News Releases

Show printable version of 'North American Tungsten Q2: Revenue of $33.4 milli...' in a New Window
 May 23, 2012
North American Tungsten Q2: Revenue of $33.4 million; EBITDA1 of $8.8 million and Net Income of $2.5 million

 Vancouver, BC -- North American Tungsten (TSX.V: NTC) ("NTC" or the "Company"), the leading North American tungsten concentrate supplier, today reported net income of $2.5 million or $0.01 earnings per diluted share, and EBITDA1 of $8.8 million for its fiscal second quarter ending March 31, 2012, compared with a loss of $8.0 million, or $0.04 per diluted share, and negative EBITDA1 of $6.8 million for the prior-year period.

"I'd like to thank our employees for their efforts during the quarter, the second consecutive quarter of solid earnings." said Stephen Leahy, Chairman and CEO. "We are pleased with our current results and the excellent progress made on our key strategic focus areas."


Total revenue for the second quarter was $33.4 million compared with revenue of $11.4 million for the prior-year period.

During the quarter, mill throughput averaged 1,017 tons daily, mill recovery was 76% and mill availability was 95%. Power generation was reliable and the mine delivered an average feed grade of 1.12% WO3. Accordingly, the Company was able to produce 72,000 metric tonne units (mtu's) of tungsten concentrate and sell 83,000 mtu's. Market prices continued to be relatively stable during the quarter.

In support of its strategic plan, NTC invested $7.1 million in capital improvements during the quarter for a total of $13.1 million in expenditures year to date.

Stephen Leahy, Chairman and CEO, commented that, "Ongoing capital investments are guided by our 'CanTung Enhancement Strategy,' focused on initiatives to extend mine life and strengthen our long-term performance." He went on to say, "We are positioning NTC to deal with the risk and volatility inherent in our business and profit from the great long term opportunity the tungsten market represents. We are pleased with our current results but recognize that, challenges will always remain and that results may fluctuate for a period. Improved access and additional flexibility underground continue to be a priority for production at CanTung."

1EBITDA is a non IFRS measure. EBITDA is net income before taxes with interest and financing costs, interest income, depreciation and amortization and accretion removed.


On May 18, 2012, the Company renewed its credit facilities, amended certain of the financial covenants, amended the operating loan facility and amended the repayment terms to two equipment loans.

The amended operating loan facility has a maximum of $12.0 million (previously $8.0 million with up to $4.0 million excess borrowings permitted with the excess secured by USD cash deposits at HSBC). The $12.0 million maximum can be exceeded by up to $3.0 million with the excess secured by USD cash deposits at HSBC. Up to USD$5.0 million of the facility may be in USD. The borrowing base is a percentage of trade accounts receivable and product inventory. The loan is supported by the Accounts Receivable Insurance Program of Export Development Canada ("EDC"). The loan carries interest at HSBC Bank prime rate + 2.0% per annum.

The arrangement with HSBC also included interest only payments, on two of the equipment loans, from April 30, 2012 up to and including September 30, 2012, with the deferred principal repayments (totaling $1.4 million) added to the remaining amortization term of the loans.

The second quarter financial statements and MD&A were filed under the Company's profile on SEDAR ( for public access and may also be accessed from the Company's website


NTC continues to solidify its position as the Western World's largest producer of tungsten concentrate. With the implementation of the 'CanTung Enhancement Strategy', NTC remains strongly committed to developing an industry leading tungsten mining and processing operation by strengthening the long‐term strategic position of CanTung:
  1. Enhance the stable mining and milling operations developed during the latter part of 2011.
  2. Increase the resource of economically accessible ore both underground and open pit through continuing development.
  3. The Company is developing the necessary processing technology to reprocess the substantial existing tailings.
  4. Increase both underground and surface exploration activity.
  5. Continue to develop strong local government and regulatory relationships.
  6. Enhance the strong management team and skilled work force.

NTC continues to pursue the development of its MacTung deposit. The Company believes that it can leverage the experience and expertise at CanTung to effectively create value at the MacTung deposit. The permitting process is well advanced. The Company has seen interest in the MacTung deposit from a number of international companies.

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 a strategic asset in the western world. MacTung is one of the world's largest known undeveloped high grade tungsten‐skarn deposits.

"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: The Company relies upon litigation protection for "forward-looking" statements.

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, equipment 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.

INVESTOR CONTACT:, Phone: +1.604.684.5300 Fax: +1.604.684.2992

You can view the Next News Releases item: Wed Jun 6, 2012, Amber Zone Update

You can view the Previous News Releases item: Thu Apr 12, 2012, North American Tungsten Announces Q2 Production

You can return to the main News Releases page, or press the Back button on your browser.

Adnet Communications Inc.