (5,819) (28,542) 1.13 Total operating and investing cash flows     (brought  forward) (5,819) (28,542)           Cash flows related to financing activities 1.14 Proceeds from issues     of shares, options, etc. 1.15 Proceeds from sale of     forfeited shares 1.16 Proceeds from          borrowings 12,882 1.17 Repayment of                                  (70) borrowings      (29) 1.18 Dividends paid     1.19 Other (provide details     if material)     Capital Raising Costs   Net financing cash (29) 12,812 flows         Net increase (5,848) (15,730) (decrease) in cash held 1.20 Cash at beginning of 21,309 31,193 quarter/year to date 1.21 Exchange rate (11) (13) adjustments to item 1.20 1.22 Cash at end of quarter 15,450 15,450 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities   Current quarter $A'000       1.23 Aggregate amount of payments to                           149 the parties included in item 1.2     1.24 Aggregate amount of loans to the Nil parties included in item 1.10     1.25 Explanation necessary for an understanding of the transactions       Refer attached note Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows       2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest         Financing facilities available Add notes as necessary for an understanding of the position. The Company has an equity facility with US-Based Investment Fund Cornell Capital Partners Offshore LP as announced on 16 August 2004.     Amount available Amount used $A'000 $A'000 3.1 Loan facilities - Capital Expansion Facility 6,000 Nil   3.2 Credit standby arrangements         Estimated cash outflows for next quarter     $A'000 4.1 Exploration and evaluation        20   4.2 Development      500            520 Total     Reconciliation of cash Reconciliation of cash at the end of the quarter (as Current Previous shown in the consolidated statement of cash flows) quarter quarter to the related items in the accounts is as follows. $A'000 $A'000 5.1 Cash on hand and at bank 657 1,101 5.2 Deposits at call 2,136 7,551 5.3 Bank overdraft     5.4 Other (provide details) Cash collateralised 12,657 12,657 term deposits securing bank guarantees   Total: cash at end of quarter (item 1.22) 15,450 21,309   Changes in interests in mining tenements       Tenement Nature of Interest at Interest reference interest beginning at end of (note (2)) of quarter quarter 6.1 Interests in mining         tenements relinquished, reduced or lapsed 6.2 Interests in mining         tenements acquired or increased     Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.     Total number Number Issue Amount quoted price per paid up security per (see note security 3) (cents) (see note 3) (cents) 7.1 Preference Nil Nil Nil Nil +securities  (description) 7.2 Changes during Nil Nil Nil Nil quarter (a)  Increases through issues (b)  Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary securities           340,362,711 340,362,711 7.4 Changes during Nil Nil Nil Nil quarter     (a)     Increases   through issues (b)  Decreases through returns of capital, buy-backs 7.5 +Convertible debt 120 Secured Nil Conversion Nil securities Convertible Notes Price (description) each with a $0.25 per $100,000 face value share 7.6 Changes during Nil Nil Nil Nil quarter         (a)  Increases         through issues           Nil Nil Nil Nil (b)  Decreases through securities matured, converted 7.7 Options  (description                       Exercise Expiry and conversion         1,900,000  Nil price date factor)                26,609,526 Quoted on 45.5 Cents 25/5/2011       AIM only 15 UK 25/5/2009       1,397,000 Nil Pence          335,635 Nil   25/5/2009     2,000,000 Nil 12 UK 25/5/2012     2,880,000 Nil Pence 28/5/2012 0.1     UK 1/2/2011 Pence 19 Cents 15.6 Cents 7.8 Issued during quarter   Nil Exercise Expiry 2,880,000 price date 15.6 Cents 1/2/2011 7.9 Exercised during Nil       quarter   7.10 Expired during Nil       quarter 7.11 Debentures Nil Nil     (totals only) 7.12 Unsecured notes $15,699,818 Nil Loan Notes as (totals only)   approved by shareholders 28 May 2007     Compliance statement   1        This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).   2        This statement does give a true and fair view of the matters disclosed.     Sign here: ..............   Date  24 April 2008 (Company Secretary)       Print name: .....DANIEL ERIC HUFF......................................   Notes   1        The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position.  An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.   2        The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period.  If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.   3        Issued and quoted securities  The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.   4        The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.   5        Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities.  If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.   Appendix 5B - Notes   Mining exploration entity quarterly report Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98.     Name of entity MONTO MINERALS LTD   ACN or ARBN   Quarter ended ('current quarter') 063 144 865   31 March 2008       ITEM 1.25 PAYMENTS MADE TO DIRECTORS AND RELATED ENTITIES       Current Quarter           Year to Date $ $ (a) Reimbursement of out of 18,715   28,441 pocket expenses (b) Directors fees 51,999   162,139 (c) Office administration 0   0 costs (d) Consulting fees 0   123,664 (e) Salary and Wages 69,461   202,894 (f) Superannuation 8,750   27,068 Contributions (g) Interest Paid 0   21,477   TOTAL 148,925   565,683       - ---END OF MESSAGE---

Quick facts: Montero Mining and Exploration Ltd

Price: $0.09

Market: TSX-V
Market Cap: $1.97 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Montero Mining Presentation

Toronto One2One Forum on November 22nd

on 24/11/11