VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 15, 2016) - New Pacific Holdings Corp. (TSX VENTURE:NUX) ("New Pacific" or the "Company") today announced its audited consolidated financial results for the year ended June 30, 2016.
This earnings release should be read in conjunction with the Company's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.newpacificholdings.ca. All figures are expressed in Canadian Dollars (CAD) unless otherwise stated.
FISCAL YEAR 2016 HIGHLIGHTS
- Successfully changed the Company from a mining issuer to an investment issuer;
- Moved listing from TSX to TSX Venture; and
- Adjusted net income attributable to equity holders of $3.04 million, or $0.05 per share, compared to adjusted net income attributable to equity holders of $1.92 million, or $0.03 per share in the prior year.
FISCAL 2016 vs. FISCAL 2015
For the year ended June 30, 2016 ("Fiscal 2016"), net loss attributable to equity holders was $118,167 or $0.00 per share compared to net income of $1,739,248 or $0.03 per share for the year ended June 30, 2015 ("Fiscal 2015"). Excluding non-cash impairment loss of mineral property interests, adjusted net income attributable to equity holders was $3,039,114 or $0.05 per share in Fiscal 2016 compared to $1,915,149 or $0.03 per share in Fiscal 2015.
In Fiscal 2016, the Company's financial results were significantly improved as a result of the transition in the company's business away from mining. Major items impacting financial performance are as follows:
- Income from investments in Fiscal 2016 was $3,098,622, an increase of 1,431%, compared to $202,375 in Fiscal 2015. This increase was a direct result of the Company's business transition from exploration and development on mineral properties to investing in publicly-traded or privately-held corporations and other marketable instruments such as bonds. Within the investments income, $2,498,453 was unrealized gain on the Company's investment in Silvercorp Metals Inc. (TSX: SVM) shares and $577,538 was from fair value change and interest earned on bonds.
- Operating expenses in Fiscal 2016 was $1,029,722, a decrease of 30%, compared to $1,466,422 in Fiscal 2015. The noticeable decrease in operating expense was also a result of the Company's business transition. The reduced care and maintenance activities at the mine sites had a big impact on reducing operating expenses as certain senior management positions had their salaries reduced and mine site employees were laid off.
- Foreign exchange gain in Fiscal 2016 was $864,648, down 72%, compared to $3,129,372 in Fiscal 2015. The Company holds a large portion of cash and cash equivalents and bonds in US dollars while the Company's functional currency is Canadian dollar, the fluctuation in exchange rates between the US dollar and Canadian dollar will impact the financial results of the Company. In Fiscal 2016, US dollar appreciated by 4.3% against Canadian dollar (from 1.2474 to 1.3009) while in Fiscal 2015 US dollar appreciated by 14.4% against Canadian dollar (from 1.0676 to 1.2474). The slowdown of US dollar appreciation against Canadian dollar in Fiscal 2016 was the reason of the lower amount of foreign exchange gains.
As at June 30, 2016, the Company had working capital of $21,816,903 (June 30, 2015 - $22,364,687), comprised of cash and cash equivalents of $5,267,066 (June 30, 2015 - $14,851,828), bonds of $17,201,630 (June 30, 2015 -$8,826,997) and other current assets of $138,547 (June 30, 2015 - $129,260) offset by current liabilities of $790,340 (June 30, 2015 - $1,443,398). Management believes that the Company has sufficient funds to support its normal investing and operating requirement on an ongoing basis.
FOURTH QUARTER FINANCIAL SUMMARY
For the quarter ended June 30, 2016, the Company reported net loss attributable to equity holders of $1.76 million or $0.03 per share, compared to net loss of $0.8 million or $0.01 per share in the same prior year period. Excluding the non-cash impairment loss on mineral property interests, adjusted net income attributable to equity holders for Q4 Fiscal 2016 was $1.4 million or $0.02 per share compared to adjusted net loss of $0.6 million or $0.01 per share for Q4 Fiscal 2015.
Investment income in Q4 Fiscal 2016 consists of $1.24 million unrealized gain on equity investments and $0.28 million from fair value change and interest earned on bonds.
ABOUT NEW PACIFIC
New Pacific is a Canadian Investment Issuer engaged in investing in privately held and publicly traded corporations.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this press release constitute "forward-looking information" within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk, foreign investment risk loss of key personnel; conflicts of interest; dependence on management and others.
This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form for the year ended June 30, 2016 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.