TSX Venture Exchange
Symbol: NWM
TORONTO, May 31, 2013 /CNW/ - NWM Mining Corporation (the
"Company" TSX-V: NWM) reports a net loss of $145,529 for the quarter ended March 31, 2013. The profit from operations before
unrealized non cash foreign exchange losses and income taxes was
$534,471. All amounts are presented
in Canadian dollars unless otherwise noted.
Q1. 2013 highlights:
- Gold revenues during the quarter amounted to $8,066,626 based on sales of 4,931 ounces at an
average realized gold price of US $1,634.
- The Company produced 5,068 ounces of gold in the first quarter
at a cash cost of $1,111 per ounce of
gold produced.
- The Company mined 3,496 tonnes of ore daily during the quarter
at a strip ratio of 1.06:1 and placed a total of 4,654 ounces of
gold on pads. 314,627 tonnes of material at an average grade of
0.46 g/t was placed on the pads and this material was comprised of
both newly mined and previously stockpiled gold bearing rock. Total
recoverable gold on the pads is now estimated to be in the range of
13,466 ounces.
Summarized interim financial and operating
results for the quarter were as follows:
|
Three months ended |
|
March 31,
2013 |
March 31, 2012 |
Gold produced (oz) |
5,068 |
4,777 |
Gold sold (oz) |
4,931 |
4,000 |
Average realized gold price (US$/oz) |
1,634 |
1,681 |
Average gold price (London PM Fix) (US$/oz) |
1,632 |
1,691 |
Cash cost per gold ounce ($/oz)
(1) |
1,111 |
689 |
Metal revenues ($) |
8,066,626 |
6,766,508 |
Profit (loss) from operations ($) |
164,471 |
2,100,365 |
Earnings ($) |
(145,529) |
2,145,612 |
Earnings per share, basic ($) |
(0.000) |
0.004 |
Earnings per share, diluted ($) |
(0.000) |
0.004 |
Cash from operations ($) |
1,078,667 |
2,421,660 |
Total assets ($) |
56,562,884 |
50,114,876 |
(1) |
|
Cash cost per gold ounce is a non-GAAP performance measure that
management uses to better assess the Company's performance for the
current period and its expected performance in the future. The
Company believes that, in addition to conventional measures
prepared in accordance with GAAP, certain investors use this
measure to evaluate the Company's performance and cash generating
capabilities. |
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Cash cost per gold ounce is calculated by dividing all of the
costs absorbed into inventory, excluding depletion, depreciation
and amortization, by applicable ounces sold. This calculation may
differ from the methods used by other issuers. Therefore, the
Company's measure of cash cost per gold ounce, as presented in this
press release, may not be comparable to similar measures presented
by other issuers. Investors are cautioned that cash cost per
gold ounce, as a non-GAAP measure, is not an alternative to
measures under GAAP, and should not, on its own, be construed as an
indicator of profitability. |
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Summarized production statistics for the quarter were as
follows:
|
Three months ended March
31 |
|
2013 |
2012 |
Ore mined (tonnes) |
314,627 |
740,621 |
Average ore mined grade (g/t Au) |
0.46 |
0.41 |
Waste mined (t) |
332,054 |
889,158 |
Total mined (t) |
646,681 |
1,629,779 |
Strip ratio |
1.06 |
1.20 |
Total days in period |
90 |
91 |
Average ore mined per day (t/d) |
3,496 |
8,139 |
Gold produced (oz) |
5,068 |
4,777 |
During the quarter, the Company completed a
review of all mining permits and recognized that activities in
areas 4 and 5 and at the Gold Ridge zone of Lluvia de Oro mine may
be in whole, or in part, external to current mining permits. The
Company notified PROFEPA of the situation and is currently engaged
with PROFEPA officials to ensure full compliance. The Company
expects a successful resolution of the situation. A range of
outcomes from a small fine to temporary mine closure may result
from the review currently being undertaken. The Company has a mine
site meeting with PROFEPA officials in the next two weeks to review
mining operations, and is seeking to resolve this matter with
revised mining plans and permit submissions.
The Company also reports that all payments
pursuant to the terms of the Company's loans are current and
monthly interest payments are being made. Readers are cautioned
that this debt is due on June 14,
2013 and that as of May 30,
2013 no formal extension or replacement of the debt has been
agreed to by the current lender or by any other third party
lenders.
NWM is an emerging gold producer with two
currently defined ore bodies containing NI 43-101 compliant gold
reserves and resources. The Company is focused on demonstrating
profitable operations at the Lluvia de Oro and La Jojoba gold
mines, and on growing reserves and resources through
exploration.
For more information please see NWM's website at
www.nwmcorp.ca
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy of this release
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release includes "forward-looking information", as
such term is defined in applicable securities laws. Forward-looking
information includes, without limitation, the success of
exploration activities, price outlooks, production expectations and
other similar statements concerning anticipated future events,
conditions or results that are not historical facts. These
statements reflect management's current estimates, beliefs,
intentions and expectations; they are not guarantees of future
performance. The Company cautions that all forward looking
information is inherently uncertain and that actual performance may
be affected by a number of material factors, many of which are
beyond the Company's control. Accordingly, actual future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information. All statements are made as of the date
of this news release and the Company is under no obligation to
update or alter any forward-looking information.
SOURCE NWM Mining Corporation