North American Tungsten Corporation Ltd. (TSXV:NTC) reported a net loss of $0.4 million for the three months ended June 30, 2014. The company recorded improvements in its net losses for both the three and nine months ending June 30, and reported strong operational progress.
As quoted in the press release:
The Company’s production decreased to 59,877 mtus during Q3 2014, driven primarily by lower grade mill feed and metallurgical recovery. Sales revenues were $22.5 million for the quarter and $66.0 million for the nine month period. This was an increase of 7% and 15% respectively due to higher realised prices as compared to the comparable periods of fiscal 2013. There was a further significant benefit from the decline in the exchange value of the Canadian dollar. Cash flows from operations before change in non-cash working capital were $2.7 million for Q3 2014 and $8.6 million for the nine months ended June 30, 2014, a significant improvement from an outflow of $0.3 million and $0.5 million respectively, in the comparable 2013 periods.
North American Tungsten chairman and CEO, Kurt Heikkila, said:
While the overall financial results for the quarter were somewhat disappointing, we have made significant progress on the operational front. The mill enhancement project has now been substantially completed to allow us to increase our throughput in the mill by close to 25% and increase our tungsten recoveries. We believe our exploration and development drilling program will identify additional resources to extend the life of the Cantung mine. The new waste water treatment plant has been completed, commissioned and is fully operational. We are well under way with our seasonal open pit mining campaign to supplement our underground mining to support the additional mill capacity.