North American Tungsten Reports 2015 Second Quarter Results and Provides an Operational Update

North American Tungsten Corporation Ltd. (TSXV:NTC) announced its second quarter financial results which show a net loss of $6.4 million or $0.03 per share for the three months ending March 31 and a net loss of $6.6 million for the six months ending March 31.

As quoted in the press release:

These results are significantly down from net income of $2.5 million and a net loss of $2.1 million for the comparable periods in fiscal 2014.

The Company’s March 31, 2015 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.

Despite improvements in mill throughput and metallurgical recovery, the Company’s production significantly decreased to 70,871 MTUs during Q2 2015 (89,116 MTUs in Q2 2014) driven by a decrease in mill feed grade from 1.22% WO₃ to 0.87% WO₃. The Company is encouraged with the improvements in mill throughput and metallurgical recovery as the mine and mill improvement programs are substantially complete.

Revenues were $23.5 million for the quarter compared to $23.1 million, an increase of 2%. While MTUs sold increased 13%, the average realised sales price in US dollars (“USD”) continued its steady decline as average APT prices fell from USD$370 per MTU to USD$282 per MTU, a decrease of 31%. The Company benefited from the strengthening of the USD by 12% against the Canadian dollar.

With the decrease in production and lower APT prices, operations from Cantung resulted in a gross margin from operations of $1.0 million compared to a gross margin of $5.4 million in Q2 2014. Cash flows from operations were $2.0 million for Q2 2015, a slight improvement from an inflow of $1.8 million in the comparable period.

Kurt Heikkila, chairman and CEO of North American Tungsten, commented:

Results continue to be impacted by lower APT prices and significant fluctuations in the mill feed grade. During this challenging time, management continues to scrutinize capital and operating expenses. The Company is initiating a severe cash conservation program and is considering other operational and financial alternatives.

Click here to read the full North American Tungsten Corporation Ltd. (TSXV:NTC) press release.