You're so commercial.
On October 26, 2009, after nearly a year delay, Iberian Minerals officially declared commercial
production at its wholly-owned Aguas Tenidas copper-zinc underground mine in Spain. Commercial production at the operation
had been delayed due to permitting issues, ramp-up, and required modifications to the polymetallic circuit. The mine is
currently producing saleable copper and zinc, and a bulk copper-lead concentrate. Iberian expects to complete the previously
announced modifications to the polymetallic flotation circuit by the end of this year, which would enable copper-lead separation
of the bulk concentrate to begin in Q1/10. While the company awaits an amended permit to enable the use of cyanide and other
reagents in the redesigned polymetallic circuit, the production of a saleable bulk copper-lead concentrate will continue in the
interim. According to Canaccord Adams Senior Mining Analyst Orest Wowkodaw, given the well-documented challenges
experienced by the company in starting up Aguas Tenidas, the declaration of commercial production is a significant positive and
removes a material overhang on the stock. Wowkodaw is bullish on the stock based on the company’s very attractive relative
valuation and low-risk/low-cost asset base. He believes a successful ramp up at Aguas Tenidas and the roll-off of low-priced
copper hedges are critical milestones required to achieve a re-rating of the shares over the next 12 months. Wowkodaw also
notes that Iberian is by far the cheapest copper producer in his coverage universe.
Iberian Minerals* (IZN : TSX-V : $0.58), Net Change: 0.01, % Change: 1.75%, Volume: 454,050
