Press release from Marketwire
NMC Resource (TSX VENTURE:NRC) Announces Financial Results for Six Months Ended June 30, 2012
Wednesday, August 22, 2012
NMC Resource (TSX VENTURE:NRC) Announces Financial Results for Six Months Ended June 30, 201212:20 EDT Wednesday, August 22, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2012) -NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICESNMC Resource Corporation (TSX VENTURE:NRC) ("NMC Resource") released its unaudited condensed consolidated interim financial statements for the six months ended June 30, 2012.HIGHLIGHTS (for the six months ended June 30, 2012)Recorded $5,095,379 in sales revenue Recorded $1,530,751 in EBITDA(1) at NMC Moland Mine ("Moland") and $1,154,182 in adjusted EBITDA(2)Reduced cash cost to $8.36 per pound of molybdenum sold during the second quarter of 2012NMC Resource recorded $5,095,379 in sales revenue for the six months ended June 30, 2012, compared to $6,466,870 recorded for the corresponding period in 2011. The decrease is mainly due to lower molybdenum market price. In the first half of 2012, the average molybdenum market price was US$14.00 compared to US$16.97 for the corresponding period in 2011. While maintaining positive operating cash flow, NMC Resource is stockpiling more product for better market environment.Increased production / Reduced cash cost / Ready for market recovery NMC Resource has focused on cash cost control and efficient production as proactive corporate measures in this time of market uncertainty. As a key proactive action, NMC Resource increased the production since April 2012. During the second quarter of 2012, the average daily throughput reached 1,109 tonnes, a 27% increase compared to 876 tonnes recorded for 2011. This production increase positively affected the cash cost per pound of molybdenum sold(3) and the Q2 cash cost was reduced by 9% from Q1 of 2012, recording at $8.36. NMC Resource will continue to work on reducing cash cost. Further production increase is also being implemented. Three months ended Six months endedJune 30, 2012June 30, 2011June 30, 2012June 30, 2011 Revenue $ 2,456,538 $ 2,722,839 $ 5,095,379 $ 6,466,870Earnings from mine operations204,838245,050212,831697,088EBITDA(2) at Moland846,3261,082,4541,530,7512,607,425Net income (loss) for the period (158,084)22,461 (762,215)236,383 Mined/Produced Ore (tonnes) 83,210 68,489 145,613 131,314Mill Head Grade (% MoS2)0.260.270.290.28Recovery (%)88898889Molybdenum concentrate produced (dmt MoS2)199167371332Average Daily Throughput (tonnes)1,109890971875 Molybdenum sold (lbs Mo) 189,355 178,600 398,160 417,970For further detail, please see copies of the unaudited condensed consolidated interim financial statements and related notes thereto for the three and six months ended June 30, 2012, and the corresponding MD&A available on SEDAR at www.sedar.com.(1) EBITDA: Net earnings before interest, taxes, depreciation and amortization (2) Adjusted EBITDA: Net earnings before interest, taxes, depreciation, amortization and share-based payment (3) Cash cost per pound of molybdenum sold: operating expenses in USD divided by the amount of molybdenum sold About NMC Resource Corporation NMC Resource Corporation (TSX VENTURE:NRC) is a mining company with two molybdenum assets: NMC Moland Mine ("Moland") in South Korea and Boss Mountain Mine ("Boss Mountain") in British Columbia, Canada. Moland started commercial production in April 2010 and a new technical report was filed in December 2011 with an updated resource. An active resource expansion drill program continues at Moland. Resource expansion drilling program requiring deep drill holes has been sponsored by KORES (Korea Resources Corporation, a state-owned mining company). Boss Mountain is a past molybdenum producer. NMC Resource is currently assessing historical data from 247 drill holes completed by the last mine operator Noranda Mines Ltd.On behalf of the board of NMC RESOURCE CORPORATION Do Hyung Kim; President, Chief Executive Officer and Director Forward-Looking Statements: This news release includes certain forward-looking information and forward-looking statements (collectively "Forward-Looking Statements") concerning the future performance of the Company's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Specifically, this news release includes Forward-Looking Statements that NMC Resource will continue to work to reduce cash cost and that further production increased will be implemented. Forward-Looking Statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-Looking Statements are based on the current opinions and expectations of management. All Forward-Looking Statements are inherently uncertain and subject to a variety of risks and uncertainties, including the speculative nature of mineral exploration and development generally and specifically in respect of the interpretation of the geology, continuity, grade and size of mineral deposits, unanticipated operational or technical difficulties, fluctuating commodity prices, competitive risks and the availability of financing, changes in laws or regulations, changes in the financial markets and changes in general economic conditions, as described in more detail in our recent securities filings available at www.sedar.com. Such Forward-Looking Statements are based on a number of assumptions, including but not limited to the level and volatility of the price of molybdenum, the availability of financing, the accuracy of reserve and resource estimates and the assumptions on which those estimates are based and the ability to achieve and maintain certain operational efficiencies. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual events or results may differ materially from those expressed or implied in the Forward Looking-Statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these Forward-Looking Statements, except as required by applicable law.FOR FURTHER INFORMATION PLEASE CONTACT: KIN Communications Inc.Investor Relations Contact:1 (866) firstname.lastname@example.orgOR(604) 643-1730NMC Resource Corporation(604) 210-9875 (FAX)www.nmcresource.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.