TSX Venture Exchange
Symbol: NWM
TORONTO, May 1, 2013 /CNW/ - NWM Mining Corporation (the
"Company" TSX-V: NWM) is pleased to report an operating net income
of $3,393,813 for the year ended
December 31, 2012.
2012 highlights:
- Commercial production was achieved in January 2012.
- Gold revenues during the year amounted to $29,488,266 (fourth quarter $7,732,103).
- The Company produced 5,175 ounces of gold in the fourth quarter
and 19,094 ounces for the year.
- In the fourth quarter the Company engaged an experienced mine
management team with a track record of success in developing and
operating heap leach mines to further develop the Lluvia de Oro
mine.
- The new management team has mobilized a mine contractor capable
of executing the planned mining ramp up.
Summarized financial and operating results for
the year were as follows:
|
Three months ended |
Twelve months ended |
|
December 31,
2012 |
December 31,
2011 |
December 31,
2012 |
December 31,
2011 |
Gold produced (oz) |
5,175 |
2,846 |
19,094 |
6,555 |
Gold sold (oz) |
4,420 |
2,430 |
18,447 |
5,808 |
Average realized gold price (US$/oz) |
1,708 |
1,691 |
1,656 |
1,705 |
Average gold price (London PM Fix) (US$/oz) |
1,723 |
1,572 |
1,669 |
1,572 |
Cash cost per gold ounce ($/oz)
(1) |
845 |
n/a |
858 |
n/a |
Metal revenues ($) |
7,732,103 |
n/a |
29,488,266 |
n/a |
Profit (loss) from operations ($) |
(599,780) |
(1,334,721) |
3,393,813 |
(6,586,509) |
Earnings ($) |
(599,780) |
(1,334,721) |
3,393,813 |
(6,586,509) |
Earnings per share, basic ($) |
(0.001) |
(0.003) |
0.01 |
(0.02) |
Earnings per share, diluted ($) |
(0.001) |
(0.003) |
0.01 |
(0.02) |
Cash from operations ($) |
(438,798) |
(766,273) |
6,722,006 |
(3,484,611) |
Total assets ($) |
57,403,374 |
46,121,299 |
57,403,374 |
46,121,299 |
(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.
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.
Summarized production statistics for the year were as
follows:
|
Three months ended December
31 |
Twelve months
ended December 31 |
|
2012 |
2011
(Pre-production) |
2012 |
2011
(Pre-production) |
Ore mined (tonnes) |
276,356 |
637,397 |
2,182,631 |
2,342,340 |
Average ore mined grade (g/t Au) |
0.46 |
0.49 |
0.49 |
0.53 |
Waste mined (t) |
682,369 |
937,244 |
4,346,038 |
3,472,273 |
Total mined (t) |
959,231 |
1,574,641 |
6,528,669 |
5,814,613 |
Strip ratio |
2.50 |
1.47 |
2.00 |
1.48 |
Total days in period |
92 |
92 |
365 |
365 |
Average ore mined per day (t/d) |
3,004 |
6,928 |
5,980 |
6,417 |
Gold produced (oz) |
5,175 |
2,796 |
19,094 |
6,555 |
"We are pleased with the 2012 results from the
Lluvia de Oro mine, which was our first year of commercial gold
production. NWM was profitable despite completing a significant
amount of waste stripping. A reversion to lower strip ratios in
subsequent quarters will assist in yielding higher profits going
forward. The waste to ore stripping ratio for the fourth quarter
averaged 2.5:1 which was a significant decrease from the third
quarter stripping ratio of 3.27:1. The Life of Mine average waste
to ore stripping ratio for Lluvia de Oro mine is expected to be
closer to 1.4:1 and profitability is expected to continually
improve," stated Chris Berlet, CEO
of NWM.
The Company reports that the acquisition of
Auriga Gold Corp., as announced on March 1,
2013, will not be pursued at this time. This decision is
made in consideration of the current market environment and the
conditions precedent for the transaction. NWM's management will
focus on improvement and ramp up of the Lluvia de Oro mine in the
near term.
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 |
SOURCE NWM Mining Corporation