North American Tungsten Reports Fiscal 2013 Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 14, 2014) -
North American Tungsten Corporation Ltd. (TSX-VENTURE:NTC) ("NTC"
or "the Company") announces a net loss of $13.3 million or $0.06
per share for its fiscal year ended September 30, 2013 ("fiscal
2013") compared to a net loss of $9.9 million or $0.04 per share
for the prior fiscal year ("fiscal 2012").
The Company's September 30, 2013 Annual Audited Consolidated
Financial Statements and Management's Discussion & Analysis
thereon may be accessed under the Company's profile on SEDAR
(www.sedar.com) and may also be accessed at the Company's website
www.natungsten.com.
Fiscal 2013:
- Revenue $79.8 million - down 26% from fiscal 2012
- Positive cash flow from operating activities $3.7 million -
decreased by $17.4 million from fiscal 2012
- Net loss of $13.3 million or $0.06 per share, increased by $3.4
million from fiscal 2012
While there has since been a recovery in market prices, results
for fiscal 2013 were impacted by the significant decline in the
market price of ammonium paratungstate ("APT") in the 2nd half of
calendar 2012 which led to a decline in realised sales prices
during fiscal 2013. Accordingly, the average realised sales price
decreased from USD$367 per Metric Tonne Unit ("mtu") in fiscal 2012
to an average realised sales price of USD$266/mtu in fiscal 2013,
with an overall impact of a decrease in revenue by approximately
USD$28.7 million. The most significant offsetting factors were the
$26.8 million decrease in depreciation and impairment costs
compared to fiscal 2012. The Company responded by reducing capital
spending by $25.3 million from fiscal 2012 and operating expenses
were closely managed.
The Cantung Mine operations were generally stable during fiscal
2013 with similar levels of feed grade and slightly improved
metallurgical recovery; while tons milled and MTUs produced
increased compared to fiscal 2012.
|
Fiscal 2013 |
Fiscal 2012 |
|
|
|
|
|
Tonnes Milled |
|
364,733 |
|
338,726 |
Feed
Grade % |
|
1.02 |
|
1.05 |
Recovery % |
|
77.5 |
|
76.9 |
MTUs
Produced |
|
287,032 |
|
272,586 |
MTUs
Sold |
|
283,900 |
|
282,064 |
Average Realised Sales Price in USD/mtu |
$ |
266 |
$ |
367 |
Kurt Heikkila, Chairman and CEO, commented, "During the year we
made a number of changes - some dramatic, others incremental - to
the organization's infrastructure to align with and execute on our
operating strategy. Working together, we recognized we could
increase mill capacity and had sufficient ore resources to support
throughput increases. Higher production levels leverage our fixed
operating costs and reduce our cost per ton mined, milled and
sold."
The mill enhancement project
which began in 2013 and is to be completed mid-year 2014 enables
throughput expansion of up to 20% while maintaining, and
potentially improving, recovery levels and enhancing flotation
circuit productivity. Based on current resources, we expect Cantung
to be in operation for years to come. Additionally, the Company has
successfully advanced the MacTung project in the regulatory
permitting process.
While the mill improvements involve some further capital
expenditures in 2014, the increase in production should
substantially reduce the cost per unit produced, along with the
supplement of low cost open-pit tons to the mill feed, will
significantly improve operating cash flows. As 2014 progresses, the
Company expects to realize the benefits of the increased
production.
During fiscal 2013 and subsequently, the Company replaced
near-term maturing debts and arranged additional financing,
including a USD$10.0 million convertible debenture that includes a
potential overallotment of USD$3.0 million that is available to the
Company.
The conversion of these debts into longer-term arrangements
improved the near-term financial position of the Company and
demonstrated the continuing support of its shareholders, creditors
and customers and their belief in the viability of the Company.
Further steps will be taken to improve liquidity, reduce the
working capital deficit, establish profitable operations and reduce
outstanding debt.
Kurt Heikkila continued, "We have reset our plans with a focus
on what's important for sustained profitability. We are building
the team, sharpening execution on goals and deepening customer
relationships. We are building to ensure our Company continues to
be one of the largest producers of the world's supply of tungsten
concentrates outside of China."
On behalf of the Board of Directors
Kurt Heikkila, Chairman & CEO
About North American Tungsten Corporation Ltd.
The Company is a publicly listed Tier 1 Junior Resource Company
engaged primarily in the operation, development, and acquisition of
tungsten and other related mineral properties in Canada. The
Company's 100% owned Cantung mine and Mactung development project
make it one of the few tungsten producers with a strategic asset in
the western world. Mactung is one of the world's largest known
undeveloped high grade tungsten-skarn deposits.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term as defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Cautionary Note: The Company relies upon litigation
protection for "forward-looking" statements.
Safe Harbour Statement under the United States Private
Securities Litigation Reform Act of 1995 and similar Canadian
legislation: Except for the statements of historical fact
contained herein, the information presented contains
"Forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and similar Canadian
legislation. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects,"
"budget," "scheduled," "estimates," "forecasts," "intends,"
"anticipates," "believes," or variation of such words and phrases
that refer to certain actions, events or results to be taken, and
other factors which may cause the actual results, performance or
achievements of North American Tungsten Corporation Ltd. To be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the actual results
of reclamation activities, the estimation or realization of mineral
reserves and resources, the timing and amount of estimated future
production, costs of production, capital expenditures, future
prices of commodities, possible variations in ore grade or recovery
rates, efficacy and efficiency of milling process, failure of
plant, equipment or processes to operate as anticipated, accidents,
labour disputes and other risks in the mining industry. Although
North American Tungsten Corporation Ltd. has attempted to identify
important factors that could cause actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained
herein and in North American Tungsten Corporation Ltd.'s other
filing incorporated by reference.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred Resources:
This press release may use the terms "measured," "indicated"
and "inferred" Resources. United States investors are advised that
while such terms are recognized and required by Canadian
regulators, the United States Securities and Exchange Commission
does not recognize them. "Inferred Mineral Resources" have a great
amount of uncertainty as to their existence and as to their
economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to
assume that all or any part of Measured or Indicated Mineral
Resources will ever be converted into Mineral Reserves. United
States investors are also cautioned not to assume that all or any
part of an Inferred Mineral Resource exists, or is economically or
legally mineable.
North American Tungsten Corporation Ltd.Investor
Contact+1.604.684.5300+1.604.684.2992info@natungsten.comwww.natungsten.com
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