NEW YORK Tungsten miner Malaga Inc. reported a $19.9-million loss in 2012 after putting its Pasto Bueno plant and mine in Peru on care and maintenance.
The company had recorded net income of almost $3 million in 2011.
The 2012 net loss was affected by a noncash impairment charge of $14.7 million and a charge of $2.6 million for the creation of provisions for impaired sales tax receivable and income tax receivable.
The impairment and provision were prompted by the reassessment of future cash flows generated by the mine following the review of technical and economical parameters resulting from the mine and plant being on care and maintenance (amm.com, Oct. 22).
Malaga logged more than $13 million in revenue during the year, including $1.1 million in copper sales. Its sales of tungsten amounted to 37,117 metric ton units (mtus) in 2012, down from 60,602 mtus in 2011.
The decrease came as production fell to 34,836 mtus in 2012 from 55,357 mtus in 2011. This was due to lower head grades and the extraction of less ore due to the mine and plant being shut.
Montreal-based Malaga said last month that it was considering selling all of its assets (amm.com, March 19).