 | | | August 29, 2011
North American Tungsten, Releases Third Quarter Financial Results
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| | VANCOUVER, BRITISH COLUMBIA: Mr. Stephen Leahy, Chairman and CEO of North American Tungsten Corporation Ltd. (the "Company" or "NTC"), announces the filing of the June 30th, 2011, 3rd quarter financial results.
THIRD QUARTER HIGHLIGHTS:- Net earnings were $1.3 million (Q2 2011 - net loss of $7.7 million)
- Concentrate production increased to 74,652 mtus WO3 (Q2 2011 - 43,727 mtus)
- Tons milled were 101,873 grading 1.03% WO3 (Q2 2011 - 76,980 grading 0.85% )
- Metallurgical recovery improved to 78.4% (Q2 2011 - 73.4%)
- The MB European mean quotation for APT (June 30, 2011) rose to US$461/mtu
- Revenues were $19.3 million (Q2 2011 - $11.4 million). The average selling price was US$272/mtu (Q2 2011 - US$228/mtu)
- Copper concentrate production was 166,397 pounds (Q2 2011 - 88,842 pounds) of contained Cu
- Operating cash flows before working capital changes were a positive $2.3 million (Q2 2011 - negative $7.1 million)
- A special committee commenced work on a project to optimize shareholder value from the Company's Mactung project
FINANCIAL RESULTS
The Company reports net earnings of $1.3 million for the three month period ended June 30, 2011 ("Q2") and $2.3 million cash flow from operating activities before changes in non-cash working capital.
During Q3 concentrate sales totalled $19.3 million, compared with $11.4 million for the three months ended March 31, 2011 ("Q2 2011"). Mine operating costs were $17.2 million including depreciation of $1.0 million which resulted in a gross margin of $2.2 million for Q3. - In Q3, production was 74,652 mtus compared to a forecast of 75,000 mtus as the benefits of the Company's Cantung investment program began to be realized. Tons milled increased to 101,873 grading 1.03% WO3 with metallurgical recovery of 78.4% compared to Q2 2011 production of 43,727 mtus from 76,980 tons grading 0.85% with a 73.4% recovery rate. Copper production in the quarter was 166,397 pounds compared to 88,842 pounds of contained Cu in Q2 2011.
- Cash flows from operations before working capital changes were a positive $2.3 million compared to negative $7.1 million in Q2 2011 as a result of increased production and sales volumes combined with a 19% increase in the average realized sales price of $272.30/mtu compared to $228.17/mtu in Q2 2011.
- Capital expenditures at CanTung for mining equipment, power generation and underground haulage ways were $3.3 million in Q3 compared to $6.5 million in Q2 2011. Expenditures on Mactung were $0.14 million in Q2 compared to $0.24 million in Q2 2011.
- The Special Committee formed during Q2 2011 has garnered significant interest from several industry leaders and the process continues to most effectively and responsively move forward to create greater shareholder value from it's Mactung asset.
The third quarter financial statements and MD&A were filed on SEDAR for public access and may also be accessed from the Company's website www.natungsten.com.
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 both a producing mine and strategic development asset in the western world. Mactung is one of the world's largest known undeveloped high grade tungsten-skarn deposits.
ON BEHALF OF THE BOARD OF DIRECTORS
"Stephen M. Leahy"
Stephen M. Leahy, Chairman & CEO
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
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, equipments 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.
INVESTOR CONTACT:
Jason Roy
jason@natungsten.com
info@natungsten.com
Cell: +1-514-240-7662
Tel: +1-647-780-2837 |
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