NWM Mining reports an operating profit of $1.8 million for Q2. 2012
23.08.2012 | CNW
TSX Venture Exchange
Symbol: NWM
TORONTO, Aug. 23, 2012 /CNW/ - NWM Mining Corporation (the "Company" TSX-V: NWM) is pleased to report an operating profit of $1.8 million (net income $1.0 million) for the quarter ended June 30, 2012.
Q2. 2012 highlights:
- Gold and silver revenues during the quarter amounted to $7,768,698. Revenue growth is planned for each successive quarter in 2012 as gold production increases, based on constant gold prices.
- The Company produced 4,813 ounces of gold in the second quarter and is budgeting to produce 25,000 ounces of gold for 2012.
- The cash cost per ounce of gold produced was $804 in the second quarter. This has risen from the first quarter as the ore grade mined decreased slightly. The cash cost per ounce is expected to remain constant throughout the remainder of the year as the grade increases, however the waste/ore strip ratio will also increase towards the life of mine strip ratio.
Summarized interim financial and operating results for the quarter were as follows:
| Three months ended | Six months ended | |||
| June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |
| Gold produced (oz) | 4,813 | 913 | 9,590 | 913 |
| Gold sold (oz) | 5,300 | 921 | 9,300 | 921 |
| Average realized gold price (US$/oz) | 1,609 | 1,612 | 1,640 | 1,612 |
| Average gold price (London PM Fix) (US$/oz) | 1,609 | 1,506 | 1,650 | 1,446 |
| Cash cost per gold ounce ($/oz) | 804 | n/a | 748 | n/a |
| Metal revenues ($) | 7,768,698 | n/a | 14,535,206 | n/a |
| Profit from operations ($) | 1,826,978 | (1,438,485) | 3,927,343 | (3,024,507) |
| Earnings ($) | 966,978 | (1,434,201) | 3,112,590 | (3,019,971) |
| Earnings per share, basic ($) | 0.002 | (0.004) | 0.006 | (0.008) |
| Earnings per share, diluted ($) | 0.002 | (0.004) | 0.006 | (0.008) |
| Cash from operations ($) | 1,793,297 | (928,880) | 4,214,957 | (1,983,126) |
| Total assets ($) | 51,983,206 | 37,491,425 | 51,983,206 | 37,491,425 |
Summarized production statistics for the quarter were as follows:
| Three months ended June 30 | Six months ended June 30 | |||
| 2012 | 2011 (Pre-production) | 2012 | 2011 (Pre-production) | |
| Ore mined | 717,778 | 460,490 | 1,458,399 | 853,678 |
| Average ore mined grade (g/t Au) | 0.38 | 0.60 | 0.40 | 0.48 |
| Waste mined (t) | 618,907 | 832,840 | 1,508,065 | 1,675,544 |
| Total mined (t) | 1,336,685 | 1,293,330 | 2,966,464 | 2,529,222 |
| Strip ratio | 0.86 | 1.81 | 1.03 | 1.96 |
| Total days in period | 91 | 91 | 181 | 181 |
| Average ore mined per day (t/d) | 7,888 | 5,060 | 8,057 | 4,716 |
| Gold produced (oz) | 4,813 | 913 | 9,590 | 913 |
"We are pleased with the results of the second quarter of commercial gold production at the Lluvia de Oro mine and expect increasing gold output over the remainder of 2012. Mining has now commenced at the higher grade Jojoba deposit. Higher grade Jojoba ores will increase average grades which in turn will lead to improvements in project economics and increased gold production, and we remain unhedged," 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