Malaga Inc. reported operating results for the second quarter ended June 30, 2012. For the quarter, the company reported 13% decrease in sales volume of tungsten to 13,600 MTU compared to 15,607 MTU last year. The company reported 11% decrease in the selling price and a $14 increase in cash cost production per MTU to $203 compared to $189, which results from lower head grade of mineral extracted to 0.57% compared to 0.64% last year. The rate of production remained constant averaging above 350 tpd. Copper sales were very low in first quarter due to the transportation problems caused by the unusually strong rainfall. In the second quarter, the company has been able to recover some of the first quarter loss and the by-product sales amounted to $0.6 million, substantially greater than in the first quarter of 2012. The company will continue to sell the copper by-product for the remainder of the year.

With production levels expected to increase in the second half of the year compared to the first, the company estimates that the cash cost of production will decrease.