Malaga Inc. reported earnings and production results for the third quarter and year to date ended September 30, 2012. For the third quarter of 2012, the company's sales amounted to $3.1 million against $4.6 million in third quarter 2011. The 32% decrease is mainly caused by a 31% decrease in tungsten revenues as a result of a 19% decrease in sales volume to 10,252 MTU in third quarter 2012 compared to 12,697 MTU in third quarter 2011 and a 19% decrease in the average APT selling price to $368 per MTU in third quarter 2012 compared to $454 per MTU in third quarter 2011. The company incurred a net loss of $0.9 million compared to a net income of $2.0 million in third quarter 2011. The main driver explaining the net loss was the production shortfall in third quarter 2012 which resulted in lower sales volume and a 32% increase in the average cash cost of production, as well as the fact that there were no copper sales in the quarter. Adjusted net loss was $0.88 million against adjusted net income of $0.63 million for the same period a year ago. EBITDA was negative $0.12 million against EBITDA of $1.34 million for the same period a year ago.

For the year-to-date, the company's total sales amounted to $11.7 million against $15.2 million for the same period in 2011. The 23% decrease in total sales includes a 20% decrease in tungsten revenues as a result of a 26% decrease in sales volume to 34,183 MTU compared to 46,394 MTU in 2011 and a 5% decrease in the average APT selling price to $396 in 2012 compared to $418 in 2011. Net loss was $0.6 million against net income of $4.42 million for the same period a year ago. Adjusted net loss was $0.62 million against adjusted net income of $1.91 million for the same period a year ago. EBITDA was $1.26 million against EBITDA of $4.18 million for the same period a year ago.

For the quarter, the company reported production of 9,826 MTU against 13,302 MTU for the same period a year ago. Cash cost of production was $234 per MTU against $178 per MTU for the same period a year ago.

For the nine months, the company reported production of 34,382 MTU compared to 43,868 MTU for the same period in 2011. Production was down for the nine-month period ended September 30, 2012 compared to same period last year, which resulted in a $47 increase in the average cash cost of production to $210 per MTU in 2012 compared to $163 per MTU in 2011.

The company announced the resignation of Dino Fuoco from the Board of Directors as he has accepted a new full time position. To replace Mr. Fuoco, Benoit Alain was appointed to the Board of Directors and will also be a member of the Audit Committee. Mr. Alain has 25 years of international experience in management, business development and finance in the resources and manufacturing industries. Most recently Mr. Alain spent nine years with the ArcelorMittal group.