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North American Tungsten Corporation Ltd. (TSXV:NTC) announced its net loss for its Q1 fiscal results for the three months ending December 31, 2014 are substantially improved compared to the previous year.
North American Tungsten Corporation Ltd. (TSXV:NTC) announced its net loss for its Q1 fiscal results for the three months ending December 31, 2014 are substantially improved compared to the previous year. The company reported a net loss of just US$0.2 million in Q1 or $0.00 per share, up from $4.5 million for Q1 2013 ending December 31, 2013. It also increased production to 83,549 MTUs during this first quarter with is up 21,481 MTUs on year, which it said was driven by increased mill throughput, relatively high-grade mill feed and improved metallurgical recovery which is a result of the mill improvement program initiated last year. The increase in production saw the gross margin increase from a negative $1.6 million in Q1 2014 to $4.0 million in Q1 2015.
As quoted in the press release:
Revenues were $21.5 million for the quarter compared to $20.5 million, an increase of 5%. While MTUs sold increased 11%, the average realized sales price in US dollars (“USD”) declined 12% as average APT prices fell from USD$386 per MTU to USD$327 per MTU. The Company benefited from the strengthening of the USD by 8% against the Canadian dollar.
The Company continues to incur significant interest and financing costs (Q1 2015 – $1.7 million) and in Q1 2015, the impact of the strengthening USD resulted in a $1.4 million foreign exchange loss related to the USD denominated debt facilities. The Company could incur significant additional foreign exchange losses if the USD continues to strengthen and maintains that level for extended periods of time.
Chairman and CEO, Kurt Heikkila, commented:
The Company is starting to see the results of the mine and mill improvement process. Our mill throughput and metallurgical recoveries have increased resulting in higher levels of MTUs produced. We have identified other areas of potential improvement to the mill to increase recovery. With these planned future improvements and improvements to date, we are optimistic that higher recoveries can be achieved. Higher production levels leverage our fixed operating costs and reduce our cost per ton mined, milled and sold.
About the North American Tungsten Corporation Ltd.
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company’s 100% owned Cantung mine and Mactung development project make it one of the few tungsten producers with a strategic asset in the western world. Mactung is one of the world’s largest known undeveloped high grade tungsten-skarn deposits.
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