All Dollar Amounts are in U.S. Dollars Unless Otherwise Indicated
Ivernia Inc. ("Ivernia" or the "Company") (TSX:IVW) today reported its third
quarter 2011 financial results. The Company's Magellan Mine continued in care
and maintenance throughout the third quarter of 2011 and did not ship any
concentrate.
The Company recorded a net loss after tax of ($21.9) million, or ($0.03) per
common share, for the third quarter of 2011 compared with net income after tax
of $28.8 million, or $0.15 per common share for the same period last year.
The Company recorded an operating loss of ($29.5) million for the third quarter
of 2011 compared with an operating income of $31.1 million for the same period
of 2010. Included in the operating loss for the third quarter of 2011 is a
foreign exchange loss of ($21.7) million, mainly related to Magellan Metals'
functional currency being the A$ while Ivernia's functional currency is the US$.
Of this foreign exchange loss, ($19.7) million related to unrealized losses on
Magellan Metals' intercompany loans denominated in US$ and C$. These
intercompany loans are with wholly owned subsidiaries of the Company and
eliminated from the Statement of Financial Position on consolidation. In the
third quarter of 2010, the foreign exchange gain for the period was $24.4
million.
2011 THIRD QUARTER HIGHLIGHTS
Financial
-- Operating loss of ($29.5) million for the third quarter of 2011.
Includes a foreign exchange loss of ($21.7) million mainly related to
Magellan Metals' functional currency being the A$. Of this foreign
exchange loss, ($19.7) million related to unrealized losses on Magellan
Metals' intercompany loans denominated in US$ and C$.
-- As at November 9, 2011 the Company had approximately $8.8 million in
cash to fund ongoing care and maintenance activities at the Magellan
Mine.
-- The Company holds approximately 10,100 tonnes of lead carbonate
concentrate inventory with a carrying value of $7.8 million as of
September 30, 2011. Magellan Metals will not be in a position to ship
the inventory until it has been issued its final amended operating
conditions by the Western Australian government and completes all
required actions to be in compliance with these conditions.
-- The Company will require further financing to fund the ongoing care and
maintenance and restart of the Magellan Mine. On November 14, 2011 the
Company received a non-binding commitment letter from Sentient
confirming the commitment of Sentient to provide sufficient funding to
Green SEA Resources Inc. ("GSR") to allow GSR to subscribe for up to
67.576 million common shares of Ivernia in a non-brokered private
placement, at a market price to be determined and to close before March
31, 2012. The Company intends to invite a number of other institutional
and accredited investors who are existing shareholders in the Company
the opportunity to participate in a financing on equivalent terms. The
Company will seek to raise up to C$10 million in this financing with GSR
and other investors.
Operational
-- On October 3, 2011 the Environmental Protection Authority of Western
Australia ("EPA") released its report to the Minister for Environment of
Western Australia (the "Minister") entitled Section 46 Report and
Recommendation of the Environmental Protection Authority (the "Section
46 Report"). The Section 46 Report included draft recommended
environmental conditions for any future operations at the Magellan Mine
and transportation of lead carbonate concentrate from the Magellan Mine.
The Section 46 Report is now with the Minister who will consult with key
stakeholders before making any final decision.
-- Magellan Metals provided submissions to the Office of the Environment
Protection Authority ("OEPA") and Minister on the future operating
conditions for the Magellan Mine.
-- Substantially completed the end-to-end review of the effectiveness of
Magellan Metals risk management and compliance systems.
-- The Company does not expect to be in a position to make a decision on
restarting the Magellan Mine until after the Minister issues the final
operating conditions and Magellan Metals completes a review of these
final operating conditions and their potential impact on any restart
plans. The Company cannot provide guidance on the timing of the issuance
of the final operating conditions by the Minister nor on their content.
-- In November 2011, Ivernia notified Prairie Downs Metals Limited ("PDML")
that it would soon meet its initial A$3 million expenditure threshold
and, as a result, will enter into a further expenditure program for a
minimum additional expenditure of A$2 million to be completed by June
2013. At the end of this additional expenditure program, the Company
will have the option to purchase a 60% interest in the Prairie Downs
Project for A$10 million in cash or Ivernia common shares (at Ivernia's
election).
FINANCIAL AND OPERATING HIGHLIGHTS
The following table is a summary of Ivernia's financial and operating highlights
for the three months and nine months ended September 30, 2011 and 2010:
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------------
(in thousands of United States
dollars, unless otherwise
indicated and per share 2011 2010 2011 2010
amounts) $ $ $ $
----------------------------------------------------------------------------
Financial Highlights
Revenue (37) 34,268 11,272 60,523
Operating costs (5,165) (28,411) (31,176) (61,975)
----------------------------------------------------------------------------
Gross (loss) profit (5,202) 5,857 (19,904) (1,452)
General and administrative (2,245) (2,069) (7,183) (6,042)
Severance costs - - (1,127) -
Share based compensation (315) (33) (351) (114)
Foreign exchange (loss) gain (21,732) 24,379 (11,598) 13,304
Other (expenses) income (14) 2,986 371 2,296
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Operating (loss) profit (29,508) 31,120 (39,792) 7,992
Interest income 145 270 471 485
Interest expense (139) (1,482) (540) (4,088)
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(Loss) income before tax (29,502) 29,908 (39,861) 4,389
Income tax recovery (expense) 7,554 (1,139) 10,359 2,991
----------------------------------------------------------------------------
Net (loss) income (21,948) 28,769 (29,502) 7,380
Unrealized (loss) gain on
investments (4) 118 (77) 87
Foreign currency translation
differences 8,556 (9,280) 5,533 (4,395)
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Comprehensive (loss) income (13,396) 19,607 (24,046) 3,072
----------------------------------------------------------------------------
Basic (loss) income per share(1) (0.03) 0.15 (0.05) 0.04
----------------------------------------------------------------------------
Fully diluted (loss) income per
share(1) (0.03) 0.06 (0.05) 0.02
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Weighted average shares
outstanding - thousands 675,745 189,243 622,848 189,010
----------------------------------------------------------------------------
Cash (used in) provided by
operations before changes in
non-cash working capital (7,661) 4,697 (23,490) (6,979)
----------------------------------------------------------------------------
Cash flow used in operating
activities (8,711) (250) (32,866) (984)
----------------------------------------------------------------------------
Operating Highlights
Ore milled - (000's tonnes) - 259 161 559
Average head grade - (% lead) N/A 7.4% 6.9% 6.8%
Recovery - (%) N/A 76% 73% 72%
Concentrate produced - (000's
dry tonnes) - 22.6 12.7 42.1
Concentrate sold - (000's dry
tonnes) - 26.1 6.8 47.9
Lead metal in concentrate
produced - (000's tonnes) - 14.6 8.1 27.2
Lead metal in concentrate sold -
(000's tonnes) - 16.9 4.4 30.9
Concentrate inventory - (000's
of dry tonnes) 10.1 2.7 10.1 2.7
Average lead price - LME cash
settlement- ($ per pound) 1.12 0.92 1.15 0.94
Ivernia's average lead sale
price - ($ per pound) - 1.05 1.13 0.97
Cash cost per pound sold - ($
per pound)(2) N/A N/A N/A N/A
----------------------------------------------------------------------------
(1) Per share data was calculated on the basis of the weighted average
shares outstanding (basic and diluted) for the relevant period.
(2) Cash cost per pound sold is a non-IFRS measure. Cash cost of lead sold
is not currently meaningful as the Magellan Mine worked through the
issues surrounding the Order, transportation delays and then care and
maintenance during the first and second quarters of 2011. Upon the
restart of operations of the Magellan Mine and once the Magellan Mine
achieves steady state production run rates information about the cash
cost of lead sold will be reintroduced.
OPERATIONS REVIEW - MAGELLAN MINE
Ivernia restarted operations at the Magellan Mine in late February, 2010. A
ramp-up of operations took place throughout 2010. On December 31, 2010 Magellan
Metals received a stop order from the Acting Minister for Environment of Western
Australia (the "Stop Order") relating to the transport of lead carbonate
concentrate from the Magellan Mine. Transportation operations from the Magellan
Mine were immediately halted upon receipt of the Stop Order. The Stop Order was
replaced by a subsequent order issued on January 3, 2011 from the Minister for
Environment of Western Australia (the "Order") with respect to cessation of
transportation of lead carbonate concentrate from the Magellan Mine. Magellan
Metals stopped mining and processing operations at the Magellan Mine commencing
January 5, 2011 until February 23, 2011 when the Minister for Environment
announced the lifting of the Order. Following the lifting of the Order, Magellan
Metals commenced a ramp up of operations. On April 5, 2011 Magellan Metals
announced that it had voluntarily ceased transportation and operations as a
result of the detection of a small amount of lead bearing mud on the outside of
one of its shipping containers at the Port of Fremantle. On April 7, 2011 the
Company announced that it had commenced placing the Magellan Mine on care and
maintenance.
There was no production in the third quarter. At the time that the transport
operations were stopped in April there were approximately 10,100 tonnes of lead
concentrate on site at an estimated average concentrate grade of 64% lead,
containing approximately 6,450 tonnes of lead. This concentrate is stored in
sealed bags and protected from the weather. Prior to the recommencement of any
shipping operations, the cleanliness and integrity of all bags will be verified.
Principal activities during the third quarter of 2011 focused on: advancing the
internal end-to-end review of Magellan Metals' risk management and compliance
systems; providing its views to the Western Australian Government in regards to
its future operating conditions; and completing Magellan Metals' internal
inquiry into the source and extent of lead bearing mud that was found on certain
shipping containers. A key focus of these activities is to ensure enhanced
systems and procedures are put in place to prevent a reoccurrence of such
incidents in the future and to identify a robust, sustainable business model
that will deliver uninterrupted operations upon restart.
On October 3, 2011 the EPA released its report to the Minister entitled Section
46 Report and Recommendation of the Environmental Protection Authority (the
"Section 46 Report"). In the Section 46 Report the EPA states: "...that the
current transport and handling methods are more than sufficient to protect human
health and the environment" and that "The transportation of the bulk bags in
shipping containers is over and above what is required and is best practice".
The Section 46 Report, which is described in greater detail below, included
draft recommended environmental conditions for any future operations at the
Magellan Mine and transportation of lead carbonate concentrate from the Magellan
Mine. Whilst the EPA stated that: "...the conditions placed on Magellan are much
stricter than would normally be required for the transport and monitoring of
this type of product", the Company is confident it can develop and implement the
necessary systems and processes to meet these draft recommended environmental
conditions. The Section 46 Report is now with the Minister who will consult with
key stakeholders before making any decision.
The Company cannot, at this time, provide any specific guidance on when the
Company will restart operations at the Magellan Mine. The Company does not
expect to be in a position to make a decision on restarting the Magellan Mine
until after the Minister issues the final operating conditions and Magellan
Metals completes a review of these final operating conditions and their
potential impact on any restart plans. The Company cannot provide guidance on
the timing of the issuance of the final operating conditions by the Minister nor
on their content. The length of time between making the decision to restart the
Magellan Mine and the actual commencement of operations at the Magellan Mine may
be affected by several factors, including the content of the final operating
conditions and pre-operational ramp-up. For instance, the final operating
conditions may require that Magellan Metals complete certain actions prior to
the recommencement of transportation from the Magellan Mine. In addition,
following a decision to restart and prior to commencing a restart of operations
at the Magellan Mine, Magellan Metals would need to undergo a significant
recruiting and training effort. Once the restart of the Magellan Mine has
commenced, the Company expects that it would take greater than six months of
operations before the mine and processing plant would be operating at full
production levels.
The table below summarizes quarterly mine production, process plant production,
shipments and inventories for the quarter and year to date.
Three Nine
months months
Three months Three months ended ended
ended March ended June September September
31, 2011 30, 2011 30, 2011 30, 2011
----------------------------------------------------------------------------
Mining
Ore mined - 000's tonnes(1) 150 24 - 174
Low grade ore mined - 000's
tonnes(2) 34 8 - 42
Total ore and waste mined -
000's bcm 264 52 - 316
----------------------------------------------------------------------------
Processing
Ore milled - 000's tonnes 145 16 - 161
Average head grade - % lead 6.8 7.1 - 6.9
Average recovery - % 74 71 - 73
Concentrate produced - 000's
dry tonnes 11.4 1.3 - 12.7
Concentrate grade - % lead 64 63 - 64
Lead metal in concentrate
produced - 000's tonnes 7.3 0.8 - 8.1
----------------------------------------------------------------------------
Sales and inventories
Concentrate sold - 000's dry
tonnes 3.9 2.9 - 6.8
Concentrate grade - % lead 64 65 - 65
Lead metal in concentrate sold
- 000's tonnes 2.5 1.9 - 4.4
Concentrate inventory - 000's
dry tonnes 12.6 10.1 10.1 10.1
----------------------------------------------------------------------------
(1) Ore mined does not include low grade ore
(2) Low grade ore is 1.5 to 2.5% lead
Developments Related to the Magellan Mine
Ivernia restarted operations at the Magellan Mine in late February, 2010. A
ramp-up of operations took place throughout the year and mining and processing
operations continued to January 5, 2011 when a temporary shutdown occurred due
to the Order. Mining and processing operations recommenced following an
announcement by Ivernia of February 23, 2011 of the lifting of the Order and
continued until shortly after a further announcement by the Company on April 5,
2011 stating that all transportation had been voluntarily halted and an orderly
shutdown of operations had commenced due to the detection of lead bearing mud on
certain shipping containers. With the uncertainty surrounding the results of the
mud on containers and what would be the third transportation disruption since
December 31, 2010 the decision was made to undertake an end-to-end review of
Magellan Metals' compliance systems and business practices before the
recommencement of transportation would resume. As such, the Magellan Metals
management commenced an orderly shutdown of operations and the mine was placed
on care and maintenance.
On April 7, 2011 Magellan Metals had a significant container inventory at the
mine site with the majority of these containers containing lead carbonate
concentrate in sealed two tonne bags. To avoid incurring additional demurrage
charges, Magellan Metals unloaded some of the containers and stored the bagged
concentrate at the mine site. This unloading process took place during the
months of April, May and June; 250 empty containers were cleaned, inspected and
returned to the Port of Fremantle. Magellan Metals also purchased 144 containers
that were on site for bagged concentrate storage purposes. As at November 14,
2011 Magellan Metals continues to hold significant bagged lead carbonate
concentrate stockpiles at the mine site of approximately 10,100 tonnes which are
inspected on a daily basis.
During the current care and maintenance period, the mine and processing plant
have been maintained in a state of readiness for a restart of operations and on
the basis of minimizing the amount of time required for a ramp-up of operations
to full production levels. All process vessels have been drained, flushed and
inspected with minor repairs conducted and the process vessels then refilled
with water to prevent corrosion. All major equipment including mills, motors,
pumps and agitators are operated on a routine basis to ensure that they are in
good working order. Power supply has been rationalized in line with reduced
power requirements. At the start of the care and maintenance period, all haul
roads were secured. The mine has remained in a geotechnically stable condition
throughout the care and maintenance period.
Since entering the care and maintenance period, Magellan Metals has
substantially completed its internal comprehensive end-to-end review of all its
compliance activities and response systems related to the Magellan Mine,
including the mining, processing, transporting and management of lead carbonate
production and export functions with the final review expected to be completed
by the end of November. The objective of the end-to-end review is to prevent an
ongoing pattern of temporary disruptions to operations and to further reduce
risks associated with the wide range of potential events that can impact on
compliance with what the Company believes are the most stringent transport
conditions placed on any Western Australian mining operation.
During the fourth quarter of 2011, the Company delivered to the OEPA an internal
report on its inquiry into the source and extent of lead bearing mud on
containers from April 2011. The inquiry identified that interruptions to
Magellan Metal's normal transport routine from late December 2010 to March 2011
resulted in containers being stored at Magellan Metal's Wiluna mine site and the
Leonora rail yard for extended and much longer than usual periods. During this
time exceptionally heavy rain resulted in mud and water runoff accumulating in
areas where containers were stored and mud contacting the containers. Subsequent
extremely hot temperatures dried the mud and hardened it on the base of the
containers. Attempts to physically sample the mud during the inquiry indicated
that the mud was hard baked and required vigorous physical scraping to remove.
These conditions had not previously been encountered during Magellan Metals'
sealed, double lined bags in locked shipping container transport process, and
risk assessments had not identified this as being a foreseeable risk from the
container handling, storage and transport process. The risk of mud baking hard
onto containers was therefore not regulated or controlled by the Company's
operating conditions and/or the Health, Hygiene, Environmental Monitoring
Program that regulates Magellan Metals' transport operations.
Independent inspection of the containers prior to leaving the Magellan Mine did
not report or identify the mud they observed on containers as an issue, likely
due to their focus on inspecting for lead carbonate concentrate dust.
The mud on the containers is likely to have come from more than one source, and
include mud from both the Magellan Mine at Wiluna and the Leonora rail yard. At
least some of the lead in the mud originated from the Magellan Mine at some
time, most likely from naturally occurring lead carbonate and historical mining
and transport operations.
There is no evidence that the source of the lead in the mud was from the double
lined bagged lead carbonate concentrate within the locked shipping containers.
At no time was there was any risk from the mud on the containers, or its
removal, to public safety or to the environment.
Based on the results to date of the Company's end-to-end review and the findings
from the Company's internal inquiry into the source and extent of lead bearing
mud on containers, the Company has identified a number of minor capital
projects, risk reduction exercises, management plan redrafting and internal
training exercises that it will undertake prior to restarting operations.
In the fourth quarter of 2011, the Company will continue its internal planning
process for a restart of operations; however, as previously mentioned, no
decision on a restart of operations can be made until final operating conditions
are issued by the Minister. A successful restart will be dependent on ensuring
key personnel are in place. The care and maintenance team was carefully selected
to ensure core skills were retained to allow for an efficient restart and the
care and maintenance personnel are expected to fill key managerial, supervisory
and staff roles in processing, maintenance, OHS&E, finance and logistics.
Section 46 Inquiry and Review of Magellan Mine Operating and Transport Conditions
In the third quarter of 2011, as part of working with the EPA on its Section 46
Report, Magellan Metals continued to make submissions to the EPA with respect to
proposed amendments to the Health, Hygiene and Environmental Management and
Monitoring Programs and the Interim Implementation Conditions.
In October 2011, the EPA released the Section 46 Report detailing its
recommendations of the operating conditions for the Magellan Mine ("Draft
Recommended Conditions"). The Section 46 Report is available on the EPA website.
A link to the Section 46 Report, which includes the Draft Recommended
Conditions, can be found on the Magellan Metals' website at:
www.magellanmetals.com.au/compliance/ministerial-conditions.aspx.
The Section 46 Report provides EPA recommendations on Magellan Metals' operating
conditions for the Minister's consideration. The Minister will now consider the
Section 46 Report and decide on the final content of Magellan Metals' operating
conditions.
Pursuant to the Environmental Protection Act of 1986 of Western Australia, the
Interim Implementation Conditions remain in place pending the Minister's
consideration of the Section 46 Report and Draft Recommended Conditions
resulting from the full inquiry and review of Magellan Metals' operating
conditions by the EPA pursuant to the Section 46 Report. The full text of the
Interim Implementation Conditions is posted on the Magellan Metals website at
www.magellanmetals.com.au.
The Draft Recommended Conditions contain recommended changes to the Interim
Implementation Conditions and recommended conditions that must be satisfied
prior to the recommencement of transportation of any lead carbonate concentrate
from the Magellan Mine. The Draft Recommended Conditions, in general, preserve
and, in some cases, enhance the already strict auditing, monitoring and
reporting requirements currently imposed on Magellan Metals.
The Draft Recommended Conditions require that Magellan Metals provide the EPA
with a report from an acceptable independent expert summarizing the
environmental impacts and parameters of downstream processing options including
smelting lead into ingots. While the Company has not changed its historical
position with respect to the feasibility of a smelter or refinery, in June of
2011, the Company commenced a new study into the viability of downstream
processing of its concentrates given the significant increase in mineral
reserves at Magellan in 2011, the changing lead concentrate market and improved
economic climate since the last review was completed in 2008. For greater
certainty, the Company can provide no guidance on the expected conclusions of
the study.
The Company cannot provide any guidance on the content or timing for the
finalization of the Minister's review and issuance of the final operating
conditions nor can the Company provide any guidance whether the final operating
conditions will be materially different from the Draft Recommended Conditions.
Capital Resources and Working Capital Requirements
As at November 9, 2011 the Company had approximately $8.8 million in cash to
fund ongoing care and maintenance activities at the Magellan Mine and the costs
associated with the restart of the Magellan Mine, if and when a restart decision
is made. The Company expects to continue to have negative cash flows during the
care and maintenance period. These negative cash flows may be offset by any
revenue generated from the sale of stockpiled lead carbonate concentrate held at
the Magellan Mine. However, Magellan Metals will not be able to commence the
shipping of stockpiles prior to the release of the final operating conditions by
the Minister. Further, the final operating conditions, once issued, may require
that Magellan Metals fulfill certain conditions to the satisfaction of the
regulators prior to the recommencement of transportation from the Magellan Mine.
Accordingly, the Company cannot provide any guidance on the timing for the
shipment of stockpiles from the Magellan Mine.
As announced on October 3, 2011 due to the uncertainty on restarting the
Magellan Mine, the Company reported that it anticipated it will require
additional financing. On November 14, 2011 the Company received a non-binding
commitment letter signed by Sentient confirming the commitment of Sentient to
provide sufficient funding to GSR to allow GSR to subscribe for up to 67.576
million common shares of Ivernia in a non-brokered private placement at a market
price to be determined and to close before March 31, 2012. The non-binding
commitment is subject to customary conditions, including: approval by the GSR
board of directors; negotiation, execution and delivery of definitive legal
documents; no order, ruling or decision being issued by a court or regulatory or
administrative authority that precludes or restricts the issuance or trading of
Ivernia common shares; and receipt by Ivernia of all necessary board, regulatory
and stock exchange approvals. The Company intends to invite a number of other
institutional and accredited investors who are existing shareholders in the
Company the opportunity to participate in a financing on equivalent terms. The
Company will seek to raise up to C$10 million in this financing with GSR and
other investors.
Management's Discussion and Analysis and Consolidated Financial Statements
Ivernia's unaudited financial statements and management's discussion and
analysis for the three months and nine months ended September 30, 2011 were
filed today and will be available on the Ivernia website at www.ivernia.com or
SEDAR at www.sedar.com.
Conference Call
Management will host a conference call to discuss the Company's results at 10:00
a.m. (Eastern Time) on Tuesday November 15, 2011. The call will be webcast live
on the Ivernia website at www.ivernia.com.
Dial-in information for the call is as follows:
Phone: 1 866 713 8567 (Canada and USA) or +1 617 597 5326 (International)
(i) Participant passcode is 68421385
For those unable to participate in the conference call or webcast at the
scheduled time, a telephone replay will be available until November 30, 2011 by
dialing:
Phone: 1 888 286 8010 (Canada and USA) or +1 617 801 6888 (International)
(i) The playback passcode is: 13758041
A webcast replay will remain available on the Investors section of the Company's
website at www.ivernia.com.
About Ivernia
Ivernia is an international base metal mining company and the owner of the
Magellan Mine, located in Western Australia.
Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional
information on Ivernia is available on the Company's website at www.ivernia.com
and at SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking
information within the meaning of securities laws. All statements included
herein (other than statements of historical facts) which address activities,
events or developments that management anticipates will or may occur in the
future are forward-looking statements, including statements as to the following:
the duration of the suspension of the Company's transportation of lead carbonate
from the Magellan Mine, the duration of the period of care and maintenance
commenced in April 2011, future financings, future targets and estimates for
production, capital expenditures, operating costs, cash costs, mineral
resources, mineral reserves, life of mine, recovery rates, grades and prices,
business strategies and measures to implement such strategies, competitive
strengths, estimated goals and plans for Ivernia's future business operations,
lead market outlook and other such matters. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect",
and "intend" and statements that an event or result "may", "will", "can",
"should", "could" or "might" occur or be achieved and other similar expressions.
These statements are based upon certain reasonable factors, assumptions and
analyses made by management in light of its experience and perception of
historical trends, current conditions and expected future developments, as well
as other factors management believes are appropriate in the circumstances.
However, whether actual results and developments will conform with management's
expectations is subject to a number of risks and uncertainties, including
factors underlying management's assumptions such as, the duration of the
suspension of the Company's transportation of lead carbonate from the Magellan
Mine, the duration of the period of care and maintenance commenced in April
2011, risks relating to the operations being placed on care and maintenance, the
need for additional financing, matters relating the restart of mining and
milling operations, matters relating to ramping up mining and milling throughput
and operations, regulatory compliance and approvals, metal price volatility,
lead carbonate concentrate treatment charges, exchange rates, regulatory
proceedings and litigation, the fact that the Company has a single mineral
property, resources and reserves, health and safety, environmental factors,
mining risks, metallurgy, labour and employment regulations, government
regulations, insurance, dependence on key personnel, constraints on cash flow,
the nature of mineral exploration and development, matters related to the order
to cease transport of lead concentrate and matters relating generally to the
transportation of lead carbonate; presence of a majority shareholder; matters
related to the Esperance settlement and shipments through the Port of Fremantle;
implications stemming from the Esperance inquiry; and common share price
volatility and the dilution of the Company's Common Shares. Additional factors
and considerations are discussed in the Company's MD&A for the interim period
ended September 30, 2011 and in other documents filed from time to time by
Ivernia with Canadian securities regulatory authorities. While Ivernia considers
these assumptions to be reasonable based on information currently available to
it, they may prove to be incorrect. These factors may cause the actual results
of the Company to differ materially from those discussed in the forward-looking
statements, and there can be no assurance that the actual results or
developments anticipated by management will be realized or, even if
substantially realized, that they will have the expected results on the Company.
Undue importance should not be placed on forward-looking information nor should
reliance be placed upon this information as of any other date. Except as
required by law, while it may elect to, Ivernia is under no obligation and does
not undertake to update this information at any particular time.
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