Cash Cow!! Nevsun Resources (NSU-T) Oct 30, '14 is pleased to report its financial and operating results for the three and nine months ended September 30, 2014. Unless otherwise noted, with the exception of earnings per share and realized copper price and cost per pound figures, all financial results are in millions of US dollars.
Third quarter 2014 highlights
Earnings per share of $0.13 Cash generated from operating activities of $84 million Working capital of $519 million, including $380 million of cash and $113 million in current receivables Produced 56.4 million pounds of copper in the quarter (19% increase over Q2) Achieved industry lowest quartile C1 cash costs of $1.07 per pound Announced successful drilling results confirming a VMS district in and around Bisha Zinc plant expansion on track for 2016 start-up Achieved a safety milestone of over three years without a lost time injury Paid peer leading annualized dividend of $0.14 per share (approximately 29% of earnings)
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| Q3 2014
| Q2 2014
| Q1 2014
| YTD 2014
| Revenues
| $
| 147.9
| $
| 169.2
| $
| 99.2
| $
| 416.3
| Operating income
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| 78.1
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| 94.9
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| 52.0
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| 225.0
| Net income
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| 44.6
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| 53.7
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| 28.2
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| 126.5
| Net income attributable to Nevsun shareholders
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| 25.5
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| 30.5
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| 15.5
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| 71.5
| Basic earnings per share attributable to Nevsun shareholders
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| 0.13
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| 0.15
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| 0.08
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| 0.36
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| Working capital
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| 519.0
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| 497.8
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| 462.2
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| 519.0
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| Copper price realized, per payable pound sold
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| 2.98
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| 3.21
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| 3.01
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| 3.08
| C1 cash cost per payable pound sold (1)
| $
| 1.07
| $
| 1.05
| $
| 0.98
| $
| 1.04
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(1)
| C1 cash cost is a non-GAAP measure and includes mine site operating and general and administrative costs, freight, treatment and refining charges, less by-product credits. Royalties are excluded from the calculation of the C1 cash cost. Non-GAAP measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP Performance Measure in the Q3 MD&A for a reconciliation of IFRS measures to C1 cash cost.
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"The team has delivered another highly profitable quarter," stated Cliff Davis, President and CEO of Nevsun. "Nevsun earned $44.6 million during Q3 2014 ($25.5 million attributable to Nevsun shareholders) or $0.13 per share. These results leave the Company in an even stronger position to execute its growth objectives."
Operations Review
Key operating information – Bisha Mine:
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| Q3 2014
| Q2 2014
| Q1 2014
| YTD 2014
| Ore mined, tonnes(1)(2)(3)
| 481,000
| 697,000
| 487,000
| 1,665,000
| Waste mined, tonnes
| 2,707,000
| 2,719,000
| 3,471,000
| 8,897,000
| Strip ratio, (using tonnes)
| 5.6
| 3.9
| 7.1
| 5.3
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| Processing – copper:
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| Ore milled, tonnes
| 477,000
| 386,000
| 353,000
| 1,216,000
| Copper feed grade, %
| 6.3
| 6.6
| 6.1
| 6.3
| Recovery, % of copper
| 85.6
| 84.6
| 83.5
| 84.7
| Copper concentrate grade, %
| 27.2
| 27.1
| 28.8
| 27.6
| Copper in concentrate produced, millions of pounds
| 56.4
| 47.4
| 39.7
| 143.5
| Copper in concentrate produced, tonnes
| 25,600
| 21,500
| 18,000
| 65,100
| Payable copper sold, millions of pounds(4)
| 49.8
| 51.5
| 34.0
| 135.3
| Payable copper sold, tonnes(4)
| 22,600
| 23,400
| 15,400
| 61,400
| Copper price realized per payable pound sold
| $
| 2.98
| $
| 3.21
| $
| 3.01
| $
| 3.08
| C1 cash cost per payable pound sold
| $
| 1.07
| $
| 1.05
| $
| 0.98
| $
| 1.04
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| (1)
| Ore tonnes mined for the three month period ended March 31, 2014 included 91,000 tonnes of oxide ore including pyrite sand, 382,000 tonnes of supergene ore and 14,000 tonnes of primary ore.
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| Ore tonnes mined for the three month period ended June 30, 2014 included 126,000 tonnes of oxide ore including pyrite sand, 531,000 tonnes of supergene ore and 40,000 tonnes of primary ore.
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| Ore tonnes mined for the three month period ended September 30, 2014 included 1,000 tonnes of oxide ore including pyrite sand, 426,000 tonnes of supergene ore and 54,000 tonnes of primary ore.
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| Q1 2014 included 4.5 million pounds or 2,000 tonnes (Q4 2013 – 30.6 million pounds or 13,900 tonnes) of pre-commercial production. Receipts from pre-commercial production sales were credited against mineral property, plant and equipment, net of cost of sales.
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Cliff Davis commented, "We are pleased to report strong performance by the Bisha plant and in the trucking logistics as the Bisha ore body continues to deliver continued high grade copper feed. Monetizing our working capital including accounts receivable from our customers, the amount due from our partner and the copper concentrate in finished goods will be our short term objective so as to have a strong finish to the year. In the longer term, another major focus is to ensure our zinc plant is commissioned on time and on budget so as to capitalize on expected strong zinc prices."
Conference call details
The Company will hold a conference call on Friday, October 31, 2014, at 8:00AM Vancouver / 11:00AM Toronto, New York / 4:00 PM London, to discuss the Q3 2014 results. Please call in at least five minutes prior to the conference call start time to ensure prompt access to the conference. Dial in details are as follows:
North America: 1 888-390-0546 / +1 416-764-8688 / +1 778-383-7413
UK: 0800 652 2435 (toll free)
Other International: +1 416-764-8688 / +1 778-383-7413
The conference call will be available for replay until November 8, 2014, by calling 1 888-390-0541 / +1 416-764-8677 and entering passcode 602544.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company with an operating mine in Eritrea. Nevsun's 60%- owned Bisha Mine commenced commercial copper concentrate production in December 2013 and ranks as one of the highest grade open pit copper mines in the world. Nevsun has a strong balance sheet and future cash flows to grow shareholder value through exploration at Bisha and acquisition of additional mining assets.
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NEVSUN RESOURCES LTD.
"Cliff T. Davis"
Cliff T. Davis
President & Chief Executive Officer
SOURCE Nevsun Resources Ltd. |
