NMC Resource Corporation

NMC Resource Corporation

May 29, 2012 08:30 ET

NMC Resource (TSX VENTURE:NRC) Announces Financial Results for the Three Months Ended March 31, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2012) - NMC Resource Corporation (TSX VENTURE:NRC) -


NMC Resource Corporation ("NMC Resource") released its unaudited condensed consolidated financial statements for the first quarter ended March 31, 2012.


  • Recorded $2,638,841 in sales revenue
  • Produced 172 tonnes of molybdenum concentrates at 0.31% MoS2 mill head grade and 88% recovery
  • Recorded $488,891 in adjusted EBITDA* and $684,425 in EBITDA at NMC Moland Mine ("Moland") operation
  • Sold 208,805 pounds of molybdenum at US$9.22 cash cost per pound of molybdenum sold

NMC Resource recorded $2,638,841 in sales revenue and $604,131 as net loss for the three months ended March 31, 2012. The revenue in the first quarter of 2012 decreased by 29.5% from the first quarter of 2011 ($3,744,031) mainly due to lower molybdenum prices.

From April 1st 2012, NMC Resource has increased its daily throughput by 20% compared to 2011 levels and plans to implement a further 15% increase by the end of this year. During the month of April 2012, the average daily throughput exceeded the target increase of 20% with production averaging at 1,118 tonnes, a 28% increase compared to the average daily throughput in 2011. The average cash cost per pound of molybdenum sold is expected to decrease due to the increased production and optimizations efforts at the mine. An additional production ramp-up is scheduled for later this year, intended to further improve the mine's economics.

As the sole producer of molybdenum in South Korea, NMC Resource is also examining a number of marketing and production strategies to further enhance the mine's profitability.

* Adjusted EBITDA: Net earnings before interest, taxes, amortization and share-based payment

About NMC Resource Corporation

NMC Resource Corporation (TSX VENTURE:NRC) is a mining company with two molybdenum assets: NMC Moland Mine ("Moland") in South Korea and Boss Mountain Mine ("Boss Mountain") in British Columbia, Canada. Moland started commercial production in April 2010 and a new technical report was filed in December 2011 with an updated resource. An active resource expansion drill program continues at Moland. Resource expansion drilling program requiring deep drill holes has been sponsored by KORES (Korea Resources Corporation, a state-owned mining company). Boss Mountain is a past molybdenum producer. NMC Resource is currently assessing historical data from 247 drill holes completed by the last mine operator Noranda Mines Ltd.

On behalf of the board of NMC RESOURCE CORPORATION

Do Hyung Kim, President, Chief Executive Officer and Director

Forward-Looking Statements: This news release includes certain forward-looking information and forward-looking statements (collectively "Forward-Looking Statements") concerning the future performance of the Company's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Specifically, this news release includes Forward-Looking Statements that NMC Resource plans to implement a further 15% increase in daily throughput by the end of this year at Moland, that the average cash cost per pound of molybdenum sold is expected to go down due to the increased production and optimizations efforts at the mine and that an additional production ramp-up at Moland is scheduled for later this year, intended to further improve the mine economics. Forward-Looking Statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-Looking Statements are based on the current opinions and expectations of management. All Forward-Looking Statements are inherently uncertain and subject to a variety of risks and uncertainties, including the speculative nature of mineral exploration and development generally and specifically in respect of the interpretation of the geology, continuity, grade and size of mineral deposits, unanticipated operational or technical difficulties, fluctuating commodity prices, competitive risks and the availability of financing, changes in laws or regulations, changes in the financial markets and changes in general economic conditions, as described in more detail in our recent securities filings available at www.sedar.com. Such Forward-Looking Statements are based on a number of assumptions, including but not limited to the level and volatility of the price of molybdenum, the availability of financing, the accuracy of reserve and resource estimates and the assumptions on which those estimates are based and the ability to achieve and maintain certain operational efficiencies. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual events or results may differ materially from those expressed or implied in the Forward Looking-Statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these Forward-Looking Statements, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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