http://www.newswire.ca/en/story/1528263/nevsun-reports-37-million-in-operating-cash-flow-in-q1-2015
April 30, 2015 5:10 PM
Nevsun Reports $37 Million in Operating Cash Flow in Q1 2015
VANCOUVER, April 30, 2015 /CNW/ - Nevsun Resources Ltd. (TSX:NSU)(NYSE
MKT:NSU) (Nevsun or the Company) is pleased to report its financial
and operating results for the three months ended March 31, 2015.
Unless otherwise noted, with the exception of earnings per share and
realized price and cost per pound figures, all financial results are
in millions of US dollars.
First quarter 2015 highlights
Earnings per share of $0.06
Net cash provided by operating activities of $37 million
Working capital of $517 million, including $443 million of cash
Produced 38 million pounds of copper in the quarter
Achieved industry lowest-quartile C1 cash costs(1) of $1.23 per
payable pound sold
Paid quarterly dividend of $0.04 per share
Announced increased mineral resource at Bisha and Harena
Continued progress of zinc plant expansion – on time and on budget
Financial Review
Q1 2015
Q1 2014
Revenue (millions)
$
117.2
$
99.2
Operating income (millions)
42.6
52.0
Net income (millions)
23.0
28.2
Net income attributable to Nevsun shareholders (millions)
12.6
15.4
Basic earnings per share attributable to Nevsun shareholders
0.06
0.08
Working capital (millions)
517.0
462.2
Copper price realized, per payable pound sold
2.49
3.01
C1 cash cost per payable pound sold(1)
$
1.23
$
0.98
"We've concluded another successful and profitable quarter, despite a
five year low in copper prices." stated Cliff Davis, President and CEO
of Nevsun. "Nevsun earned $23 million during Q1 2015 ($12.6 million
attributable to Nevsun shareholders) or $0.06 per share. We believe
these operating results demonstrate the quality of our asset and our
management team. The zinc expansion project continues to progress
well and is expected to be completed on time and on budget. We have
been careful not to commit any of our zinc off-take so as to take
advantage of the expected tightening of worldwide zinc supply just as
our zinc concentration production begins."
Operations Review
Q1 2015
Q1 2014
Ore mined, tonnes
657,000
487,000
Waste mined, tonnes
3,517,000
3,471,000
Strip ratio, (using tonnes)
5.4
7.1
Ore milled tonnes
441,000
353,000
Copper feed grade, %
4.7
6.1
Recovery, % of copper
83.8
83.5
Copper concentrate grade, %
24.8
28.8
Copper in concentrate produced, millions of pounds
38.0
39.7
Copper in concentrate produced, tonnes
17,200
18,000
Payable copper in concentrate sold, millions of pounds(1)
47.4
34.0
Payable copper in concentrate sold, tonnes(1)
21,500
15,400
(1) Q1 2014 included 4.5 million pounds or 2,000 tonnes of
pre-commercial production. Receipts from pre-commercial production
sales were credited against mineral property, plant and equipment, net
of cost of sales.
Cliff Davis continued, "In spite of the plant shutdown as a result of
a mechanical issue with the ball mill gear box in mid-March, the
strong performance of the Bisha team during January and February
enabled us to produce 38 million pounds of copper in concentrate by
processing approximately 441,000 tonnes of ore, averaging about 4.7%
copper. In the meantime, we took advantage of the temporary shutdown
to complete or accelerate both scheduled and preventative maintenance
and mine additional waste, leading to a quarterly record for tonnes
mined at Bisha. The mill is expected to perform at the necessary
throughput rate to achieve our 2015 production guidance."
The Company issued its 2014 CSR Report on April 23, 2015. Cliff Davis
commented, "We are proud to be able to demonstrate the economic
benefits for our shareholders through our total shareholder returns
and for the people of Eritrea, through taxes paid and our ever
increasing levels of local procurement. The positive impact we are
having on the health and safety of our people, the environment and the
communities in which we operate are equally as important as the
economic benefits. As the flagship mine in the country, we are aiming
to create the national template for mining excellence."
"We have had continued great exploration results so far this year.
The successful methodology used in 2014, particularly at Harena, is
now being utilized across the Company's licensed areas. We remain
confident in the potential the Bisha district has to offer."
Conference call details
The Company will hold a conference call on Friday, May 1, 2015, at 8AM
Vancouver / 11AM Toronto, New York / 4PM London, to discuss the Q1
2015 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 May 8, 2015, by
calling 1 888-390-0541 / +1 416-764-8677 and entering passcode 486448.
Received on Thu Apr 30 2015 - 20:59:06 EDT