NWM Mining Corporation reports a profit of $2.1 million for Q1. 2012
31.05.2012 | CNW
TSX Venture Exchange
Symbol: NWM
TORONTO, May 31, 2012 /CNW/ - NWM Mining Corporation (the "Company" TSX-V: NWM) is pleased to report an operating profit of $2.1 million for the quarter ended March 31, 2012.
Q1. 2012 highlights:
- Gold and silver revenues during the quarter amounted to $6,766,508. Revenue growth is planned for each successive quarter in 2012 as gold production increases, based on constant gold prices.
- The Company produced 4,777 ounces of gold in the first quarter and is budgeting to produce 25,000 ounces of gold for 2012.
- The cash cost per ounce of gold produced was $689 in the first quarter. This is expected to rise slightly in subsequent quarters as the waste/ore strip ratio will increase towards the life of mine strip ratio. The increase to cash costs anticipated from an increasing strip ratio will be partially offset by increased gold production going forward.
- Cash costs reported in a prior release were higher than actual cash costs, as first quarter ore inventory was higher than had originally been estimated. The Company expects life of mine cash costs of $900 per ounce of gold produced. Increases to strip ratio anticipated in project mine plans, will be offset by economies of scale in production throughput as gold production ramp up continues.
Summarized interim financial and operating results for the quarter were as follows:
| Three months ended March 31 | ||
| March 31, 2012 | March 31, 2011 (Pre-production) | |
| Gold produced (oz) | 4,777 | - |
| Gold sold (oz) | 4,000 | - |
| Average realized gold price ($ USD /oz) | 1,681 | - |
| Average gold price (London PM Fix) ($ USD /oz) | 1,691 | 1,386 |
| Cash cost per gold ounce ($/oz) | 689 | n/a |
| Metal revenues ($) | 6,766,508 | - |
| Profit from operations ($) | 2,100,365 | - |
| Earnings ($) | 2,145,612 | (1,586,022) |
| Earnings per share, basic ($) | 0.004 | (0.04) |
| Earnings per share, diluted ($) | 0.004 | (0.04) |
| Cash from operations ($) | 2,421,660 | (1,054246) |
| Total assets ($) | 50,114,876 | 34,959,437 |
Summarized production statistics for the quarter were as follows:
| Three months ended March 31 | ||
| 2012 | 2011 (Pre-production) | |
| Ore mined (tonnes) | 740,621 | 393,188 |
| Average ore mined grade (g/t Au) | 0.41 | 0.34 |
| Waste mined (t) | 889,158 | 842,704 |
| Total mined (t) | 1,629,779 | 1,235,892 |
| Strip ratio | 1.20 | 2.14 |
| Total days in period | 91 | 90 |
| Average ore mined per day (t/d) | 8,139 | 4,369 |
| Gold produced (oz) | 4,777 | 0 |
"We are pleased with the first quarter of commercial gold production at the Lluvia de Oro deposit and expect increasing mine output over the next three quarters of 2012. The recent start-up of mining operations at the Jojoba deposit will augment gold production going forward and will improve the economics of the project," stated Chris Berlet, CEO of NWM.
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
Chris Berlet, President & CEO or Chris Chadder, CFO
Phone: 416-364-6799 Fax: 416-364-2595
info@nwmcorp.ca