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Press release from Marketwire

International Minerals Reports $6.8 Million in Pre-Tax Income for Third Fiscal Quarter Ending March 31, 2012

Signs Agreement for Sale of Ruby Hill Royalty for $38 Million

Tuesday, May 15, 2012

International Minerals Reports $6.8 Million in Pre-Tax Income for Third Fiscal Quarter Ending March 31, 201218:00 EDT Tuesday, May 15, 2012SCOTTSDALE, AZ--(Marketwire - May 15, 2012) - International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (the "Company") reports its financial results for the third fiscal quarter ended March 31, 2012 (the "Current Quarter"). All amounts in this news release are reported in U.S. dollars.Current Quarter highlights include $6.8 million in consolidated pre-tax income and $6.2 million in consolidated net and comprehensive income after tax ($0.05 per share), including net equity income of $10.9 million from the Company's 40% interest (Hochschild Mining 60%) in the Pallancata silver mine in Peru ("Pallancata").For the nine-month period ended March 31, 2012 (the "Current Nine-Month Period"), the Company reported consolidated pre-tax income of $34.0 million and consolidated net and comprehensive income after tax of $32.5 million ($0.27 per share).Subsequent to the end of the Current Quarter, the Company has entered into a non-binding letter agreement with an arm's length third party to sell its 3% net smelter return royalty on production from Barrick Gold Corporation's Ruby Hill gold mine in Nevada (the "Ruby Hill Royalty") for cash proceeds of $38.0 million. The commercial terms of this transaction have been approved in principle by the respective Boards of both companies subject to completion of legal due diligence, regulatory approvals and finalization of a purchase and sale agreement. Closing of the transaction is expected before the end of May 2012. The Company acquired the Ruby Hill Royalty as part of the acquisition of Metallic Ventures Gold Inc. in February 2010, which also included the Goldfield and Converse gold projects in Nevada.Subsequent to the end of the Current Quarter, the Company received a $12.0 million cash distribution from Minera Suyamarca S.A.C. (which owns Pallancata), representing the Company's 40% share of a the total cash distribution of $30 million from Pallancata for the first calendar quarter of 2012.Other notable highlights for the Current Quarter include the following project updates announced in news releases: (a) on January 11, 2012, the positive results of an independent feasibility study for the Inmaculada gold-silver development project in Peru; (b) on March 20, 2012, positive results of metallurgical test work and additional drilling results at the Goldfield gold project in Nevada, together with the progress of the feasibility study scheduled to be completed this summer for a proposed open-pit heap leach gold operation; and (c) on April 20, 2012, updated mineral reserves and resource estimates for the Pallancata Mine.Highlights for the Three-Month Period Ended March 31, 2012:</b>During the Current Quarter, the Company achieved the following significant results:- Consolidated pre-tax income of $6.8 million compared to $13.1 million for the three months ended March 31, 2011 (the "Prior Year's Quarter").Income for the Prior Year's Quarter included higher earnings from Pallancata primarily because of higher silver and gold production, a higher gold by-product credit (which reduced operating costs), lower mine-site operating costs and lower Peruvian production royalties and taxes. See more detailed information below under "Pallancata Mine."- Consolidated net and comprehensive income after tax of $6.2 million (or $0.05 per share) compared to $13.1 million (or $0.11 per share) for the Prior Year's Quarter.In the Current Quarter the Company recognized $656,000 of withholding tax expense while in the Prior Year's Quarter zero income/withholding tax expense was recognized.- Cash and equivalents at March 31, 2011 decreased to $83.9 million from $86.1 million at fiscal year end June 30, 2011.The decrease in cash and equivalents is primarily a function of the Company's expenditures on its exploration and development activities at its two major gold projects in Nevada (Goldfield and Converse) offset by cash distributions from Suyamarca.- Pallancata Mine:Net equity income (Company's 40% share) of $10.9 million compared to net equity income of $16.6 million for the Prior Year's Quarter.On a 100%-basis produced approximately 1.8 million ounces of silver and 5,612 ounces of gold compared to 2.0 million ounces of silver and 7,780 ounces of gold in the Prior Year's Quarter.The Company's 40% share of production was approximately 700,000 ounces of silver and 2,245 ounces of gold compared to 800,000 ounces of silver and 3,112 ounces of gold for the Prior Year's Quarter.The decrease in gold and silver production for the Current Quarter compared to the Prior Year's Quarter was due to a decrease in the grades of both silver and gold processed due primarily to (i) the fact that the higher metal prices prevailing during the most recently completed quarter has allowed lower grade material to be mined profitably at Pallancata and (ii) operational scheduling constraints related to mine development and backfill placement.Direct site costs for the Current Quarter at the Pallancata Mine were approximately $5.34 per ounce of silver produced (after gold by-product credit) and total cash costs (as defined by the Gold Institute) were $9.48 per ounce silver (after gold by-product credit). The Prior Year's Quarter direct site costs and total cash costs were $2.68 and $5.96 per ounce of silver produced, respectively (after the gold by-product credit).- The increase in production costs per ounce of silver after gold by-product credit for the Current Quarter is caused primarily by (a) lower silver and gold production, (b) lower gold by-product credit, (c) an increase in mining costs associated with the preparation of stopes exploiting the narrower veins, and (d) increased Peruvian mining taxes (under the newly-enacted Peruvian law in late 2011, which replaced the existing royalty schedule with an operating profit-based tax increase), and (d) weakening of the U.S. dollar against the Peruvian currency.- Gross royalty revenue received by the Company from its 3% net smelter return royalty from the Barrick Gold's Ruby Hill gold mine in Nevada was $1.1 million (net royalty income was $0.7 million) compared to gross royalty revenue of $1.5 million (net royalty income of $0.3 million) for the Prior Year's Quarter.- At March 31, 2012, working capital remained robust at $57.4 million compared to working capital of $52.4 million at fiscal year end June 30, 2011.</ul>Other Financial Information for the Three-Month Period Ended March 31, 2012:</b>- Total expenses were $3.3 million compared to $2.6 million for the Prior Year's Quarter. The increase in costs in the Current Quarter was mostly due to an increase in general exploration spending and an increase in salary and benefits expense due to additional salary costs and an increase in staff support. In addition, administrative costs in Peru were primarily charged to operations as opposed to being capitalized to resource properties as in prior quarters.- Other items reduced income by $1.4 million for the Current Quarter compared to a reduction in income of $1.2 million in the Prior Year's Quarter, due mainly to foreign exchange losses of $1.5 million) which resulted from the strengthening of the Canadian dollar against the U.S. dollar. Such foreign exchange changes can significantly impact the reported carrying value of the Company's Canadian-dollar denominated convertible debentures.- The Company recognized a withholding tax expense of $656,000 for Peruvian withholding tax (4.1%) on a cash dividend received by the Company from its Peruvian subsidiary. In the Prior Year's Quarter no income tax withholding expense was reported.- At March 31, 2012, the Company's deferred income tax liability was $8.0 million, which represents the net deferred tax liability recorded on the January 2010 acquisition of Metallic Ventures. This tax liability is expected to be a non-cash item and will be amortized at such time as operations commence at the Goldfield or Converse properties or it will be expensed if they are both sold or abandoned.</ul>The Company accounts for its 40% interest in Minera Suyamarca S.A.C. (which owns the Pallancata Mine and also the Inmaculada gold-silver development property) on an equity accounting basis.Financial Results for the Nine-Month Period Ended March 31, 2012:</b>During the Current Nine-Month Period, the Company achieved the following significant results:- The Company reported pre-tax consolidated income of $34.0 million compared to $39.2 million for the nine-month period ended March 31, 2011 (the "Previous Nine-Month Period").- Consolidated net and comprehensive income after tax was $32.5 million ($0.27 per share) compared to $39.2 million ($0.33 per share) for the Previous Nine-Month Period.The decrease in net income for the Current Nine-Month Period was primarily due to a decrease in the equity income from Pallancata and withholding taxes in Peru on dividends received by the Company from its Peruvian subsidiary of $1.5 million ($nil in the same period last year). Also during the Previous Nine-Month Period, the Company reported a non-recurring gain of $2.4 million from the sale of an 11% interest in the Inmaculada gold-silver property to Hochschild.- Consolidated cash flow from operating activities was $27.6 million compared to $24.1 million for the Previous Nine-Month Period, with the decrease due to a timing difference in cash distributions from Pallancata for the Current Nine-Month Period.- Net equity income from Pallancata was $38.8 million compared to $42.7 million for the Previous Nine-Month Period. This decrease was largely a function of lower gold and silver revenue from Pallancata due to lower gold and silver production and an increase in Peruvian mining taxes under a newly-enacted Peruvian law in late 2011, which replaced the existing royalty schedule with an operating profit-based tax increase.- Net royalty income from the Ruby Hill mine was $2.2 million, compared to royalty income of $1.9 million for the Previous Nine-Month Period.</ul>Operating Statistics for the Pallancata Mine (100% Project Basis). </b>The table below reports key operating and cost statistics for Pallancata for the fiscal quarters ended March 31, 2012 and 2011, respectively, and for the calendar years ended December 31, 2011 and 2010, respectively. Results for the quarter ended December 31, 2011 are also included for comparison purposes.---------------------------------------------------------------------------- Quarter Quarter Quarter Year Year Ended Ended Ended Ended Ended 3/31/2012 3/31/2011 12/31/2011 12/31/2011 12/31/2010----------------------------------------------------------------------------Ore mined (mt) 221,556 222,746 291,607 1,039,674 1,090,948----------------------------------------------------------------------------Ore processed (mt) 257,339 242,061 293,060 1,070,467 1,071,617----------------------------------------------------------------------------Head grade-Ag (g/t) 263 303 293 301 344----------------------------------------------------------------------------Head grade-Au (g/t) 0.99 1.31 1.27 1.33 1.40----------------------------------------------------------------------------Concentrate produced (mt) 1,745 1,908 2,363 8,608 9,541----------------------------------------------------------------------------Silver production (oz) 1,780,122 2,017,735 2,288,930 8,767,394 10,135,483----------------------------------------------------------------------------Gold production (oz) 5,612 7,780 8,304 33,881 35,849----------------------------------------------------------------------------Silver sold (ozs) 1,826,000 2,327,800 2,636,200 9,063,800 9,998,000----------------------------------------------------------------------------Gold sold (ozs) 5,500 8,630 9,315 33,900 32,600----------------------------------------------------------------------------IMZ direct site costs (US$) per oz (net of gold by-product credit) 5.34 2.68 2.35 2.20 222----------------------------------------------------------------------------IMZ total cash costs (US$) per oz (net of gold by-product credit) 9.48 5.96 6.26 6.38 5.47----------------------------------------------------------------------------Notes:</b>1. The reported head grades for silver and gold are based on the overall metallurgical balance for the process plant.2. The difference between "production" and "sold" metal ounces relates to in-process concentrate. Silver sales have been rounded.3. Silver and gold ounces sold are reported as gross ounces.4. Direct site costs per ounce silver and total cash costs per ounce silver reflect a "mined ore inventory adjustment." The Company believes that this calculation more accurately matches costs with ounces of production (Also see notes 5 and 6 below).5. Direct site costs per ounce silver comprise direct mining costs, mined ore inventory adjustment, toll processing costs and mine general and administrative costs. The cost per ounce is net of gold by-product credit.6. Total cash costs, using the Gold Institute definition, comprise: mine operating costs, mined ore inventory adjustment, toll processing costs, mine general and administrative costs, Hochschild management fee, concentrate transportation and smelting costs, local and regional taxes and the government royalty. The cost per ounce is net of gold by-product credit.7. mt = metric tonnes; g/t - grams per metric tonne; oz = troy ouncesCompany Outlook</b>Through calendar year end December 31, 2012, the Company's exploration and development efforts will be focused on:- At the 40%-owned Pallancata silver mine </b>in Peru:- Working with Hochschild to continue production at the 3,000 tpd mining rate to produce approximately 8.0</b> million ounces of silver and 34,000</b> ounces of gold in calendar year 2012 (the Company's estimate on a 100% project basis).- Increasing mineral resources and reserves to extend the existing mine life (approximately 3.5 years based on current reserves as of December 31, 2011).</ul>- At the 40%-owned Inmaculada gold-silver project, also </b>in Peru:- Working with Hochschild to continue with mine development, permitting and construction with production targeted to commence prior to the end of calendar year 2013.- Continuing with an aggressive exploration program in order to expand reserves and resources.</ul>- At the 100%-owned Goldfield gold project</b> in Nevada: completing a feasibility study in the summer of 2012, with the goal of potential production in calendar 2015.- At the 100%-owned Converse gold project, also</b> in Nevada: commencing a feasibility study in the summer of 2012.- At the 100%-owned Rio Blanco gold-silver project</b> in Ecuador: continuing discussions with the Ecuadorian government with respect to the negotiation for a production contract and also to evaluate other options for maximizing shareholder value for the project.- Further reviewing the technical aspects of the approximately 60%-owned Gaby gold project</b>, also in Ecuador, and evaluate other options for maximizing shareholder value for the project.- Continuing to seek opportunities in precious metal properties in low political risk countries in the Americas, where the Company believes it can increase the value of such properties using its exploration, development, financing and administrative expertise to enhance value.</ul>Hochschild Mining plc does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.</b>To view the Company's financial statements and MD&A, please click the following link: http://www.intlminerals.com/financialreports.php Cautionary Statement:The Gold Institute calculation of Direct Site Costs and Total Cash Costs are non-IFRS financial measures, which Company management believes are useful in measuring operational performance. Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding production expectations, drilling and development programs on the Company's projects, timing of completion of economic studies and the timing of commencement of construction and production and, obtaining of required environmental and production permits. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to obtaining mining and environmental permits; mining and development risks; financing risks; risk of commodity price fluctuations; political and regulatory risks; risks related to the new mining law in Ecuador, and other risks and uncertainties detailed in the Company's Annual Information Form for the year ended June 30, 2011, which is available at www.sedar.com under the Company's name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.INTERNATIONAL MINERALS CORPORATIONCONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION(Expressed in United States dollars)(Unaudited) =========================================== March 31, June 30, July 1, 2012 2011 2010 -------------------------------------------ASSETSCurrentCash and equivalents $ 83,905,051 $ 86,127,062 $ 29,099,344 Receivables 1,313,961 4,567,909 4,192,295 Due from related party 12,075,861 557,367 - Prepaid expenses and deposits 171,349 135,969 158,772 Investments 4,504,071 4,437,839 3,082,317 ------------- ------------- ------------- Current assets 101,970,293 95,826,146 36,532,728Non-current Property, plant and equipment Investment in Ruby Hill royalty 10,111,540 11,402,904 13,409,126 Other property, plant and equipment 566,010 504,033 473,093 ------------- ------------- ------------- Total property, plant and equipment 10,677,550 11,906,937 13,882,219 Investment in associate 128,278,032 119,986,799 36,668,508 Investment in resource properties 160,092,065 141,619,839 202,263,484 Reclamation and environmental bonds 213,108 213,108 212,701 ------------- ------------- ------------- Non-current assets 299,260,755 273,726,683 253,026,912 ------------- ------------- -------------Total assets $ 401,231,048 $ 369,552,829 $ 289,559,640 ===========================================LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Accounts payable $ 2,067,923 $ 778,529 $ 2,745,732 Accrued severance and payroll costs 1,662,878 1,436,516 2,688,028 Due to related parties 11,725 73,079 11,819 Accrued interest payable on convertible debentures 734,473 187,661 174,869 Convertible debentures 40,062,187 40,944,188 - ------------- ------------- ------------- Current liabilities 44,539,186 43,419,973 5,620,448Non-current Convertible debentures - - 36,646,543 Deferred income tax liability 8,000,000 8,000,000 8,600,000 ------------- ------------- ------------- Non-current liabilities 8,000,000 8,000,000 45,246,543 ------------- ------------- -------------Shareholders' equity Capital stock 242,614,710 245,260,695 217,204,514 Reserves 4,586,356 4,774,831 7,100,512 Equity component of convertible debentures 4,945,008 4,945,008 4,945,008 Equity gain on carried interest 9,082,734 - - Retained earnings 87,463,054 63,152,322 2,666,515 ------------- ------------- ------------- Capital and reserves attributable to the shareholders of the Company 348,691,862 318,132,856 231,916,549 ------------- ------------- ------------- Non-controlling interest in subsidiary - - 6,776,100 ------------- ------------- -------------Total liabilities and shareholders' equity $ 401,231,048 $ 369,552,829 $ 289,559,640 ===========================================Nature and continuance of operationsSubsequent eventsApproved on May 14, 2012 bythe Directors: "Stephen J. Kay" Director "W. Michael Smith" Director------------------------------ ------------------------------ Stephen J. Kay W. Michael SmithINTERNATIONAL MINERALS CORPORATIONCONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Expressed in United States dollars)For the three and nine month periods ended March 31 (Unaudited) ====================================================== 3-Month 3-Month 9-Month 9-Month Period Period Period Period March 31, March 31, March 31, March 31, 2012 2011 2012 2011 ------------------------------------------------------ROYALTY INCOME Royalty income $ 1,135,335 $ 1,524,285 $ 3,660,281 $ 3,536,320 Depletion of royalty interest (410,268) (1,177,455) (1,291,364) (1,439,549) Net proceeds tax (56,767) (76,214) (183,014) (176,816) ------------ ------------ ------------ ------------ Net royalty income 668,300 270,616 2,185,903 1,919,955 ------------ ------------ ------------ ------------INCOME FROM ASSOCIATE Equity income from associate 11,211,600 16,900,800 39,749,600 43,506,226 Joint venture monitoring costs (160,537) (147,712) (392,749) (261,007) Amortization of non-reimbursable costs (180,367) (180,367) (541,101) (541,100) ------------ ------------ ------------ ------------ Net income from associate 10,870,696 16,572,721 38,815,750 42,704,119 ------------ ------------ ------------ ------------EXPENSES Amortization 15,346 11,458 40,189 28,892 General exploration 379,405 5,000 403,014 22,169 Interest and financing costs 548,050 1,005,361 1,646,042 2,928,535 Investor relations 268,111 261,807 654,975 619,349Office and general 80,946 224,697 646,315 547,363 Professional fees 254,465 211,622 580,710 405,733 Salaries and benefits 1,411,602 599,756 1,936,898 1,167,505 Stock-based compensation 163,268 164,702 338,007 482,610 Transfer agent and listing fees 88,338 94,802 175,994 144,549 Travel 45,338 24,546 130,360 123,314 ------------ ------------ ------------ ------------ Total expenses (3,254,869) (2,603,751) (6,552,504) (6,470,019) ------------ ------------ ------------ ------------OTHER ITEMS Foreign exchange (loss) gain (1,463,075) (440,494) (430,165) (1,138,503) Unrealized gain (loss) on investments 256,845 (275,527) (4,567) 1,676,949 Gain on sale of interest in resource property - - - 2,361,579 Interest income 57,118 183,265 348,625 261,044 Gain on settlement of debt - 77 - 5,794 Write-off of resource properties (288,141) (337,399) (348,604) (2,634,038) Recovery of resource properties - - - 777,280 Write-down of investment - (296,121) - (296,121) ------------ ------------ ------------ ------------ Total other items (1,437,253) (1,166,199) (434,711) 1,013,984 ------------ ------------ ------------ ------------Income before taxes 6,846,874 13,073,387 34,014,438 39,168,039Withholding tax (656,000) - (1,476,000) - ------------ ------------ ------------ ------------Net and comprehensive income after taxes $ 6,190,874 $ 13,073,387 $ 32,538,438 $ 39,168,039 ====================================================== ======================================================Earnings per common share - basic $ 0.05 $ 0.11 $ 0.27 $ 0.33Earnings per common share - diluted $ 0.05 $ 0.11 $ 0.27 $ 0.33 ======================================================Weighted average number of common shares outstanding - basic 119,586,197 119,698,271 120,134,377 117,607,617Weighted average number of common shares outstanding - diluted 119,903,351 120,995,401 120,879,295 118,617,886 ======================================================INTERNATIONAL MINERALS CORPORATIONCONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS(Expressed in United States dollars)For the three and nine month periods ended March 31 (Unaudited) ====================================================== 3-Month 3-Month 9-Month 9-Month Period Period Period Period Ended Ended Ended Ended March 31, March 31, March 31, March 31, 2012 2011 2012 2011 ------------------------------------------------------CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period $ 6,190,874 $ 13,073,387 $ 32,538,438 $ 39,168,039 Add non-cash items: Amortization 15,346 55,805 40,189 28,892 Depletion of royalty interest 410,268 1,177,455 1,291,364 1,439,549 Stock-based compensation 163,268 164,702 338,007 482,610 Unrealized foreign exchange loss (gain) 810,611 1,480,107 (755,341) 3,557,517 Unrealized (gain) loss on investments (256,845) 275,527 4,567 (1,676,949) Write-off of resource properties 288,141 337,399 348,604 2,634,038 Write-down of investment - 286,150 - 286,150 Interest and financing costs 548,050 569,483 1,646,042 2,544,178 Equity income from associate (11,211,600) (16,900,800) (39,749,600) (43,506,226) Amortization of non- reimbursable costs 180,367 180,367 541,101 541,100 Gain on sale of ownership interest - - - (2,361,579) Interest income (57,118) (183,265) (348,625) (261,044) Withholding tax 656,000 - 1,476,000 - Add cash item: Cash distributions received from associate - - 28,000,000 20,000,000 Changes in non- cash working capital items:Decrease in receivables 218,117 373,023 3,301,054 2,511,799 Increase in prepaid expenses and deposits (10,583) (166,726) (35,380) (40,600) Decrease in accounts payable (731,428) (739,445) (667,139) (739,446) Decrease in due from related parties 106,736 - 481,506 - Increase (decrease) in accrued severance and payroll costs 80,850 2,108,092 (15,867) (508,460) (Decrease) increase in due to related party (8,980) 2,019 (61,354) 11,139 Withholding tax paid - - (820,000) - ------------ ------------ ------------ ------------ Net cash (used in) provided by operating activities (2,607,926) 2,093,280 27,553,566 24,110,707 ------------ ------------ ------------ ------------CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of common shares 398,156 1,545,393 1,067,516 24,153,762 Convertible debenture interest payment - - (1,097,992) (1,099,780) Repurchase of common shares (5,897,784) - (12,508,115) - ------------ ------------ ------------ ------------ Net cash (used in) provided by financing activities (5,499,628) 1,545,393 (12,538,591) 23,053,982 ------------ ------------ ------------ ------------CASH FLOWS FROM INVESTING ACTIVITIES Resource property expenditures (3,692,966) (6,816,256) (17,186,341) (17,611,390) Proceeds from sale of property ownership interest - 15,000,000 - 15,000,000 Investments in associate - - (10,000,000) Purchase of investments - - (157,165) (148,054) Interest received 38,514 159,125 301,519 210,601 Purchase of property and equipment (62,979) (4,882) (194,999) (10,987) Reclamation / environmental bonds - 3,000 - (407) Recovery of investment in mineral properties - 777,280 - 777,280 ------------ ------------ ------------ ------------ Net cash (used in) provided by investing activities (3,717,431) 9,118,267 (17,236,986) (11,782,957) ------------ ------------ ------------ ------------Change in cash and equivalents for the period (11,824,985) 12,756,940 (2,222,011) 35,381,732Cash and equivalents, beginning of period 95,730,036 51,724,136 86,127,062 29,099,344 ------------ ------------ ------------ ------------Cash and equivalents, end of period $ 83,905,051 $ 64,481,076 $ 83,905,051 $ 64,481,076 ======================================================INTERNATIONAL MINERALS CORPORATIONCONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY(Expressed in United States dollars, except share amounts)MARCH 31, 2012 (Unaudited) ---------------------------------------------------- Capital Stock ------------------------- Equity component of Number convertible of shares Amount Reserves debentures ----------- ------------ ----------- -----------Balance July 1, 2010 115,242,581 $217,204,514 $ 7,100,512 $ 4,945,008Issued on exercise of options 976,520 6,429,334 (2,241,716) -Issued on private placement 3,655,746 20,000,000 - -Share issuance costs - (33,856) - -Stock-based compensation - - 482,610 -Forfeiture of stock options - - (312,875) -Sale of controlling interest in Quellopata - - - -Net income for theperiod - - - - ----------- ------------ ----------- -----------Balance March 31, 2011 119,874,847 $243,599,992 $ 5,028,531 $ 4,945,008 ----------- ------------ ----------- -----------Issued on conversion of debentures 2,616 18,570 - -Issued on exercise of options 420,100 1,642,133 (433,858) -Stock-based compensation - - 180,158 -Net income for the period - - - - ----------- ------------ ----------- -----------Balance June 30, 2011 120,297,563 $245,260,695 $ 4,774,831 $ 4,945,008 ----------- ------------ ----------- -----------Issued on conversion of debentures 5,813 40,425 - -Issued on exercise of options 278,000 1,593,999 (526,482) -Repurchase of common shares (2,101,600) (4,280,409) - -Stock-based compensation - - 338,007 -Equity gain on carried interest (Suyamarca) - - - -Net income for the period - - - - ----------- ------------ ----------- -----------Balance March 31, 2012 118,479,776 $242,614,710 $ 4,586,356 $ 4,945,008 ----------- ------------ ----------- ----------- ------------------------------------ Equity Non- gain controlling on carried Retained interest in Total interest earnings Total subsidiary equity ---------- ----------- ------------ ----------- ------------Balance July 1, 2010 $ - $ 2,666,515 $231,916,549 $ 6,776,100 $238,692,649Issued on exercise of options - - 4,187,618 - 4,187,618Issued on private placement - - 20,000,000 - 20,000,000Share issuance costs - - (33,856) - (33,856)Stock-based compensation - - 482,610 - 482,610Forfeiture of stock options - 312,875 - - -Sale of controlling interest in Quellopata - - - (6,776,100) (6,776,100)Net income for the period - 39,168,039 39,168,039 - 39,168,039 ---------- ----------- ------------ ----------- ------------Balance March 31, 2011 - $42,147,429 $295,720,960 $ - $295,720,960 ---------- ----------- ------------ ----------- ------------Issued on conversion of debentures - - 18,570 - 18,570Issued on exercise of options - - 1,208,275 - 1,208,275Stock-based compensation - - 180,158 - 180,158Net income for the period - 21,004,893 21,004,893 - 21,004,893 ---------- ----------- ------------ ----------- ------------Balance June 30, 2011 - $63,152,322 $318,132,856 $ - $318,132,856 ---------- ----------- ------------ ----------- ------------Issued on conversion of debentures - - 40,425 - 40,425Issued on exercise of options - - 1,067,517 - 1,067,517Repurchase of common shares - (8,227,706) (12,508,115) - (12,508,115)Stock-based compensation - - 338,007 - 338,007Equity gain on carried interest (Suyamarca) 9,082,734 - 9,082,734 - 9,082,734Net income for the period - 32,538,438 32,538,438 - 32,538,438 ---------- ----------- ------------ ----------- ------------Balance March 31, 2012 $9,082,734 $87,463,054 $348,691,862 $ - $348,691,862 ---------- ----------- ------------ ----------- ------------Notes are an integral part of the condensed consolidated interim financial statements. The complete financial statements and accompanying notes can be found on the Company's website by clicking the following link: http://www.intlminerals.com/release.php?R_ID=87&Kind=FSFOR FURTHER INFORMATION PLEASE CONTACT: For additional information, contact:ORPaul DurhamIn North America In EuropeVP Corporate RelationsOliver HolzerMarketing ConsultantTel: +1 480 483 9932OR+41 44 853 00 47ORInternet Site: http://www.intlminerals.comOr email us at: IR@intlminerals.com