VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2013) - North American Tungsten Corporation Ltd. (TSX VENTURE:NTC) ("NTC" or "the Company") announces a net loss of $4.0 million or $0.02 per share for its first quarter ended December 31, 2012 ("Q1 2013") compared to net earnings of $6.6 million or $0.03 per share for the first quarter end of fiscal 2012 ("Q1 2012").
The Company's Q1 2013 Unaudited Interim Consolidated Financial Statements and Management's Discussion & Analysis thereon may be accessed under the Company's profile on SEDAR (www.sedar.com) and may also be accessed at the Company's website www.natungsten.com.
Highlights for Q1 2013:
- Record production of 80,693 mtus at the CanTung Mine since restart of operations in 2010
- Revenue dropped to $11.5 million vs. $26.4 million for Q1 2012 due to lower volume and prices
- Cash flow from operating activities of $0.1 million vs. $6.5 million for Q1 2012
- Net loss of $4.0 million vs. net income of $6.6 million for Q1 2012
- In Q2, tungsten prices are again trending upwards and customer demand is again strong
The Company's Q1 2013 financial results were negatively affected by the significant drop in APT prices during the latter half of 2012, dropping from a high of USD$450/mtu in December 2011 to a low of USD$295/mtu in December 2012 (An mtu is a metric tonne unit of 1 percent of a metric tonne (22.046 pounds) of contained WO3; tungsten concentrate prices are based on APT quotations).
This significant price drop, most of which occurred in the last calendar quarter of 2012 with major impact in Q1 2013, was driven by worldwide economic uncertainty and a reduction in overall demand.
In addition there was a delay in the renewal of a Supply Agreement with one of our major customers. This is now complete and deliveries re-started as of January 1, 2013. During Q1 2013 the Company also successfully negotiated an additional Supply Agreement with a major North American customer.
The Company is very pleased with Q1's record production of 80,693 mtus by our "Tungsten Team" at the CanTung Mine. The mill processed 90,625 tonnes of ore during the quarter, with an average feed grade of 1.12% WO3 and average mill recovery of 79.5% compared to Q1 2012 in which 76,628 mtus were produced from 88,460 tonnes of ore milled with an average feed grade of 1.12% and an average mill recovery of 77.4%.
"The increase in both throughput and mill recovery at CanTung were contributing factors in weathering the recent APT pricing downturn," said Stephen Leahy, CEO of NTC. He went on to say, "the APT market prices have risen steadily since the beginning of January and are now in the USD$345 to USD$355 range per mtu which is a very good sign for producing companies such as ourselves," Mr. Leahy further stated, "I wish to thank our "Tungsten Team" for all of their hard work and dedication in achieving this record quarterly production. We look forward to working closely with all our stakeholders, shareholders, vendors, customers and partners to building a better Company for all."
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen M. Leahy, Chairman & CEO
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company's 100% owned CanTung mine and MacTung development project make it one of the few tungsten producers with a strategic asset in the western world. MacTung is one of the world's largest known undeveloped high grade tungsten-skarn deposits.
Cautionary Note: The Company relies upon litigation protection for "forward-looking" statements.
Safe Harbour Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," "believes," or variation of such words and phrases that refer to certain actions, events or results to be taken, and other factors which may cause the actual results, performance or achievements of North American Tungsten Corporation Ltd. To be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of reclamation activities, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, future prices of commodities, possible variations in ore grade or recovery rates, efficacy and efficiency of milling process, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks in the mining industry. Although North American Tungsten Corporation Ltd. has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein and in North American Tungsten Corporation Ltd.'s other filing incorporated by reference.
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