Nevsun Res. (NSU-T) Feb 26, '15 is pleased to report its financial and operating results for the year ended December 31, 2014. Unless otherwise noted, with the exception of earnings per share and realized price per ounce and per pound figures, all financial results are in millions of US dollars.
Full year 2014 highlights
Revenues of $555 million and earnings per share of $0.47
Cash provided by operating activities of $217 million
Working capital of $520 million, including $442 million cash
Produced 196 million pounds of copper against guidance of 180 to 200 million pounds
Achieved industry lowest-quartile C1 cash costs[1] of $1.05 per pound
Executed a successful 27,300 metre exploration program
Progressed zinc plant expansion – on time and on budget
Announced a 14% increase to the annualized dividend, from $0.14 to $0.16 per share (approximately 34% of earnings per share)
Q4 2014 highlights
Revenues of $139 million and earnings per share of $0.11
Cash provided by operating activities of $63 million
Produced 53 million pounds of copper with C1 cash costs of $1.071 per pound
Improved Q4 waste mining tonnage and daily milling throughput
Financial review
|
|
|
| Q4 2014
| 2014
| Revenues
| $
| 138.7
| $
| 555.0
| Operating income
|
| 70.3
|
| 295.3
| Net income
|
| 40.1
|
| 166.6
| Net income attributable to Nevsun shareholders
|
| 21.9
|
| 93.4
| Basic earnings per share attributable to Nevsun shareholders
|
| 0.11
|
| 0.47
|
|
|
|
|
| Copper price realized, per payable pound sold
|
| 2.87
|
| 3.02
| C1 cash cost per payable pound sold1
| $
| 1.07
| $
| 1.05
|
Cliff Davis, Nevsun CEO, commented, "The team at Bisha managed the copper business very well and the financial results speak for themselves. The strength of our balance sheet, our success at exploration and the demonstrated capital discipline over the past year should provide investor confidence in Nevsun's future. The ability to deliver on what we promise and the growing confidence of even further mine life extension prompted us to increase our dividend as a reward to our shareholders. We remain very focused on cost containment especially given the decrease in copper prices we have seen thus far in 2015."
Operating review
|
|
|
| Q4 2014
| 2014
| Ore mined, tonnes
| 617,000
| 2,282,000
| Waste mined, tonnes
| 3,380,000
| 12,277,000
| Strip ratio, (using tonnes)
| 5.5
| 5.4
| Ore milled tonnes
| 573,000
| 1,789,000
| Copper feed grade, %
| 4.9
| 5.9
| Recovery, % of copper
| 85.7
| 85.0
| Copper concentrate grade, %
| 25.8
| 26.3
| Copper in concentrate produced, millions of pounds
| 52.5
| 196.0
| Copper in concentrate produced, tonnes
| 23,800
| 88,900
| Payable copper in concentrate sold, millions of pounds
| 49.4
| 184.7
| Payable copper in concentrate sold, tonnes
| 22,400
| 83,800
|
Cliff Davis, "We are very pleased with our operating performance in 2014. It was critical to ensure we maximized the high grade phase of the supergene ore in 2014. With a solid year of operating experience in copper under our belts, we are poised for a strong 2015. We were very pleased to see higher mining and milling rates during Q4 2014 which give assurance that throughput rates can increase when feed grades gradually decline."
The Company's growth strategy remains intact. "We will continue to allocate capital for exploration in the underexplored Bisha VMS district. During 2014 we grew our indicated and inferred mineral resources. At Harena our inferred mineral resources increased by 498 million pounds of zinc and 156 million pounds of copper. With US$442 million in the bank at December 31, 2014, or US$2.24 per share, we are well positioned to fund external growth opportunities. Our patience to complete a merger or an acquisition has proven to be the right strategy. Given the current market conditions we expect there will be greater opportunities during 2015."
Conference call details
The Company will hold a conference call on Friday February 27, 2015, at 8:00AM Vancouver / 11:00AM Toronto, New York / 4:00 PM London, to discuss the annual 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: 1 888-390-0605 / +1 416-764-8609 / +1 778-383-7417
UK: 0800 652 2435 (toll free)
Other International: +1 416-764-8609 / +1 778-383-7417
The conference call will be available for replay until March 6, 2015, by calling 1 888-390-0541 / +1 416-764-8677 and entering passcode 517460.
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 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.
NEVSUN RESOURCES LTD.
"Cliff T. Davis"
Cliff T. Davis
President & Chief Executive Officer
__________________________
1 C1 cash cost per pound is a non-GAAP measure – see page 19 of the 2014 Annual MD&A for discussion of non-GAAP measures.
SOURCE Nevsun Resources Ltd.
 Kin Communications,
Tel: 604 684 6730,
Toll free: 1 866 684 6730,
Email: nsu@kincommunications.com ,
Website: www.nevsun.com |
