VANCOUVER, BC, April 14, 2021 /CNW/ - Northern Vertex Mining
Corp. (TSX: NEE) ("Northern Vertex" or the
"Company") a U.S.-focused gold producer with
district-scale exploration potential in the Walker Lane Trend, is
pleased to announce audited financial results for its new fiscal
year end to December 31st.
Results for the fiscal six months ended December 31, 2020 ("Stub Year") included
revenue of $52.7 million, Adjusted
EBITDA of $23.3m, and a positive
working capital position of $10.9m.
All figures are expressed in USD unless otherwise noted, non-IFRS
metrics are described later in this press release.
Highlights for the Quarter ended December 31st
- Revenue of $25.9 million
- Adjusted EBITDA of $10.5
million
- Net income of $11.7 million
- Earnings from mine operations of $11.8
million before depreciation and depletion
- Gold equivalent production of 12,401 ounces1
- Gold production of 11,124 ounces
- Cash cost of $894/oz, and Moss
Mine AISC of $1,088/oz – including
$190/oz in capital expenditures
- Cash on hand of $8.3 million
1Gold equivalent is calculated
at a 75:1 ratio
|
Highlights for the Stub Year ended December 31st (6 months)
- Revenue Year of $52.7
million
- Adjusted EBITDA of $23.3
million
- Gold production of 24,207 ounces
- Transformation of the Northern Vertex capital structure
-
- Repaid $8.5 million of debt
- Eliminated 25.1 million warrants
Michael G. Allen, President
of Northern Vertex stated, "The Northern Vertex team
continued to exceed expectations with numerous production records
during the stub year ended December 31,
2020, including the completion of key capital projects such
as the powerline connection, moving to a larger crush size,
installation of a heap leach solution management system, and West
pit pioneering. Through an ambitious exploration program that
started in 2020, we see significant opportunity to strengthen our
mine plan and expand resources. Northern Vertex will be providing
updates on near-mine and infill drilling results in the coming
months."
CONSOLIDATED THREE AND SIX MONTHS ENDED December 31, 2020
Financial Results
US$'000 (except
per share amounts)
|
|
|
Three Months
Ended
December 31,
2020
|
Six Months
Ended
December 31,
2020
|
Revenue
|
|
|
25,910
|
52,739
|
Costs of sales
(including depreciation and amortization)
|
|
(16,218)
|
(17,214)
|
Operating income
(loss)
|
|
|
7,376
|
14,803
|
Net income
(loss)
|
|
|
11,675
|
(7,108) (1)
|
Net income (loss) per
share (basic)
|
|
|
0.05
|
(0.03)
|
(1)
|
Includes a
non-cash accounting derivative liability revaluation loss of
$16,265 - tied to the convertible debentures ($186) due to an
increase in the NEE share price, warrants ($2,282) due to an
increase in the NEE share price, and silver stream embedded
derivative ($13,791) due to an increase in silver
price.
|
|
|
|
Three Months
Ended
December 31,
2020
|
Six Months
Ended
December 31,
2020
|
Cash generated from
operating activities
|
|
2,866
|
13,608
|
Average realized gold
price ($/oz)
|
|
|
1,898
|
1,892
|
Total Cash Costs
($/oz)
|
|
|
894
|
925
|
Moss Mine AISC
($/oz) (2)
|
|
|
1,088
|
1,207
|
(2)
|
AISC for the three
months ended December 31, 2020 included $190/oz in capital
expenditures tied to the construction of the powerline, exploration
and a heap leach pad expansion.
|
Operating
results
|
|
|
Three Months
Ended
December 31,
2020
|
Six Months
Ended
December 31,
2020
|
Ore Tonnes Mined
(t)
|
|
571,703
|
1,278,332
|
Ore Stacked
(t)
|
|
626,518
|
1,310,224
|
Grade (g/t
Au)
|
|
|
0.55
|
0.62
|
Gold Ounces
Produced
|
|
|
11,124
|
24,207
|
Gold Ounces
Sold
|
|
|
11,760
|
24,584
|
Quarter ended December 31, 2020
- Operations
During the three months ended December 31, 2020 a total of 571,703 ore tonnes
were mined at a strip ratio of 2.68. The proportion of total
ore being sourced from the East pit continues to increase as
operations transition out of the current phase of the Center pit,
while pioneering in the West pit was completed. The elevated
strip ratio was partially a result of work to remove a slough in
the south wall of the East pit.
During the three months ended December
31, 2020 mining operations included 626,518 tonnes of ore
crushed at an average gold grade of 0.55g/t, resulting in
production of 11,124 Au ounces and 95,804 Ag ounces.
Numerous important capital projects were completed during the
Stub Year:
- Commissioned a 6.9 mile power line, resulting in the mine being
switched over to grid power and costs dropping from 31 cents per kilowatt hour to 8 cents per kilowatt hour,
- Commissioned an Intermediate Leach System to accelerate gold
recoveries from the heap leach pad,
- Completed the transition to a larger ore crush size,
- Completed 57,345 feet of infill and exploration drilling from
May to December 31, 2020.
Qualified Person
The foregoing technical
information contained in this news release has also been reviewed
and verified by Mr. Joseph
Bardswich, P.Eng., a Qualified Person ("QP") for the purpose
of National Instrument 43-101 (Disclosure Standards for Mineral
Projects).
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
December
31,
2020
|
Six Months Ended
December
31,
2020
|
Gold ounces
sold
|
|
|
11,760
|
24,584
|
|
|
|
|
|
Cash costs
reconciliation
|
|
|
|
|
Cost of
sales
|
|
|
$
17,214
|
$
35,821
|
Less: Depreciation and
depletion
|
|
|
(3,109)
|
(6,844)
|
Add: Refining and
transportation
|
|
|
37
|
240
|
Less: Silver
revenue
|
|
|
(3,627)
|
(6,466)
|
Cash costs
|
|
|
10,515
|
22,751
|
Cash costs per
ounce of gold sold
|
|
|
$
894
|
$
925
|
Reconciliation to All-In Sustaining Costs
|
|
|
Three Months
Ended
December 31,
2020
|
Six Months
Ended
December 31,
2020
|
Gold ounces
sold
|
|
|
11,760
|
24,584
|
|
|
|
|
|
AISC
reconciliation
|
|
|
|
|
Cash
costs
|
|
|
$
10,515
|
$
22,751
|
Sustaining
capital expenditures
|
|
|
2,231
|
6,767
|
Accretion
|
|
|
46
|
162
|
|
|
|
12,792
|
29,680
|
Moss Mine AISC per
ounce sold
|
|
|
$
1,088
|
$
1,207
|
|
|
|
|
|
|
Reconciliation to Adjusted EBITDA
|
|
|
Three Months
Ended
December 31,
2020
|
Six Months
Ended
December 31,
2020
|
Net profit
(loss)
|
|
|
11,675
|
(7,108)
|
Depreciation and
depletion
|
|
|
3,110
|
6,844
|
Finance costs
(income)
|
|
|
5,334
|
6,725
|
Loss (gain) on
derivative liabilities
|
|
|
(10,014)
|
16,215
|
Share-based
compensation
|
|
|
46
|
159
|
Foreign exchange
(gain) loss
|
|
|
381
|
509
|
Adjusted
EBITDA
|
|
|
10,532
|
23,344
|
About Northern Vertex Mining Corp.
Northern
Vertex offers investors a rare combination of cash flow,
production, top-tier management and exceptional exploration
potential within two projects on the Walker Lane Gold Trend of
western Nevada and Arizona. Management is executing a clear
strategy that expands production and resources at the Moss Mine in
Arizona while aggressively
exploring the Hercules Project in Nevada.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Michael G.
Allen"
President
TSXV: NEE | US: NHVCF | NEE.WT | Frankfurt: 54N | ISIN: CA6660061012 | WKN:
A1JUA0
Neither 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 or
accuracy of this release.
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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SOURCE Northern Vertex Mining Corp.