NMC Resource Corporation

TSX VENTURE : NRC


NMC Resource Corporation

November 21, 2012 17:07 ET

NMC Resource (TSX VENTURE:NRC) Reports Third Quarter 2012 Results and AGM Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2012) - NMC Resource Corporation (TSX VENTURE:NRC) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES

NMC Resource Corporation ("NMC Resource") released its unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2012, and its AGM results.

Results for the Nine Months Ended September 30, 2012

  • Recorded $7,315,421 in sales revenue
  • Recorded $1,923,637 in EBITDA(1) at NMC Moland Mine ("Moland") and $1,432,243 in adjusted EBITDA(2)
  • Increased the mill capacity to 1,300 tonnes per day ("tpd") at Moland

NMC Resource recorded $7,315,421 in sales revenue for the nine months ended September 30, 2012, compared to $9,225,940 recorded for the corresponding period in 2011. The decrease is mainly due to lower molybdenum ("moly") market price. During the period, the average moly market price was US$13.31 compared to US$16.19 for the corresponding period in 2011.

During the third quarter of 2012, NMC Resource successfully increased its mill capacity at Moland to 1,300 tpd by installing an additional cone crusher and screen in the underground crushing chamber, with sponsorship from a South Korean government agency. Due to the halted production while installing the new crushing system and conducting the system testing, the Q3 moly concentrate production decreased to 190 tonnes from 199 tonnes recorded for Q2. The Q3 cash cost per pound of moly sold(3) was US$8.94.

2011
Quarterly Average
2012
Q1
2012
Q2
2012
Q3
Ore milled (T) 66,386 62,403 83,210 69,217
Mill head grade (% MoS2) 0.29 0.31 0.26 0.30
Recovery (%) 89 88 88 89
Molybdenum concentrate produced (DMT MoS2) 172.5 172 199 190
Daily throughput (T) 876 832 1,109 1,003

Three months ended

Nine months ended
September 30,
2012
September 30,
2011
September 30,
2012
September 30,
2011
Revenue $ 2,220,042 $ 2,759,070 $ 7,315,421 $ 9,225,940
Earnings from mine operations (285,205 ) 79,484 (72,374 ) 776,572
EBITDA(2) at Moland 392,886 678,791 1,923,637 3,286,216
Net income (loss) for the period (521,419 ) (466,721 ) (1,283,634 ) (230,338 )
Mined/Produced Ore (tonnes)
69,217

64,817

214,830

196,131
Mill Head Grade (% MoS2) 0.30 0.31 0.29 0.29
Recovery (%) 89 89 89 89
Molybdenum concentrate produced (dmt MoS2) 190 182 561 514
Average Daily Throughput (tonnes) 1,003 876 981 876
Molybdenum sold (lbs Mo) 208,187 206,857 606,347 624,827

For further detail, please see copies of the unaudited condensed consolidated interim financial statements and related notes thereto for the three and nine months ended September 30, 2012, and the corresponding MD&A available on SEDAR at www.sedar.com.

(1) EBITDA: Net earnings before interest, taxes, depreciation and amortization
(2) Adjusted EBITDA: Net earnings before interest, taxes, depreciation, amortization and share-based payment
(3) Cash cost per pound of molybdenum sold: operating expenses in USD divided by the amount of molybdenum sold

AGM Results

NMC Resource is pleased to announce the results of its annual general meeting of shareholders held on November 9, 2012 in Vancouver, British Columbia, which was attended, in person and by proxy, by shareholders holding 21,128,533 common shares of the Company, or approximately 76,65% of the shares entitled to vote at the annual general meeting.

Shareholders re-elected incumbent directors, James Currie, Bruce Durham, Do Hyung Kim, Sang Joon Lee and Yoo Sup Han to the board of directors of the Company.

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. 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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