TORONTO, May 9, 2013 /CNW/ - Liberty Mines Inc. (TSX: LBE) ("Liberty" or the "Company") today
reported its financial results for the 3-month period ended March 31,
2013. All amounts are in Canadian currency.
During Q1 the Company focused its efforts on reducing its ongoing cash
requirements to maintain the business in a care and maintenance mode.
Given the current suppressed nickel price, the Company expects the
Timmins operations will remain shut down for at least the balance of
2013 if not longer. The Company has elected to allow the McWatters Mine
to flood but pumping continues at the Redstone Mine. As part of the
cost savings initiatives, a further reduction in personnel has been
made across the organization including some members from the executive
Further to the Company's press releases dated January 23, 2013 and March
27, 2013 the Company continues its internal review of the
identification of chrysotile at the McWatters Mine. The Company has
been working with the Ministry of Labour to address all applicable
health and safety issues with respect to the Timmins site and is in
communication with all applicable regulatory authorities. It has been
determined that the Company's Mill will need to be decontaminated
before any activities can be resumed.
Selected financial highlights
All amounts in thousands except share data
March 31, 2013
March 31, 2012
Cost of sales
Net (loss) income
Basic earnings (loss) per share
March 31, 2013
March 31, 2012
Cash and Cash Equivalents
Review of Q1 Financial Performance
Revenue for Q1 2013 was $29,372 up from $19,240 for Q1 2012. The
increase was a result of revenue received for PGM credits from the
concentrate Xstrata processed during operations in 2012.
Net loss for Q1 2013 was $6.1 million or $0.03 per basic and fully
diluted share. The loss included amortization expenses of $2.1
million, interest on long-term debt of $2.5 million and dividends on
preferred shares of $0.3 million. In the same period of 2012, Liberty
recorded a net loss of $7.9 million or $0.04 per basic and fully
diluted share. Liberty's mining and milling operations were partially
functional in Q1 of 2012.
At March 31, 2013, Liberty had cash and cash equivalents of $404,740.
This compares to $0.54 million at year end 2012.
Liberty's financial statements for the period ended March 31, 2013 are
available at www.libertymines.com and www.sedar.com. The financial statements should be read in conjunction with the
accompanying notes and management's discussion and analysis.
About Liberty Mines Inc.
Liberty Mines Inc. is focused on the exploration, development and
production of nickel, copper, cobalt and platinum group metals from its
properties in Ontario, Canada. It owns the only nickel concentrator in
the Shaw Dome area, a prospective nickel belt region near Timmins,
Ontario. Liberty is looking to expand its business through growth
initiatives not only through a more aggressive exploration program on
its current properties but also through potential acquisition or
partnership opportunities beyond its core Timmins area projects.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This News
Release includes certain "forward looking statements". All statements
other than statements of historical fact included in this release,
without limitation, statements regarding future plans and objectives of
Liberty, are forward looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from Liberty's
expectations are: exploration risks; commodity prices; regulatory
approvals; receipt of mining permits and leases; and assumed startup
and operating costs detailed herein and from time to time in the
filings made by Liberty with securities regulators. Forward-looking
statements speak only as of the date on which they are made. The
Company undertakes no obligation to publicly update any such statement
or reflect new information or the occurrence of future events or
circumstances, except where required by securities regulations.
Accordingly, readers should not place undue reliance on forward-looking
SOURCE: Liberty Mines Inc.
For further information:
Chris Stewart, President & CEO
(416) 226-4360 ext 203