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
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).