New Dawn Mining Corp. Reports Financial Results For the Quarter Ended March
31, 2010

    
    $3.8 Million in Revenue from 3,427 Ounces of Gold Sold

    Q2 Fiscal 2010 - Quarter Ended March 31, 2010 Financial Highlights
    ------------------------------------------------------------------
    (All amounts are in US dollars)

    -   $3,801,780 in revenue from gold sales for the quarter ended March 31,
        2010, as compared to $3,969,038 of revenue from gold sales for the
        quarter ended December 31, 2009

    -   3,427 ounces of gold sold during the quarter ended March 31, 2010 at
        an average sale price of $1,109  per ounce, as compared to 3,604
        ounces of gold sold during the quarter ended December 31, 2009 at an
        average sale price of $1,101 per ounce

    -   Adjusted EBITDA of $1,063,935 for the quarter ended March 31, 2010,
        as compared to Adjusted EBITDA of $1,439,065  for the quarter ended
        December 31, 2009 (Adjusted EBITDA is a non-GAAP measure)

    -   $4,527,033 of cash at March 31, 2010, as compared to $4,506,446  of
        cash at December 31, 2009

    -   $6,864,288 in working capital at March 31, 2010, as compared to
        $6,879,897 of working capital at December 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 quarter ended March 31, 2010 have now been filed on SEDAR and are also available to view on the Company's website at www.newdawnmining.com.

The Company prepares its consolidated financial statements in U.S. Dollars and in accordance with Canadian Generally Accepted Accounting Principles.

    
    HIGHLIGHTS OF Q2 FISCAL 2010 FINANCIAL RESULTS

    Selected unaudited quarterly financial information is presented below.

    -------------------------------------------------------------------------
    Fiscal 2010                                           Quarters Ended
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                                                    March 31,    December 31,
                                                        2010            2009
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    -------------------------------------------------------------------------
    Operations
    -------------------------------------------------------------------------
      Revenue                                   $  3,801,780    $  3,969,038
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      Net income (loss) for the period(3)       $   (461,372)   $    927,494
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      Basic and diluted earnings (loss)
       per share(3)                                   ($0.02)          $0.03
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Balance sheet
    -------------------------------------------------------------------------
      Total assets                              $ 19,620,871    $ 18,628,285
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      Total liabilities                         $  5,302,744    $  3,971,871
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    -------------------------------------------------------------------------
    Cash dividends per share                             Nil             Nil
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Other measures
    -------------------------------------------------------------------------
      Quantity of gold produced (oz)                   3,395           3,239
    -------------------------------------------------------------------------
      Quantity of gold sold (oz)                       3,427           3,604
    -------------------------------------------------------------------------
      Intercompany loan repayments from
       Zimbabwe                                 $    436,455    $  2,500,000
    -------------------------------------------------------------------------
      Cash cost per oz(1)                       $        653    $        580
    -------------------------------------------------------------------------
      Adjusted EBITDA(2)                        $  1,063,935    $  1,439,065
    -------------------------------------------------------------------------
    (1) Cash cost per ounce is a non-GAAP measure as more fully described in
        the discussion at the end of MD&A entitled Non-GAAP Measures, as
        filed on SEDAR.
    (2) Adjusted EBITDA is a non-GAAP measure as more fully described in the
        discussion at the end of MD&A entitled Non-GAAP Measures, as filed on
        SEDAR.
    (3) As a result of the tax rate change, the future income tax liability
        was adjusted and the increase was charged to the statement of
        operations at the time of the rate change, as described in the
        section "Earnings" below.
    

Three Months Ended March 31, 2010

Operating comparisons presented above are for the quarter ended March 31, 2010, as compared to the quarter ended December 31, 2009, as the Turk Mine was not in operation during the quarter ended March 31, 2009.

REVENUE

The Company moved to full production at its Turk Mine, effective May 4, 2009, and increased production throughout the remainder of the calendar year.

During the quarter ended March 31, 2010, the Company reported revenue of $3,801,780 from the sale of 3,427 ounces of gold, as compared to revenue of $3,969,038 from the sale of 3,604 ounces of gold for the quarter ended September 30, 2009.

All gold sales were received in US Dollars and all gold sold was produced from the Company's Turk Mine in Zimbabwe.

The Company received an average of $1,109 per ounce of gold sold during the quarter ended March 31, 2010, as compared to $1,101 per ounce of gold sold during the quarter ended December 31, 2009.

GOLD PRODUCTION

During the quarter ended March 31, 2010, New Dawn produced 3,396 ounces of gold, as compared to 3,239 ounces of gold produced during the quarter ended December 31, 2009, an increase of 4.8% quarter over quarter. This production increase was achieved despite the negative effects of an increasing number of unscheduled power cuts during the most recent quarter. At March 31, 2010 month-end, an additional 399 ounces or 12.4 kg's of gold awaited export for sale in South Africa, and will be included in April 2010 revenues.

The cash cost per ounce of gold produced at the Turk Mine during the quarter ended March 31, 2010 was US$653 per ounce, as compared to $580 per ounce for the quarter ended December 31, 2009. The increasingly unreliable power supply negatively affected cash costs per ounce during the most recent quarter. In the near term, power supply uncertainties may cause gold production output to vary monthly until power supply levels become more normalized and reliable.

However, with recently completed deepening of the Armenian shaft at the Turk Mine and previously announced plans to install diesel generators at Turk Mine for back-up power, New Dawn remains ahead of schedule in its plan to progressively increase annualized gold production at the Turk Mine to an anticipated rate of approximately 22,000 to 23,000 ounces of gold by mid-2011.

The future production profile of the Turk and Angelus Mine complex indicates an annual production capability ranging from approximately 35,000 to 50,000 ounces of gold from 3 existing separate mine shaft systems - specifically, the Main Vertical Shaft, the Armenian Shaft and the Angelus Shaft.

After announcing four consecutive quarters of production output and sales figures on a monthly basis during ramp up mode, New Dawn will now begin to report its production output and sales on a quarterly basis as production output has reached normalized levels.

EARNINGS

Net loss for the quarter ended March 31, 2010 was $461,372 or $0.02 per share, as compared to net income of $927,494 or $0.03 per share for the quarter ended December 31, 2009. The Company had pre-tax earnings of $760,527 for the quarter ended March 31, 2010, which were reduced by the effect of the recent increase in the corporate income tax rate in Zimbabwe that resulted in an increase in deferred income tax liability of $946,075 which was charged to income tax expense in the quarter ended March 31, 2010. This tax expense is a non-cash expense item and a long-term accrual that is expected to be liquidated over future periods.

Net loss for the comparative quarter ended March 31, 2009 was $1,251,025 or $0.04 per share.

OPERATING EXPENSES

Mine operating costs were adversely affected during the quarter ended March 31, 2010, most significantly by the power availability issues noted above. Three additional factors that exacerbated production costs on a cost per ounce of gold produced basis included:

    
    1.  The imposition of a 3% royalty imposed by the Zimbabwe government
        beginning in August 2009 that increased to 3.5% effective January 1,
        2010.

    2.  A planned reduction in the grade of ore processed in an effort to
        maximize mine life.

    3.  An increase in labor costs from the addition of onsite labor; wage
        levels remained constant.
    

Corporate and administrative overhead for the quarter ended March 31, 2010 remained relatively consistent with the quarter ended December 31, 2009 on an aggregate basis. Corporate and administrative overhead increased in the quarter ended March 31, 2010, as compared to the quarter ended March 31, 2009, primarily as a result of the expansion of the comprehensive investor relations/public relations program that the Company initiated in January 2009 and stock-based compensation costs relating to stock options granted in October 2009.

CASH RESOURCES and LIQUIDITY

At March 31, 2010, cash and cash equivalents were $4,527,033 as compared to $4,506,446 at December 31, 2009.

At March 31, 2010, the Company has working capital of $6,864,288 as compared to $6,879,897 at December 31, 2009.

The Company continues to have no long-term debt obligations or unfunded work programs.

Management believes that its current working capital, combined with increasing production at the Company's Turk Mine that is generating positive cash flow, are sufficient to fund the Company's planned exploration and development activities and mine infrastructure projects through 2010 and beyond.

CONCLUDING COMMENTS

"Since resumption of operations in May 2009, I am pleased to report the second consecutive quarter of positive results with $3.8 million in revenue from the sale of 3,427 ounces of gold and EBITDA of just over $1 million. During the quarter, we also maintained our strong cash and working capital positions while continuing to add to and upgrade Turk Mine infrastructure and development as we move towards our mid and longer term production targets."

About New Dawn ...

New Dawn is a Zimbabwe-focused junior gold company currently expanding gold production at its Turk and Angelus Mines, exploring for gold, and identifying and pursuing other development projects, as well as actively assessing other value accretive acquisition opportunities in Zimbabwe.

New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. New Dawn owns the property outright on which these mines are located.

Currently, a production facility capable of processing up to 580 tonnes per day or 17,500 tonnes per month is in place and operating. The Company maintains a highly experienced work force at Turk Mine of over 950 people.

Additionally, the Company has a portfolio of exploration properties in Zimbabwe that includes the Consolidated Bubi Gold Fields, and Consolidated Shurugwi Gold Fields properties.

Further information on New Dawn's gold reserves and resources can be obtained at the Company's website at www.newdawnmining.com or in the Company's filings on SEDAR at www.sedar.com.

The TSX has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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.

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 Annual Information Form - 2009. 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 press release 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 E-mail us at: info@newdawnmining.com

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