New Dawn Mining Corp. reports financial highlights for the quarter ended March 31, 2009



    TORONTO, May 14 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or
the "Company") announced that its financial results and corresponding
Management's Discussion and Analysis for the three months and six months ended
March 31, 2009 and 2008 have now been filed on Sedar and are also available to
view on the Company's website, www.newdawnmining.com.
    The Company prepares its consolidated financial statements in U.S.
Dollars and in accordance with Canadian Generally Accepted Accounting
Principles.
    The Quarter ended March 31, 2009 was highlighted by the following
activities:

    
    -   Positive economic policy changes in Zimbabwe during the quarter ended
        March 31, 2009, as previously reported, allow New Dawn to resume
        production activities

    -   STERP eliminated any retention on revenue derived from gold exports
        and allowed gold producers to direct market their gold and retain
        100% of the sale proceeds in foreign currency (US Dollars)

    -   Establishment of export process to South Africa for gold produced in
        Zimbabwe for payment in US Dollars with 100% retention of sales
        proceeds by New Dawn

    -   The Turk Mine in Zimbabwe was transitioned from care and maintenance
        to mine development - 63 new miners hired

    -   Production of 637 ounces of gold from the Turk Mine during
        development mode

    -   Cash and cash equivalents of US$3.46 million at March 31, 2009

    -   Working capital of US$3.74 million at March 31, 2009

    -   Company has no long-term debt and is 100% un-hedged

    Significant highlights subsequent to the Quarter ended March 31, 2009:

    -   Full production model was initiated at the Turk Mine in Zimbabwe (see
        Company news release dated May 4, 2009) - a further 93 new miners
        hired. Total new hires since transition from care and maintenance is
        156 miners

    -   Gold production at the Turk Mine in April 2009 exceeded internal
        expectation - output of 832 ounces of gold compared to 700-750 ounces
        of projected gold production

    -   Gold sales totaling approximately US$1,304,000 for the month of April
        2009
    

    FINANCIAL RESULTS

    Second Quarter Fiscal 2009 (Six Months Ended March 31, 2009)

    OVERALL PERFORMANCE

    The Company started the period with a move to a care and maintenance mode
on October 3, 2008 for its Turk Mine and effectively the cessation of
exploration work on other Zimbabwe properties amid a rapidly worsening
economic environment. At the time of the move to care and maintenance, the
Reserve Bank of Zimbabwe ("RBZ") owed the Company almost US$3,000,000. The
Zimbabwe government's January 2009 annual fiscal budget set the foundations
for the January 2009 Monetary Policy Statement ("MPS") and the March 2009
Short Term Emergency Recovery Program ("STERP").
    The most significant aspects contained within these statements and
programs were the ones that effectively converted the country's operating
currency from Zimbabwe Dollars to US Dollars and South African Rand.
Additionally, the removal of exchange controls over both payments of less than
US$5,000,000 to foreign suppliers and foreign loans of less than US$5,000,000,
as well as the removal of any mandatory surrender of revenues to the RBZ, were
also included. Of particular importance to the gold mining industry was the
revocation of the requirement to sell all gold production to the RBZ.
    Together these initiatives have significantly improved the economic
conditions in Zimbabwe to the point where, on February 26, 2009, the Company
announced a change from care and maintenance mode to development mode and,
subsequent to March 31, 2009, on May 4, 2009, the Company announced that a
further change to a normal production mode was being initiated. During March
2009, the Turk Mine produced 637 ounces of fine gold that was shipped and
recognized as revenue in April 2009.
    From the date of the MPS, the Company, in concert with the Chamber of
Mines of Zimbabwe, has consulted with the various authorities in Zimbabwe and
South Africa to establish and test the process to export gold for processing
at Rand Refiners in South Africa.
    As a result, the Company made its first shipment to Rand Refiners at the
beginning of April 2009, receiving full payment in US Dollars approximately
two weeks later.
    The Blue Dot project in South Africa is approaching the point at which
the determination of whether or not to move to full production will be made.
The Company is currently in the process of preparing a feasibility study to
assist in this decision.

    REVENUE

    The Company's sole source of operating revenue during the past three
fiscal years, and at present, is from the sale of gold bullion from the Turk
Mine. Effective February 26, 2009, the Turk Mine in Zimbabwe transitioned from
care and maintenance to active mine development. However, because of the delay
in establishing the process for the export of gold to Rand Refiners in South
Africa, no gold was shipped in the period ended March 31, 2009, and therefore
no revenue was recorded. Subsequent to March 31, 2009, the first shipment to
Rand Refiners occurred on April 4, 2009. Since then and up to May 8, 2009, the
Company has shipped and recorded as revenue 1,640 ounces of fine gold.
    Payment for gold shipped to Rand Refiners is received within
approximately one to two weeks of shipment.

    OPERATING COSTS

    Although Turk Mine transitioned from care and maintenance to active
development, operating costs for the three months ended March 31, 2009 were
relatively unchanged from the previous quarter. Total operating costs,
including all corporate and other general operating expenses, were
approximately $1.19 million for the three months ended March 31, 2009 and
approximately $2.2 million for the six months ended March 31, 2009.

    CASH RE

SOURCES and LIQUIDITY At March 31, 2009, cash and cash equivalents were US$3.46 million, a decrease of US$0.48 million from December 31, 2008. The Company has no long-term debt obligations, no unfunded work program for the balance of 2009, and has working capital of US$3.74 million at March 31, 2009. The Company has a short term bank loan of US$250,000 for working capital purposes that was used to finance the resumption of operations at the Turk Mine. The Company anticipates repaying this loan by June 30, 2009. The Company's working capital at March 31, 2009 is US$3.74 million. With production at the Company's Turk Mine now underway and with production increases planned, management believes the current working capital is sufficient to fund the Company's other exploration and development activities and overheads through the remainder of fiscal 2009 and beyond, including all currently planned expenditures. OVERVIEW OF PROJECTS The Company is engaged in the production of gold and related activities, including exploration, development, mining and processing in the Southern African Development Community ("SADC"). The Company's principal assets are: the actively producing Turk Mine in Zimbabwe; the advanced exploration project Angelus Mine in Zimbabwe; and the advanced exploration project Blue Dot property in South Africa. The Company has 2 production facilities; one in Zimbabwe that is currently capable of processing up to 400 tonnes per day or 12,000 tonnes per month, and a facility in South Africa that is rated at 180 tonnes per day or 5,500 tonnes per month. New Dawn also maintains a highly experienced work force of over 940 people in Zimbabwe and South Africa. Production at the Turk Mine has the potential to increase to 650 tonnes per day with very little incremental cost. New Dawn has a significant resource base at its Turk, Angelus and Blue Dot Mine Properties. As at December 2008, using a 2.45 g/t cut-off grade based on US$875/oz gold, the aggregate mineral resources and reserves for the three properties, based on NI 43-101 compliant technical reports, are as follows: Mass (t) Grade (g/t) Ounces ------------ ------------ ------------ Proven and Probable Reserves 1,307,810 3.94 166,444 Measured and Indicated Resources 5,016,130 5.00 811,375 ------------ ------------ ------------ Total - Reserves and Resources 6,323,940 4.78 977,819 ------------ ------------ ------------ ------------ ------------ ------------ Inferred 2,082,000 5.19 347,600 ------------ ------------ ------------ ------------ ------------ ------------ The Turk Mine and the Angelus Mine are contained within a large contiguous block of claims, with a total area of 2,171 hectares. As well, the Company holds an additional 357 hectares of other claims within 10 kilometers of the Turk Mine. The Blue Dot property consists of two blocks of mineral rights of 1,145 hectares and 2,746 hectares. The Company has other assets that form a portfolio of exploration properties, and include the Consolidated Bubi Gold Fields, consolidated Midlands Gold Fields, and consolidated Shurugwi Gold Fields properties, all of which are located in Zimbabwe. OUTLOOK With the goal of becoming a meaningful gold producer in the region, New Dawn is well-established in southern Africa, owning both an operating and producing mine and processing facilities, as well as substantial developmental acreage in Zimbabwe. To attain this goal, the Company, in the next quarter and beyond, intends to continue to increase production at its operating Turk Mine, continue forward with its exploration and mine development work at its other properties, while exploring other potential opportunities in the region. New Dawn continues to review additional value accretive opportunities in the region and will to report to shareholders in this regard as material developments occur. The contents of this news release were supervised and reviewed by Ian R. Saunders, B.Sc., who is President, Chief Executive Officer, and a Director of New Dawn Mining Corp., and who is a Qualified Person within the meaning of NI 43-101. Investors are invited to visit the New Dawn Mining Corp. IR Hub at AGORACOM: http://www.agoracom.com/ir/NewDawn, where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail questions and correspondence to: ND@agoracom.com, where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time. Special Note Regarding Forward-Looking Statements: Certain statements included or incorporated by reference in this news release, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words "believe," "expect," "anticipate," "contemplate," "target," "plan," "intends," "continue," "budget," "estimate," "may," "schedule" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, risks relating to reserve and resource estimates, gold prices, exploration, development and operating risks, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs and dependence on key employees. See "Risk Factors" in the Company's May 29, 2008 Prospectus. Due to risks and uncertainties, including the risks and uncertainties identified above, actual events may differ materially from current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Forward-looking statements are made as of the date of this Management Discussion and Analysis and the Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or results or otherwise. %SEDAR: 00026497E

For further information:

For further information: Investor Relations Contact: Richard Buzbuzian,
(416) 585-7890; President and Chief Executive Officer: Ian R. Saunders, (416)
585-7890; Visit us on the internet: http://www.newdawnmining.com or Email us
at: info@newdawnmining.com

Organization Profile

New Dawn Mining Corp.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890