Nordex Explosives Ltd.
TSX VENTURE : NXX

Nordex Explosives Ltd.

May 29, 2015 13:12 ET

Nordex Explosives Releases 2015 Q1 Financial Results

KIRKLAND LAKE, ONTARIO--(Marketwired - May 29, 2015) - NORDEX EXPLOSIVES LTD. ("Nordex" or the "Corporation") (TSX VENTURE:NXX) announces the filing of the first quarter financial statements and management discussion and analysis for the three-month period ended March 31, 2015. This information is available on SEDAR and the Corporation's website.

Summary of the three-month period ending March 31, 2015 includes the following:

  • Revenue of $4,287,224 compared to $5,330,559 for the comparative period ending March 31, 2014. The difference in revenue was attributable to ongoing transitions in operations of significant mining clients during the current quarter, as well as a non-recurring one-time product sale in Q1 of 2014. These lost revenues were partially offset by increases in revenues from construction and quarry clients.
  • Net Loss of $303,085 was primarily attributable to increases in core raw materials costs and foreign exchange losses.
  • Key raw material costs increased approximately 20% over the prior year comparative quarter. These costs are expected to decline in the coming months as new supplier agreements come into effect.
  • Foreign exchange rates for US dollar purchases averaged $0.80 during the first quarter of 2015 compared to a more favourable rate of $0.91 in the first quarter of 2014.
  • In response to the sudden and sustained impact of the increased raw material and foreign exchange costs, additional operating cost cutting measures are being implemented in early June 2015.
  • Mr. Peter C. Bourgeois appointed to the Board of Directors.
  • Mr. Duncan Middlemiss appointed to the Board of Directors.

President and CEO Jim Taylor states: "Our first quarter 2015 financial results have been negatively affected by the weakened Canadian dollar during the period. We are confident our strategy to mitigate rising raw material and operating costs will yield improvements in our margins and overall cost profile moving forward in 2015. Management will continue to tightly control costs and implement additional cost savings opportunities throughout the 2015 fiscal year, while remaining focused on expanding and diversifying our customer base through the ongoing development of new products and strategically located satellite sites."

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. Nordex is the exclusive supplier of the "Buttbuster" perimeter control explosive products in Canada. 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.

Contact Information