VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 10, 2017) - New Pacific Holdings Corp. ("New Pacific" or the "Company") (TSX VENTURE:NUX) today announced its unaudited condensed consolidated interim financial results for the three and six months ended December 31, 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.
HIGHLIGHTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2016
- Bonds portfolio continued to perform well, fair value gain and interest earned combined were $611,720 for the period, representing an annualized return of 7.31%;
- Successfully acquired equity investments from open markets and private placements. Unrealized gain on equity investments during the period was $0.68 million;
- Net income attributable to equity holders of $1.35 million, or $0.02 per share, compared to net income attributable to equity holders of $1.81 million or $0.03 per share in the prior year period.
HIGHLIGHTS FOR THE SECOND QUARTER ENDED DECEMBER 31, 2016
- Fair value gain and interest earned on bonds combined were $152,954 for Q2 Fiscal 2017 compared to $68,364 for the prior year period;
- Mining industry focused equity investment portfolio incurred an unrealized loss of $2.54 million as a result of a temporary dip in global precious metal prices during the period. Subsequent to the period end, these unrealized losses were fully recovered as precious metal prices rebounded;
- Net loss attributable to equity holders of $2.23 million, or $0.03 per share, compared to net income attributable to equity holders of $0.42 million or $0.01 per share in the prior year period.
For the six months ended December 31, 2016, net income attributable to equity holders was $1,353,652 or $0.02 per share compared to net income of $1,807,843 or $0.03 per share for the six months ended December 31, 2015.
For the three months ended December 31, 2016, net loss attributable to equity holders was $2,228,616 or $0.03 per share compared to net income of $421,784 or $0.01 per share for three months ended December 31, 2015.
Major items impacting financial performance are as follows:
Income from investments for the six months ended December 31, 2016 was $1,321,232 compared to $47,336 for six months ended December 31, 2015. This significant increase was a direct result of the Company's business change 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, $677,826 was an unrealized gain on the Company's equity investments and $611,720 was from fair value change and interest earned on bonds.
For the three months ended December 31, 2016, loss from investments was $2,361,196 compared to loss of $37,290 for three months ended December 31, 2015. Within the loss, $2,542,886 was an unrealized loss on the Company's equity investments in the mining industry. During the quarter, shares of most of the companies in the mining industry suffered loss due to a temporary dip in the global precious metal prices. Subsequent to period end, these unrealized losses were fully recovered. Fair value change and interest earned on bonds for the quarter was $152,954.
Operating expenses for the six months ended December 31, 2016 was $652,254 compared to $552,202 for the six months ended December 31, 2015. For three months ended December 31, 2016, operating expenses was $398,894 compared to $257,881 for the same prior year period. The increase in operating expenses was a result of the Company's increased activities in seeking various high quality investment opportunities globally.
Foreign exchange gain for the six months ended December 31, 2016 was $598,828 compared to $2,256,576 in the same prior year period. The Company holds a large portion of cash and cash equivalents and bonds in US dollars while the Company's functional currency is the Canadian dollar, the fluctuation in exchange rates between the US dollar and Canadian dollar will impact the financial results of the Company. During the six months ended December 31, 2016, the US dollar appreciated by 3.2% against Canadian dollar (from 1.3009 to 1.3427) while in the same prior year period the US dollar appreciated by 11.0% against Canadian dollar (from 1.2474 to 1.3840). The slowdown in the US dollar appreciation against the Canadian dollar in the relative periods was the reason for the reduced amount of foreign exchange gains.
For the three months ended December 31, 2016, foreign exchange gain was $449,762 compared to $680,418 for the same prior year period.
The Company would like to extent its best wishes to Rodney Stevens who has resigned from his position as Vice President of Corporate Development to pursue other opportunities.
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.