Nordex Explosives Ltd.
TSX VENTURE : NXX

Nordex Explosives Ltd.

August 28, 2015 07:00 ET

Nordex Explosives Quarter 2 Financial Results

KIRKLAND LAKE, ONTARIO--(Marketwired - Aug. 28, 2015) - NORDEX EXPLOSIVES LTD. ("Nordex" or the "Corporation") (TSX VENTURE:NXX) is pleased to announce the filing of the Second Quarter financial statements and management discussion and analysis for the fiscal period ended June 30, 2015. This information is available on SEDAR and the Corporation's website.

Highlights for the Second Quarter ending June 30, 2015

  • Revenue of $4,855,248 for the period, compared to $4,287,224 in the First Quarter ending March 31, 2015; an increase of 13.2%.
  • Gross profit of $645,197 for the period, compared to $382,432 in the First Quarter ending March 31, 2015; an increase of 68.7%
  • Appointment of Mr. Sean Conroy to the position of Chief Financial Officer.
  • Implementation of cost savings initiatives related to raw material costs and foreign exchange solutions to lessen impact of US / Canadian dollar exchanges.
  • Non-mining sales now consist of 25% of revenue, a corporate strategy designed to lessen the reliance on the mining industry and broaden client base.
  • Total Assets of $18,565,122 and total liabilities of $10,135,563 for a book value of $8,429,559.

Nordex is continuing to identify potential cost savings initiatives as the current mining cycle remains in a depressed condition. In addition to this strategy, the Corporation will investigate and pursue new opportunities in the quarry and construction sector, while maintaining the highest quality of service and products to existing mining clients. Subsequent to the end of Quarter 2, the Corporation received approval at its annual general meeting to create a new control person; which is NIL Funding Corp. ("NIL"), an affiliate of the Article 6 Marital Trust created under the First Amended and Restated Jerry Zucker Revocable Trust. NIL has provided a loan in the amount of CDN $2.0 million effective August 26, 2015 with payments beginning in October 2015.

President and CEO Jim Taylor states; "We are continuing to make progress with cost savings, and expect to recognize new savings in Quarter 3 which will continue in future quarters. Although the slowdown in the mining business has hampered the development of potential customers in this sector, we have proven our line of proprietary products to be superior to competitor products, while demonstrating a smaller environmental footprint. We look forward to the introduction of our suite of products to new customers in North America in the quarry, construction and mining sectors"

About Nordex Explosives

Nordex Explosives Ltd. is a Canadian based manufacturer and distributor of explosives for the mining, quarry and construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Additional information can be found at www.nordexexplosives.com

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

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