Highlights for the Quarter ended
- Record revenue of
$26.8 million - Record adjusted EBITDA of
$13.5 million - Record earnings from mine operations of
$12.0 million before depreciation and depletion - Record gold equivalent production of 14,673 ounces
- Record gold production of 13,083 ounces
- Cash cost of
$954 /oz, including approximately$47 /oz in one-time costs tied to the change of mining contractor - Moss Mine AISC of
$1,317 /oz which included$292 /oz in capital expenditures tied to the construction of the powerline, exploration and a heap leach pad expansion. - Net loss of
$18.5 million driven by non-cash derivative liabilities - Cash on hand of
$12.1 million
CONSOLIDATED THREE MONTHS ENDED | ||||
Three Months Ended | Three Months Ended | |||
Revenue | 26,829 | 14,550 | ||
Costs of sales (including depreciation and amortization) | (18,608) | (14,064) | ||
Operating profit (loss) | 7,427 | (244) | ||
Net loss(1) | (18,783) | (5,645) | ||
Net loss per share (basic) | (0.07) | (0.03) |
(1) | Includes a non-cash accounting derivative liability revaluation loss of 26.28 million - tied to the convertible debentures (9.25 million) due to an increase in the NEE share price, warrants (7.53 million) due to an increase in the NEE share price, and silver stream embedded derivative (9.50 million) due to an increase in silver price. |
US$'000 (except per share and per ounce amounts) | ||||
Three Months Ended | Three Months Ended | |||
Cash generated from operating activities | 10,746 | 3,347 | ||
Capex: Mine development and Plant & Equipment | 4,461 | 365 | ||
Average realized gold price ($/oz) | 1,887 | 1,467 | ||
Total Cash Costs ($/oz) | 954 | 1,052 | ||
Moss Mine AISC ($/oz) (2) | 1,317 | 1,086 |
(2) | AISC for the three months ended |
Operating results | Three Months Ended | Three Months Ended | ||
Tonnes Mined (t) | 706,629 | 482,418 | ||
Ore Stacked (t) | 683,706 | 452,858 | ||
Grade (g/t Au) | 0.69 | 0.67 | ||
Gold Ounces Produced | 13,083 | 8,460 | ||
Gold Ounces Sold | 12,284 | 9,122 |
Quarter ended
During the three months ended
During the three months ended
Finally, the Moss team advanced numerous important capital projects during the quarter:
- Construction of a 6.9 mile power line, resulting in the mine being switched over to grid power from generator power with power costs moving from
31 cents per kilowatt hour to8 cents per kilowatt hour, - Construction and commissioned an Intermediate Leach System, which accelerates gold recoveries from the heap leach pad,
- 80% complete test work on increasing grind size, which could increase throughput rates and/or reduce costs,
- Pioneering the new west pit, which was more than 80% complete at
September 30 , - Completed 35,000 feet of infill and exploration drilling, which is expected to lead to a resource update and revised mine plan.
Qualified Person
The foregoing technical information contained in this news release has also been reviewed and verified by Mr.
Full Condensed Interim Consolidated Financial Statements and the Management Discussion & Analysis can be found at www.sedar.com and the Company's website at northernvertex.com.
Non-IFRS Performance Measures
The following tables represent the calculation of certain Non-IFRS Financial Measures as referenced in this news release.
Reconciliation to Cash Costs | ||||||
Three Months Ended | Three Months Ended | |||||
Cash costs reconciliation | ||||||
Cost of sales | $ | 18,608 | $ | 14,064 | ||
Less: Depreciation and depletion | (3,734) | (3,300) | ||||
Add: Refining and transportation | 204 | 81 | ||||
Less: Silver revenue | (2,839) | (1,261) | ||||
Cash costs | 12,239 | 9,584 | ||||
Cash costs per ounce of gold sold | $ | 954 | $ | 1,052 |
Reconciliation to All-In Sustaining Costs | |||||||
Three Months Ended | Three Months Ended | ||||||
Gold ounces sold | 12,824 | 9,112 | |||||
AISC reconciliation | |||||||
Cash costs | $ | 12,239 | $ | 9,584 | |||
Sustaining capital expenditures | 4,536 | 241 | |||||
Accretion | 116 | 73 | |||||
16,891 | 9,899 | ||||||
Moss Mine AISC per ounce sold | $ | 1,317 | $ | 1,086 |
Reconciliation to Adjusted EBITDA | ||||
Three Months Ended | Three Months Ended | |||
Net profit (loss) | (18,451) | (5,645) | ||
Depreciation and depletion | 3,734 | 3,300 | ||
Finance costs (income) | 27,331 | 5,471 | ||
Share-based compensation | 722 | 261 | ||
Foreign exchange (gain) loss | 135 | (70) | ||
Adjusted EBITDA | 13,471 | 3,317 |
About
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Kenneth Berry"
President & CEO
Neither
Cautionary Note Regarding Forward-Looking Statements:
This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as scheduled, may, intend, plan, expect, anticipate, believe or other similar words. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations. US investors should be aware that mining terminology used for Canadian mineral project reporting purposes differs significantly from US terminology.
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