Quadra Snapshot
| Stock Symbol |
QUA.TSX |
| Shares Outstanding |
99,156,310 |
| Shares Fully Diluted |
113,405,497 |
| Major Shareholders |
Institutional 83%
Retail 12%
Insiders 5% |
| 52 Week hi/low |
CDN $27.00 / $1.97 |
| Operating Assets |
Robinson Mine, Ely, Nevada
Carlota Mine, Globe-Miami, Arizona |
| Development Projects |
Sierra Gorda Project, Chile
Malmbjerg Project, Greenland |
| Auditors: |
Pricewaterhouse Coppers LLP |
| Transfer Agent: |
Computershare |
| CUSIP Number: |
747319 |
| Financial Year End: |
December 31st |
| Financial Summary Q3, 2009: |
|
| Q3 2009 Cash on Hand |
$ 85,485,000 |
| Q3 2009 Earnings |
$ 14,701,000 |
| Robinson Capital Assets |
$126,192,000 |
| Other Assets |
$4,968,000 |
| Sierra Gorda expenditures |
$135,510,000 |
| Carlota Project expenditures |
$267,569,000 |
| Franke Project expenditures |
$248,569,000 |
Malmbjerg Project expenditures |
$ 5,554,000 |
| Environmental Bond |
$43,494,000 |
| Funds in trust for reclamation |
$16,246,000 |
| Concentrate Inventory |
$39,425,000 |
| Carlota Leach Pad Inventory |
$78,075,000 |
Corporate Highlights:
2004:
- Completed one of the largest mining IPO's in 2004: CDN$145 million
- Purchased BHP Billiton's Robinson Copper Mine in Nevada for $14.2 million
- Restarted Robinson Mine approximately two months ahead of schedule and under budget
- Optioned to purchase the Sierra Gorda project in Chile
- Completed 10,000 metre drill program - discovered two new significant oxide copper zones
2005:
- Produced 126 million pounds of Cu and 81,000 ounces of Au from Robinson
- Completed NI 43-101 compliant resource estimate on Sierra Gorda
- Completed and commissioned a molybdenum flotation circuit at Robinson
- Purchased the development ready Carlota Copper Project in Arizona
2006:
- Robinson produced 121 million pounds of Cu and 75,074 ounces of Au
- Discovered a major new classic copper porphyry system at Sierra Gorda
- Completed cost studies and executed plans for Carlota
- Bid $350 million for Equatorial Mining and their interest in the El Tesoro operation. Pre-empted by Antofogasta Plc.
2007:
- Robinson produced 132 million pounds of Cu and 108,119 ounces of Au
- Closed a $200 million financing for the development of the Carlota Project, commenced construction
- Acquired 82% of International Molybdenum Plc and their primary molybdenum Malmbjerg project
- Advanced Sierra Gorda with 48,000 metre drill program and procurement of water rights
- Closed a $150 million equity raise
- Reached $1 billion market capitalization, added to the S&P /TSX Composite Index
2008:
- Robinson produced 159.7 million pounds of Cu and 137,628 ounces of Au
- Closed $190 million equity financing to repay corporate debt raised for the construction of the Carlota Project
- Advanced Sierra Gorda, announcing a 19 billion lb Cu/Eq resource and commenced engineering studies
- Completed the construction of Carlota on schedule and on budget. First cathode copper shipped before year end
Quadra provides a strong investment vehicle to movements within the base metals sector
- Established ability to profitably operate large scale mining assets
- Demonstrated ability to successfully develop and finance major projects
- Experience in negotiating value creating acquisitions and joint ventures
- Exposure to the long term copper fundamentals driven by growth in the developing economies
- Stable cash flow with upside potential at the Robinson Mine, Nevada
- $US denominated cost exposure
- Value creation and growth with the company's pipeline of development projects:
- Carlota Project - Arizona
- Malmbjerg Project - Greenland
- A strategic growth plan to consolidate the single asset based metal players and achieve critical mass
- Experience operating in the United States, Latin America and Australia
- Production and development assets in politically sound regions
Management:
| Paul M. Blythe |
President, CEO and Director |
| Derek White, CA |
Executive Vice President, Corporate Development |
| Jack Miller, P. Eng. |
Chief Operating Officer |
| Stuart McDonald, CA, CPA (Illinois) |
Chief Financial Officer |
| John Bailey, FCA |
Vice President, Commercial |
| Guy Le Bel |
Vice President, Business Development |
Mark Selby |
Vice President, Business Planning & Market Research |
David Newhook |
Vice President, Project Evaluation |
| Andrew Nichols, CA |
Treasurer |
| Edward("Ed") Kirwan |
Vice President, Environmental |
| Patrick L. Fahey, M.Sc. |
Chief Geologist |
| Howard Bradley |
Vice President, Technical Services |
| Russell Alley |
Presidente,Minera Quadra Chile Ltda |
Joe Landon |
General Manager, Robinson |
| Dave Cook |
General Manager, Carlota |
| Bob Walish |
General Manager, Franke |
| Mark Blakely |
Senior Vice President, Projects |
| George Reynard |
Manager, Marketing |
| Sophie Taylor |
Manager, Investor Relations |
Board of Directors:
| Mr. William H. Myckatyn |
Chairman of the Board and Director |
| Mr. Paul Blythe |
Director |
| John A. Brough |
Director |
| Geoffrey S. Belsher |
Director, Secretary |
| George W. Poling |
Director |
| Ken Williamson |
Lead Director |
| Neil MacKenzie |
Director |
| Greg Van Staveren |
Director |
The Robinson Mine
The Robinson Mine is Quadra's principal asset and is an open pit copper and gold mine located in eastern Nevada approximately 11 km west of the town of Ely. Beginning in 1994, Magma Copper, which was later taken over by BHP Copper Inc., constructed and started up a modern mining and sulfide concentrating facility at a reported cost of US$480 million. Quadra acquired the Robinson Mine on 8th April 2004 for approximately US$14,875,000 in cash.
Robinson has operated continuously since 2005 producing 121 to 126 million pounds per year of copper. In 2006, mining transitioned from the Tripp to the Veteran pit and the mine produced 121.4 million pounds of copper, 75,074 ounces of gold and 260,000 pounds of molybdenum. In 2007, the mine produced 131.9 million pounds of copper and approximately 108,000 ounces of gold.
The reserves at Robinson as of January 1st 2009 were 122 Mt containing 0.54% copper and 0.23 g/t gold.
Carlota Mine
The Carlota Mine is a heap leach SX/EW copper mine located in the Globe-Miami Mining District of Arizona, one of the most prolific copper mining regions in the world. The project is located among several historic mines and is contiguous to the BHP Pinto Valley Mine.
The Carlota Mine has probable mineral reserves of approximately 70 million tonnes grading 0.46% total copper and is expected to produce cathode copper by solvent extraction/electrowinning (SX/EW) over a nine year mine life plus two years of residual leach.
Construction of Carlota was completed on schedule and on budget in the third quarter of 2008. The first production of copper cathode was harvested in the fourth quarter of 2008 and commercial production began in the first quarter of 2009.
Franke Project
The Franke Project is an SX/EW heap leach project in northern Chile. The processing plant is designed with a nominal design capacity of 70 million pounds of cathode copper production over its estimated 8.6 year mine life.
The Franke mine processing and infrastructure facilites are substantially complete and under pre-start up testing.
Sierra Gorda Project
Sierra Gorda is a late-stage copper exploration project located in the Atacama Desert, Region II of Chile with recent results indicating the potential for a large porphyry deposit.
The project comprises eight contiguous properties that cover an area of approximately 23 square kms in a region of Northern Chile that has hosted a number of other significant copper mines and resources including BHP Billiton's Spence project 10 km to the northeast, Antofagasta Holdings PLC's El Tesoro mine approximately 15 km to the southeast and the Lomas Bayas and Mantos Blancos mines to the southwest.
Based on a NI 43-101 Technical Report dated July 23rd a scoping study supports an open pit and concentrator operation processing 111,000 tonnes of mill feed per day and producing between 250 and 400 million pounds of copper per annum over a 25 year mine life at an average cash cost of $0.79 per pound. The project would also have significant molybdenum production, averaging 33 million pounds per year over the first eight years, and declining thereafter. This high level of molybdenum production results in an average cash cost of $0.34 per pound produced during these first eight years. Using a long term copper price of US $2.00 per pound, molybdenum price of US $12 per pound and gold price of US $800 per ounce, the project produces an after-tax net present value (10% discount rate) of US $622 million and an internal rate of return of 16%.
Malmbjerg Project
The Malmbjerg molybdenum project is located on the east coast of Greenland, approximately 600 kms north of Iceland. The project was acquired in May 2007 as part of the International Molybdenum plc purchase. An NI 43-101 compliant Technical Report for the project estimates a Measured and Indicated Resource of 560 million pounds of contained molybdenum.
A plan of operation as identified by International Molybdenum estimates 15,000 - 20,0000 tonnes of molybdenite concentrate to be produced per annum. Development plans identify an open pit operation with a 15 - 20 year mine life.
Analyst Coverage:
| Raymond James |
Tom Meyer |
1-416-777-4912 |
| Macquarie Capital Markets Canada |
George Albino |
1-416-848-3594 |
| CIBC Capital Markets |
Ian Parkinson |
1-416-956-6169 |
| TD Newcrest |
Craig Miller |
1-416-982-2753 |
| Thomas Weisel |
Simon Tonkin |
1-416-815-3087 |
| GMP Securities |
David Charles |
1-514-288-7774 |
| RBC Capital Markets |
H. Fraser Phillips |
1-416-842-7859 |
| UBS Securities Canada Inc. |
Onno Rutten |
1-416-814-3663 |
| Cormark Securities Inc. |
Cliff Hale Sanders |
1-416-943-6729 |
| Rodman & Renshaw |
Alka Singh |
1-212-430-1760 |
| Scotia Capital Inc. |
Alex Terentiew |
1-416-863-7484 |
| Paradigm Capital Inc. |
Jacob Willoughby |
1-416-361-9557 |
| Canaccord Adams |
Orest Wowkodaw |
1-416-869-3092 |
| BMO Capital Markets |
David Cotterell |
1-416-359-7723 |
|
| Desjardins Securities |
John Hughes |
1-416-867-3778 |
|
| National Bank |
Ian Howat |
1-416-869-7936 |
|
| Genuity Capital Markets |
Nawojka Wachowiak |
1-416-687-5314 |
|
TSO & Associates |
Terence S. Ortslan |
1-514-844-8344 |
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