(All amounts expressed in US dollars, unless otherwise stated)
VANCOUVER, May 19, 2020 /PRNewswire/ - Northern Vertex Mining Corp. (TSX.V: NEE) (OTC-Nasdaq Intl.: NHVCF) (the "Company" or "Northern Vertex") today reported revenue of $13.1 million, record earnings from mine operations before depreciation and depletion of $5.2 million, and adjusted EBITDA of $4.8 million.
Kenneth Berry, President and CEO, states: "Our results in the quarter demonstrate the strength of our operations at the Moss Mine in Northwest Arizona. Net income of $7.5 million was driven by our solid earnings from mine operations, plus a non-cash gain on the accounting for our silver stream and existing warrants. In addition, the Company has attained many notable achievements including successful preparations to avoid the impacts of COVID-19, with no known or suspected cases of infection at the Moss Mine nor at its office in Vancouver; a resource update for Moss Mine; the Bureau of Land Management approval to expand the mining operations; and the expansion of the leach pad which was commissioned in March. The Company is well positioned to benefit from the current trend in rising gold prices."
Financial and Operating Highlights for the Quarter Ended March 31, 2020
1 Refer to non-IFRS financial measures and Forward-Looking Statements at the end of this news release.
31, 2019 3
31, 2019 1,2,3
Tonnes stacked per day (average)
Contained gold ounces stacked
Contained silver ounces stacked
Gold ounces produced 4
Silver ounces produced 4
Gold ounces sold 5
Silver ounces sold 5,6
The Moss Mine commenced commercial production effective September 1, 2018. In relation to this, only financial operating results from this date are recognized in the Company's Condensed Interim Consolidated Statements of Loss and Comprehensive Loss for the three and nine months ended March 31, 2019. Financial operating results from the Moss Mine prior to September 1, 2018 were capitalized to property, plant and equipment.
The operating statistics for the nine months ended March 31, 2019 include pre-commercial production results.
Crushing statistics for the three and nine months ended March 31, 2019 have been adjusted from previously released statistics due to a change in the Company's estimate of tonnes and contained ounces stacked during the nine months.
The nine months ended March 31, 2019 includes 3,672 gold ounces and 12,009 silver ounces that were produced pre-commercial production being the two months ended August 31, 2018.
The nine months ended March 31, 2019 includes 4,924 gold ounces and 16,376 silver ounces that were produced during pre-commercial production being the seven months ended March 31, 2019.
Includes silver ounces purchased and on-sold to final customer to deliver deferred ounces relating to silver streaming agreement.
The Company's interim consolidated financial results for the third fiscal quarter 2020 ended March 31, 2020 have been filed on SEDAR. The information in this news release should be read in conjunction with the Company's Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis available on the Company's website at www.northernvertex.com or under the Company's profile on SEDAR at www.sedar.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
Gold ounces sold1
Cash costs reconciliation
Cost of sales
Less: Depreciation and depletion
Add: Refining and transportation
Less: Silver revenue
Cash costs per ounce of gold sold
Reconciliation to All-In Sustaining Costs
Gold ounces sold
Sustaining capital expenditures1
Accretion on reclamation obligation
Moss Mine AISC per ounce sold
Reconciliation to Adjusted EBITDA
Net profit (loss)
Depreciation and depletion
Finance costs (income)
Foreign exchange (gain) loss
About Northern Vertex Mining Corp.
Northern Vertex Mining Corp. is focused on low cost gold and silver production at its 100% owned Moss Mine in NW Arizona. The Company has experience across all areas of operations, mine development, exploration, acquisitions and financing of mining projects. With operations at the flagship Moss Mine achieving commercial production the Company intends to consolidate additional producing or near-term production gold assets within the Western US. Through mergers and acquisitions Northern Vertex's corporate goal is to become a mid-tier gold producer with over 200,000 ounces of gold production annually.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
President & CEO
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.