New Dawn Mining Corp. Reports Financial Results For the Year Ended September
30, 2009

    
    Q4 Financial Highlights (All amounts are in US dollars)
    -------------------------------------------------------

    -   Net income of $0.02 per basic share or $640,250 (includes impairment
        charge of $828,218, primarily with respect to the Blue Dot Project in
        South Africa, and a one-time gain of $1,066,955 on the RBZ Bonds)

    -   Excluding one-time items, basic earnings per share was $0.01 per
        share or $401,513

    -   $2,779,692 of revenues from the sale of 2,907 ounces of gold at an
        average sale price of $956 per ounce

    -   Cash costs of $508 per ounce during the quarter ended September 30,
        2009 (cash costs are a non-GAAP measure)

    Year End Financial Highlights (All amounts are in US dollars)
    -------------------------------------------------------------

    -   Loss per share of $0.13 or $3,737,594 (includes impairment charge of
        $3,387,478 or $0.12 per share, primarily with respect to the Blue Dot
        Project in South Africa, and one-time gain of $1,066,955 or $0.04 per
        share on the RBZ Bonds)

    -   $5,644,977 of revenues from seven months of production from the sale
        of 6,029 ounces of gold at an average sale price of $936 per ounce

    -   Cash costs of $622 per ounce during the year ended September 30, 2009
        (cash costs are a non-GAAP measure)

    -   100% of gold sales received and collected in US dollars

    -   Company re-affirms its production target of 15,500 ounces of gold for
        fiscal year 2009-2010

    -   September 30, 2009 year-end working capital of $6,587,105
    

TORONTO, Dec. 18 /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 fiscal year ended September 30, 2009 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 Q4 FINANCIAL RESULTS

The selected unaudited quarterly financial information is set out below.

    
    -------------------------------------------------------------------------
    Fiscal 2009                              Quarters Ended
    -------------------------------------------------------------------------
                      September 30,      June 30,     March 31,  December 31,
                              2009          2009          2009          2008
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Operations
    -------------------------------------------------------------------------
    Revenue           $  2,779,692  $  2,865,285  $          -  $          -
    -------------------------------------------------------------------------
    Interest income              -         3,175         2,697         8,598
    -------------------------------------------------------------------------
    Net income (loss)
     for the period        640,250    (2,054,054)   (1,251,025)   (1,072,765)
    -------------------------------------------------------------------------
    Basic and diluted
     income (loss)
     per common share         0.02         (0.07)        (0.04)        (0.04)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Balance sheet
    -------------------------------------------------------------------------
    Total assets      $ 19,758,732  $ 17,996,425  $ 19,592,561  $ 20,386,530
    -------------------------------------------------------------------------
    Total liabilities    5,646,849     5,086,786     4,650,498     4,215,072
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash dividends
     per share                 Nil           Nil           Nil           Nil
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Other measures
    -------------------------------------------------------------------------
    Quantity of gold
     produced (oz)           3,064         2,931           637             -
    -------------------------------------------------------------------------
    Quantity of gold
     sold (oz)               2,907         3,122             -             -
    -------------------------------------------------------------------------
    Intercompany loan
     repayments from
     Zimbabwe         $    250,000  $    145,105  $        Nil  $        Nil
    -------------------------------------------------------------------------
    Cash costs per
     oz(1)            $        508  $        503  $        500           n/a
    -------------------------------------------------------------------------
    Adjusted cash
     costs per oz(1)  $        508  $        503  $        500           n/a
    -------------------------------------------------------------------------
    (1) Cash costs per ounce and adjusted cash costs per ounce are non-GAAP
        measures as more fully described in the discussion at the end of
        Management's Discussion and Analysis entitled "Non-GAAP Measures".
    

Q4 Quarter Fiscal 2008/2009 (Three Months Ended September 30, 2009)

Q4 REVENUE

With continuing improvement in the operating environment in Zimbabwe which began in January 2009, the Company moved to full production at its Turk Mine, effective May 4, 2009, and increased production throughout the remainder of the year ended September 30, 2009.

During the quarter ended September 30, 2009, the Company's Turk Mine in Zimbabwe produced 3,064 ounces of gold and sold 2,907 ounces of gold, generating sales of $2,779,692. All gold sales were received in US Dollars.

The Company received an average of approximately $956 per ounce for its gold sold during the quarter ended September 30, 2009.

During 2009, New Dawn met its milestone of maintaining a steady production rate at the Turk Mine of 1,200 ounces of gold per month or production of 14,000 to 15,000 ounces of gold on an annualized basis.

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.

Subsequent to the quarter ended September 30, 2009, processing capacity at the Turk Mine was expanded to 580 tonnes per day or 17,500 tonnes per month.

Q4 OPERATING EXPENSES

Mine operating expenses, excluding amortization, for the quarter ended September 30, 2009 are comparable with those costs reported for each of the quarters ended December 31, 2007, March 31, 2008 and June 30, 2008 of the previous fiscal year when production was at similar levels. However, the imposition of a 3% royalty effective August 1, 2009 increased operating costs by $55,403 for the quarter ended September 30, 2009.

The average cash cost for gold produced at the Turk Mine during the quarter ended September 30, 2009 was US$508 per ounce of gold produced.

Q4 EARNINGS

Net income for the quarter ended September 30, 2009 was $640,250 or $0.02 per share, which included an impairment charge of $828,218 or $0.03 per share, primarily with respect to the Blue Dot Project in South Africa, and a gain on the revaluation of the Reserve Bank of Zimbabwe Bonds to fair value of $1,066,955 or $0.04 per share. The Bonds were sold in October 2009 to a local financial institution.

Without these one-time items, basic earnings per share for the quarter ended September 30, 2009 would have been $0.01 per share.

Q4 CASH RESOURCES and LIQUIDITY

At September 30, 2009, cash and cash equivalents were US$2,740,117, a decrease of US$334,778 from June 30, 2009. The Company has working capital of US$6,587,105 at September 30, 2009 and 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 generating positive cash flow, are sufficient to fund the Company's planned exploration and development activities and mine infrastructure projects through 2010 and beyond.

HIGHLIGHTS FOF THE YEAR END SEPTEMBER 30, 2009

The following table sets forth selected consolidated financial information for the Company for the fiscal years ended September 30, 2009, 2008 and 2007, prepared in accordance with Canadian generally accepted accounting principles. This information has been summarized from the Company's audited consolidated financial statements for the fiscal years ended September 30, 2009, 2008 and 2007. This selected financial information should be read in conjunction with the Company's financial statements, including the notes thereto.

    
    -------------------------------------------------------------------------
                       Fiscal Years Ended September 30,
    -------------------------------------------------------------------------
                                            2009          2008          2007
    -------------------------------------------------------------------------
    Operations
    -------------------------------------------------------------------------
      Revenue                       $  5,644,977  $  7,480,925  $  9,023,166
    -------------------------------------------------------------------------
      Interest income                     14,470       102,082       272,388
    -------------------------------------------------------------------------
      Net income (loss) for the year  (3,737,402)   (2,471,066)    1,265,389
    -------------------------------------------------------------------------
      Basic and diluted income
       (loss) per common share             (0.13)        (0.09)         0.05
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Balance sheet
    -------------------------------------------------------------------------
      Total assets                  $ 19,758,732  $ 21,383,249  $ 18,599,593
    -------------------------------------------------------------------------
      Total liabilities                5,646,849     4,160,911     4,094,528
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash dividends per share                 Nil           Nil           Nil
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Other measures
    -------------------------------------------------------------------------
      Quantity of gold produced (oz)       6,967         8,651        13,784
    -------------------------------------------------------------------------
      Quantity of gold sold (oz)           6,029         8,651        13,784
    -------------------------------------------------------------------------
      Intercompany loan repayments
       from Zimbabwe                $    395,105  $    150,000  $    950,000
    -------------------------------------------------------------------------
      Cash costs per oz(1)                   622           641           469
    -------------------------------------------------------------------------
      Adjusted cash costs per oz(1)          622           632           342
    -------------------------------------------------------------------------
    (1) Because the Turk Mine was not in normal production mode for
        approximately the first half of the 2009 fiscal year, gold was only
        produced and sold during the second half of the 2009 fiscal year.
        Accordingly, revenue and quantity of gold produced for 2009
        represents operating activities for the second half of the 2009
        fiscal year. However, mining and processing costs include those costs
        incurred during the care and maintenance phase in the first half of
        the 2009 fiscal year. As a result, cash costs per ounce for the
        fiscal year ended September 30, 2009 are not representative of
        expected future operating costs to be incurred on a sustained basis.

        Cash costs per ounce and adjusted cash costs per ounce are non-GAAP
        measures as more fully described in the discussion at the end of
        Management's Discussion and Analysis entitled "Non-GAAP Measures".
    

REVENUE

For the year ended September 30, 2009, the Company's Turk Mine in Zimbabwe produced 6,967 ounces of gold and the Company sold 6,029 ounces of gold, generating revenue of $5,644,977. All gold sales were received in US Dollars.

During the period from October 2008 to March 2009, the Company had no gold sales, and there was no gold production from October 2008 until production resumed in late March 2009.

Gold in inventory as at September 30, 2009 was 950 ounces at a cost of $465,414, which has been included on the balance sheet as part of inventories.

The Company received an average rate of approximately $936 per ounces for gold sold during the 2009 fiscal year.

OPERATING EXPENSES

Operating expenses during the year varied as there was no production from the Turk Mine from October 2008 until resumed in late March 2009. During the period when the Turk Mine was not producing gold, the expenses of maintaining the mine in a state to allow a quick resumption of operations were approximately $155,000 per month, an amount much less than the cost of operating in production mode.

Mine operating expenses for the period commencing in late March 2009 through September 30, 2009, excluding amortization, are comparable with those costs previously reported when production was at similar levels. However, the imposition of a 3% royalty effective August 1, 2009 increased operating costs by $55,403 for the year ended September 20, 2009.

The average cash cost for gold produced at the Turk Mine during the year ended September 30, 2009 was US$622 per ounce of gold produced.

Corporate and administrative overhead during the year increased primarily as a result of increased investor relations costs and general public company overhead costs. It is the Company's intention to continue with an active investor relations initiative and to continuously evaluate its performance and, where necessary, modify the elements comprising the program.

EARNINGS/LOSS

Net loss for the year ended September 30, 2009 was $3,737,594 or $0.13 per share, which included an impairment charge of $3,387,478 or $0.12 per share, primarily with respect to the Blue Dot Project in South Africa, and a gain on the revaluation of the Reserve Bank of Zimbabwe Bonds to fair value of $1,066,955 or $0.04 cents per share.

Without these one time items, the loss would have been $1,417,071 or $0.05 per share.

CONCLUDING COMMENTS

"We began the 2009 fiscal year with the Turk Mine on care and maintenance and ended the year at record gold production levels," commented Ian R. Saunders, President and CEO. "As a result of the new monetary policies implemented in Zimbabwe in January 2009, we have seen significant positive economic and political changes in Zimbabwe over the past 10 months. As such, we were able to resume production at Turk Mine in March 2009, and during the remainder of the year we have focused our efforts on increasing our production on a sustainable basis. We have continued to pursue value accretive transactions in the region and we are currently evaluating a number of potential opportunities. I would like to thank the Board of Directors and the entire New Dawn team for making what began as a difficult year, end with great success."

OVERVIEW

The Company is a junior gold company engaged in the production of gold and related activities, including exploration, development, mining and processing, in southern Africa. The Company's principal assets are the actively producing Turk Mine in Zimbabwe, the advanced exploration project Angelus Mine in Zimbabwe, and a portfolio of exploration properties in Zimbabwe.

New Dawn has positioned itself as a Zimbabwe-focused gold company that is concentrating its efforts on expanding production at the Turk Mine and advancing its exploration properties by identifying and drilling defined targets, while also assessing value accretive acquisitions in the region. These items are more specifically described below.

1. Production Expansion at Turk Mine:

New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that has 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.

A production facility capable of processing up to 580 tonnes per day or 17,500 tonnes per month is currently in place and operating. The production facility is capable of easily being expanded to 580 tonnes per day or 17,500 tonnes per month. The Company maintains a highly experienced work force at Turk Mine of over 800 people.

At New Dawn's Turk and Angelus Mines, the most recent NI 43-101 report documented an aggregate of 916,700 ounces of gold resource grading between 3.9 - 4.9 g/t, with an additional inferred mineral resources of 331,700 ounces of gold grading 5.16 g/t. Reserves and Resources are based upon a 2.45 g/t cut-off and US$875/oz gold price at the Turk and Angelus Mines.

An updated NI 43-101 compliant Reserve and Resource estimate for the Turk and Angelus Mine complex is expected to be published in early 2010.

The Turk Mine and the Angelus Mines are contained within a large contiguous block of claims, with a total area of 2,171 hectares. The Company also holds an additional 357 hectares of other claims within 10 kilometers of the Turk Mine.

Moving forward, New Dawn will be concentrating on increasing production at Turk Mine and realizing cost efficiencies to reduce overall cash costs where ever possible.

2. Exploration:

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

3. Consolidation:

New Dawn continues to position itself as the natural in-country consolidator of gold mining properties and companies in Zimbabwe. New Dawn is currently assessing value accretive opportunities in Zimbabwe and the surrounding region, including advanced stage exploration properties, as well as other gold mining companies with production and resources.

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, 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 2009 Annual Information Form. 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 Email us at: info@newdawnmining.com

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