VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 22, 2014) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES
NMC Resource Corporation (TSX VENTURE:NRC) ("NMC Resource" or the "Company") released its unaudited condensed consolidated financial statements for the first quarter ended March 31, 2014.
* Selected Information (Expressed in Canadian Dollars unless otherwise stated)
|Weighted average number of common shares outstanding
|EBITDA at Moland
|Realized molybdenum average price per pound
|Produced molybdenum concentrate
||213 T (237 wet T)
||173 T (193 wet T)
|Mill head grade
During the three months ended the first quarter, March 31, 2014, NMC Resource improved production by 23% and sales by 7.4% year-on-year, with a 12.8% drop in realized price of molybdenum (moly). The adjusted EBITDA increased by 14.3%.
In April and May this year, moly price has rapidly risen to over 14 dollars1 due to the tight supply in the market. In consideration of an all-in cash cost** at US$7.35 per pound of moly sold in the first quarter of 2014, the Company expects substantial increase of operating profits in 2014, if this price trend continues.
For the development of lubricant-grade moly concentrate, NMC Resource purchased major equipments such as attrition mill and jet mill pulverizer to set up a pilot plant.
On Boss Mountain, NMC Resource submitted Notice of Work to implement a 3,000-metre drill program in 2014 or 2015.
Please visit www.nmcresource.com for more information.
* Adjusted EBITDA: Net earnings before interest, taxes, amortization, share-based payment and impairment on a consolidated basis
** All-in cash cost includes operating expenses, exploration expenses, selling, general & administrative expenses, and sustaining capital expenditure at Moland
1. This per-pound price is in the form of moly oxide (MoO3). NMC Resource produces moly concentrate (MoS2), selling at a discount from the moly oxide price. The average moly price of Q1, 2013 was US$9.98, and the realized price for the Company was US$9.01. The discount rate is reduced as the price goes up.
About NMC Resource Corporation
NMC Resource Corporation (TSX VENTURE:NRC) is a mining company with two molybdenum assets: 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. A 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
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.
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 MD&A includes Forward-Looking Statements regarding that in consideration of an all-in cash cost** at US$7.35 per pound of moly sold in the first quarter of 2014, the Company expects substantial increase of operating profits in 2014, if this price trend continues. 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.