MONTREAL, QUEBEC--(Marketwire - Nov. 12,
2009) - MDN Inc. ("MDN")(TSX:MDN) today filed interim
financial statements for the nine-month period ended September 30,
2009. The Management and Discussion Analysis as well as the interim
financial statements are available on the Company's web site at www.mdn-mines.com
and on SEDAR (www.sedar.com).
The third quarter was marked by investments focused on the development
of assets related to MDN's three sectors of activity, namely: gold
production, gold exploration and the development of mining projects
with strong growth potential. The gold production of the underground
mine at Tulawaka has increased. The drilling programs at Tulawaka
underground mine, as well as on the other properties under the control
of MDN in Tanzania and in Quebec, have generated positive results.
Taking advantage of the increase of activities and the favorable
conditions of the gold market, MDN recorded net earnings for a seventh
consecutive quarter, in spite of the unfavorable fluctuations of the
foreign exchange rate between the Canadian dollar and the American
dollar and the increase of expenses related to its recent investments.
"We are satisfied with the third quarter results and we maintain
our growth plan and our strong balance sheet. Our participation in
numerous well targeted mining events has continued to create interest
from key players in the financial markets" stated Paul-A. Girard,
President and CEO of MDN.
THIRD QUARTER 2009 HIGHLIGHTS
- Revenue of $2,790,286.
- Net income of $737,649 or 0.01 $ per share, including a loss on
foreign currency of $419,909.
- EBITDA was $1,412,674.
- As of September 30, 2009, MDN had over $20 million in available
funds, an amount which is sufficient to ensure its ongoing operations
and planned investments.
- The Tulawaka gold mine in Tanzania produced 29,489 ounces of gold
with an average grade of 8.5 g/t at a recovery rate of 94.2%. MDN's 30%
ownership interest in the Tulawaka gold mine gives it a pro-rata share
equal to 8,847 ounces of gold.
- The total cash costs to produce an ounce of gold in the quarter were
US$375.
- The Tulawaka gold mine sold 28,373 ounces of gold on the spot market
at an average price of US$948 per ounce, representing US$26.9M. The MDN
share (30%) is equal to 8,512 ounces of gold sold or US$8.1M.
- Drilling programs on the property under MDN's control started during
the third quarter, following the announcement of a $1.5M minimum
budget, with the possibility of increasing it up to $3M based on
positive drilling results. A total of 13 drill holes totalling close to
2,837 m were completed on the Isambara project.
- The Ikungu project and the geochemical soil surveys at 800 meters
space lines have been completed and cover the entire property. MMI
("Mobil Metal Ion") detailed soil sampling was also
undertaken in order to better define the extensions of the drilling
targets already identified. A first phase of drilling is currently
underway on Ikungu.
- At the Tulawaka gold mine, 6,500 meters of underground exploration
drilling program was completed since the beginning of 2009. Additional
drilling and exploration activities have been planned by the operator
following the good results of the initial program.
- The acquisition of the niobium and tantalum project, now named the
Anita Project, will be MDN's priority in the upcoming months for the
geology and metallurgy aspects, as well as its positioning in the
markets. An investment of $3.4M was made to date on the Anita project,
including $1.1 M for the scoping study.
- All Quebec exploration properties are being re-evaluated in order to
fully assess their potential.
- In the context of it normal course issuer bid filed with the Toronto
Stock Exchange on March 24, 2009, and in the course of its normal
activities, the Company during the third quarter purchased 1,131,000
shares at an average cost of $0.57 per share for a total amount of
$646,572.
SUMMARY OF OPERATING RESULTS For the three months ended September 30, 2009 2009 2008 ------------------------------------------------------------------------- (In thousands of dollars, except for amounts per share) Revenue $2,790 $6,116 Administrative expenses $1,061 $1,016 Foreign exchange gain (loss) ($420) $33 Net income (loss) $738 $5,133 Basic and diluted net earnings (loss) per share $0.008 $0.056 ------------------------------------------------------------------------- Weighted-average number of shares outstanding (in thousands) 94,939 91,580 ------------------------------------------------------------------------- SUMMARY OF THE OPERATIONAL RESULTS OF THE GOLD MINE TULAWAKA For the three months ended September 30, 2009 100% 30% (MDN) ------------------------------------------------------------------------- Gold production (oz) 29,489 8,847 Gold sales (oz) 28,373 8,512 Average sale price / oz ($ US) 948 948 Total revenue (in millions of $ US) 26.9 8.1 Production cost / oz ($ US) 375 375
About
MDN
MDN is a mining exploration and development company having adequate
financial resources to develop its very promising projects in Quebec
and in Tanzania and to search for new business opportunities that can
raise shareholder value. In addition to its 30% participation in the
Tulawaka Gold Mine, MDN is the operator and owner of a majority
interest in 35 mineral licenses totaling 621 sq km around the Tulawaka
gold mine in Tanzania, and owns a 28.75% interest in a property with a
NI 43-101 niobium and tantalum resource located in the Lac St-Jean area
of Quebec.
Forward Looking Statements
All statements in this release, other than statements of historical
fact, that address events or developments that the Company expects to
occur, are forward looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in
forward looking statements. Factors that could cause the actual results
to differ materially from those in forward-looking statements are
discussed in greater detail in the Company's most recent Annual
Information Form filed on SEDAR, which also provides additional general
assumptions in connection with these statements. Investors and others
who base themselves on the Company's forward-looking statements should
carefully consider the factors mentioned in the Annual Information Form
as well as the uncertainties they represent and the risk they entail.
The Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this press release should not be
unduly relied upon. These statements speak only as of the date of this
press release.
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