Nord Resources Reports Profit for 2008 Second Quarter



    TUCSON, AZ, Aug. 14 /CNW/ - Nord Resources Corporation (TSX: NRD/OTC BB:
NRDS.OB), which is reactivating copper mining at the Johnson Camp Mine in
Arizona, today announced its financial results for the period ended June 30,
2008. The condensed consolidated unaudited financial statements were prepared
in accordance with U.S. generally accepted accounting principles and all
currency amounts are in U.S. dollars.
    "In the second quarter, we more than doubled our sales of copper cathodes
reflecting the fact that this was our first full quarter of production from
leaching the existing ore heaps at the Johnson Camp Mine, after achieving
commercial production on February 1," said John Perry, President and Chief
Executive Officer.

    Second Quarter Profitable as Production Doubles from First Quarter

    Second-quarter 2008 revenues were $3.1 million, compared with none in the
2007 period and more than double the $1.5 million of the first quarter of
2008. The sales growth was the result of increased production of copper
cathodes. Nord sold 836,198 pounds of copper cathode in the second quarter of
2008 compared to 421,905 pounds in the first quarter. The Company realized an
additional $209,907 (credited to development costs) from the sale of 58,723
pounds of copper cathodes produced during the first quarter of 2008, prior to
the commencement of commercial production on February 1, 2008. Nord did not
have any revenue in 2007 when the Johnson Camp Mine was on a care and
maintenance program.
    First-half 2008 revenues were $4.6 million (none in 2007) from the sale
of 1,258,103 pounds of copper. Cost of sales amounted to $2.0 million in the
2008 second quarter and totaled $3.0 million for the six months ended June 30,
2008. Operating costs incurred prior to beginning commercial production were
capitalized as mine development costs, net of the realized value of the copper
produced during that period.
    General and administrative (G&A) expenses were $0.8 million for the 2008
second quarter, compared with $1.5 million a year earlier. Included in the
2007 quarter, is $0.5 million in expenses for drilling at another property.
For the first half of 2008, G&A expenses amounted to $2.0 million, compared
with $2.4 million in the first six months of 2007. In 2007, the Company
incurred $0.6 million of drilling expenses at another property. The decrease
between year to year G&A expenses was partially offset by a $194,326 increase
in expenses related to the listing of the Company's shares on the Toronto
Stock Exchange in January 2008, and the related registration of certain shares
under the Securities Act of 1933, as amended.
    Income from operations for the second-quarter 2008 amounted to 
$0.2 million, compared with a loss in the 2007 quarter of $1.5 million. For
the first half of 2008, the Company had a loss from operations of 
$0.5 million, compared with a loss of $2.5 million in the 2007 period.
    Net income for the second-quarter 2008 was $0.1 million (income of
$0.00 per basic and diluted share), compared with a net loss of $1.5 million
(loss of $0.04 per basic and diluted share) in the 2007 period. The weighted
average number of common shares outstanding was 67,081,882 in the 2008 quarter
(69,985,450 diluted), compared with 34,434,630 (basic and diluted) in the 2007
period. For the first half of 2008, the Company's net loss was $0.6 million
($0.01 per basic and diluted share), compared with a net loss in the first six
months of 2007 of $1.5 million ($0.04 per basic and diluted share).
    The Company currently estimates the capital cost to reactivate the
Johnson Camp Mine to be approximately $34 million, of which the Company has
spent $21.4 million as of June 30, 2008. As of June 30, 2008, the Company had
$13 million remaining undrawn under the $25 million secured term-loan credit
facility arranged in June 2007 with Nedbank Limited. Based on its current
assessments, outlook and forecasts with respect to the Johnson Camp Mine, the
Company believes that it has access to sufficient funds to meet its estimated
capital requirements for the reactivation plan of the Mine.

    
    Neither the TSX nor any regulatory authority accepts responsibility for
    the adequacy or accuracy of this release.
    

    About Nord Resources

    Nord Resources Corporation explores, develops, and operates mineral
properties. The company's primary asset is the Johnson Camp Mine, located
approximately 65 miles east of Tucson, Arizona, which it is reactivating to
produce copper. The company commenced commercial copper production from
residual leaching of the existing ore heaps on February 1, 2008 and expects to
begin producing new ore at the mine later this year.

    Forward-Looking Statements

    This news release includes certain statements that may be deemed
"forward-looking". All statements in this release, other than those of
historical facts, may be considered forward-looking statements, including
those concerning Nord's expectations with respect to commencement of copper
production from newly mined ore and copper production targets. Forward-looking
statements or information are subject to a variety of risks and uncertainties
that could cause actual events or results to differ from those reflected in
the forward-looking statements or information, including, without limitation,
the interpretation of drill results and the estimation of mineral resources
and reserves, the geology, grade, and continuity of mineral deposits, the
possibility that mining results or metal recoveries will not be consistent
with the company's expectations, accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties with or
interruptions in production and operations, the potential for delays in
exploration or development activities or the completion of feasibility
studies, the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price fluctuations,
failure to obtain an air quality permit and other necessary permits for the
Johnson Camp Mine on a timely basis, and regulatory restrictions, including
environmental regulatory restrictions and liability. Investors are cautioned
that any such statements are not guarantees of future performance and that
actual results or developments may differ materially from those projected in
the forward-looking statements. In addition, Nord's business and operations
are subject to the risks set forth in Nord's most recent Form 10-KSB, Form
10-Q, and other SEC filings which are available through EDGAR at www.sec.gov,
and in Nord's prospectus and other filings with the British Columbia and
Ontario Securities Commissions, which are available through SEDAR at
www.sedar.com. These are among the primary risks we foresee at the present
time. Nord assumes no obligation to update the forward-looking statements
except as may be required by law.

    
                  NORD RE

SOURCES CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2008 and December 31, 2007 ASSETS June 30, 2008 December 31, 2007 ----------------- ------------------- (Unaudited) Current Assets: Cash and cash equivalents $ 545,832 $ 3,368,910 Restricted cash 3,000,000 - Accounts receivable 484,891 144,012 Inventories 316,187 - Prepaid expenses and other 92,626 68,012 ----------------- ------------------- Total Current Assets 4,439,536 3,580,934 ----------------- ------------------- Property and Equipment, at cost: Property and equipment 4,765,629 4,161,993 Less accumulated depreciation and amortization (1,562,813) (1,460,611) ----------------- ------------------- 3,202,816 2,701,382 Construction in progress 20,594,249 10,795,491 ----------------- ------------------- Net Property and Equipment 23,797,065 13,496,873 ----------------- ------------------- Other Assets: Restricted cash and marketable securities 686,476 3,686,476 Debt issuance costs, net of accumulated amortization 997,135 1,117,021 ----------------- ------------------- Total Other Assets 1,683,611 4,803,497 ----------------- ------------------- Total Assets $ 29,920,212 $ 21,881,304 ----------------- ------------------- ----------------- ------------------- NORD RE

SOURCES CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2008 and December 31, 2007 (Continued) LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) June 30, 2008 December 31, 2007 ----------------- ------------------- (Unaudited) Current Liabilities: Accounts payable $ 1,884,011 $ 1,322,459 Accrued expenses 889,173 1,225,686 Current portion of accrued interest 48,243 - Current maturities of long-term debt 1,600,000 312,500 Current maturities of derivative contracts 4,233,783 - Current maturity of capital lease obligation 15,808 9,375 ----------------- ------------------- Total Current Liabilities 8,671,018 2,870,020 ----------------- ------------------- Long-Term Liabilities: Capital lease obligation, less current maturity 53,240 - Derivative contracts 14,800,975 9,183,428 Long-term debt (less current maturities) 10,400,000 4,687,500 Long-term accrued interest (less current portion) 313,581 - Accrued reclamation costs 137,699 131,141 Other 58,976 61,863 ----------------- ------------------- Total Long-Term Liabilities 25,764,471 14,063,932 ----------------- ------------------- Total Liabilities 34,435,489 16,933,952 ----------------- ------------------- Commitments and contingencies Stockholders' Equity (Deficit): Common stock: $.01 par value, 100,000,000 shares authorized, 68,083,635 and 66,659,224 shares issued and outstanding as of June 30, 2008 and December 31, 2007, respectively 680,836 666,592 Additional paid-in capital 109,378,518 108,439,030 Accumulated deficit (95,539,873) (94,974,842) Accumulated other comprehensive loss (19,034,758) (9,183,428) ----------------- ------------------- Total Stockholders' Equity (Deficit) (4,515,277) 4,947,352 ----------------- ------------------- Total Liabilities and Stockholders' Equity (Deficit) $ 29,920,212 $ 21,881,304 ----------------- ------------------- ----------------- ------------------- NORD RE

SOURCES CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (Unaudited) 2008 2007 ----------------- ------------------- Revenues $ 4,655,546 $ - Expenses: Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) 3,001,285 - General and administrative expenses 2,032,545 2,430,614 Depreciation, depletion and amortization 147,865 41,673 ----------------- ------------------- Loss from operations (526,149) (2,472,287) ----------------- ------------------- Other income (expense): Interest expense (271,578) (477,985) Miscellaneous income 232,696 1,434,285 ----------------- ------------------- Total other income (expense) (38,882) 956,300 ----------------- ------------------- Loss before income taxes (565,031) (1,515,987) Provision for income taxes - - ----------------- ------------------- Net loss $ (565,031) $ (1,515,987) ----------------- ------------------- ----------------- ------------------- Net Loss Per Basic and Diluted Share of Common Stock: Weighted Average Number of Common Shares Outstanding 66,871,932 34,323,544 Net loss per share of common stock $ (0.01) $ (0.04) ----------------- ------------------- ----------------- ------------------- NORD RE

SOURCES CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007 (Unaudited) 2008 2007 ----------------- ------------------- Revenues $ 3,115,392 $ - Expenses: Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) 2,031,514 - General and administrative expenses 799,290 1,472,713 Depreciation, depletion and amortization 94,009 20,836 ----------------- ------------------- Income (loss) from operations 190,579 (1,493,549) ----------------- ------------------- Other income (expense): Interest expense (196,992) (226,804) Miscellaneous income 115,929 259,849 ----------------- ------------------- Total other income (expense) (81,063) 33,045 ----------------- ------------------- Income (loss) before income taxes 109,516 (1,460,504) Provision for income taxes - - ----------------- ------------------- Net income (loss) $ 109,516 $ (1,460,504) ----------------- ------------------- ----------------- ------------------- Net loss per basic and diluted share of common stock: Weighted average number of basic common shares outstanding 67,081,882 34,434,630 Basic earnings (loss) per share of common stock $ 0.00 $ (0.04) Weighted average number of diluted common shares outstanding 69,985,450 34,434,630 Diluted earnings (loss) per share of common stock $ 0.00 $ (0.04) NORD RE

SOURCES CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (Unaudited) 2008 2007 ----------------- ------------------- Cash Flows From Operating Activities: Net loss $ (565,031) $ (1,515,987) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, depletion and amortization 147,865 41,673 Accretion expense on accrued reclamation costs 6,558 9,106 Amortization of debt issuance costs 119,886 100,000 Accretion of discount on debt - 85,846 Issuance of stock options for services rendered 300,555 372,594 Issuance of stock and deferred stock units for services rendered 65,000 141,680 Accretion of warrant modification 125,137 - Changes in assets and liabilities: Accounts receivable (340,879) (18,542) Inventory (314,244) - Other assets (24,614) (13,916) Accounts payable 357,603 (448,882) Accrued expenses (339,448) (2,528,004) ----------------- ------------------- Net Cash Used In Operating Activities (461,612) (3,774,432) ----------------- ------------------- Cash Flows From Investing Activities: Capital expenditures (520,891) (19,839) Construction in progress (9,232,937) - ----------------- ------------------- Net Cash Provided (Used) By Investing Activities (9,753,828) (19,839) ----------------- ------------------- Cash Flows From Financing Activities: Proceeds from issuance of notes payable 7,000,000 25,000 Debt issuance costs - (50,109) Principal payments on capital leases (19,368) (9,375) Principle payments on notes payable - (5,668,313) Proceeds from issuance of special warrants - 23,000,025 Offering costs paid in connection with special warrant financing - (1,718,349) Proceeds from exercise of warrants 412,000 52,500 ----------------- ------------------- Net Cash Provided By Financing Activities 7,392,362 15,631,379 ----------------- ------------------- Net Increase in Cash and Cash Equivalents (2,823,078) 11,837,108 Cash and Cash Equivalents at Beginning of Period 3,368,910 1,007,835 ----------------- ------------------- Cash and Cash Equivalents at End of Period $ 545,832 $ 12,844,943 ----------------- ------------------- ----------------- ------------------- Supplemental Disclosure of Cash Flow Information: Cash paid during the period for: Interest $ 20,420 $ 287,149 Income taxes - - Supplemental Disclosure of Non-cash Investing and Financing Activities: Common stock issued for purchase of property $ 51,040 $ 36,665 Stock options issued in connection with special warrant financing - 513,436 Warrants issued in connection with debt facilities - 85,846 Common stock issued for settlement of accounts payable - 163,000 Debt issuance costs paid through a note payable - 75,000 Common stock issued in exchange for deferred stock units 444 901 Mark to market of cash flow hedges (9,851,330) - Capitalized interest 361,872 - Debt issuance costs in accrued expense - 450,000 Common stock issued upon conversion of related party convertible notes - 132,680 Construction in progress financed by accounts payable 1,146,721 - Acquisition of equipment under lease 79,310 -

For further information:

For further information: John Perry, President and Chief Executive
Officer, Nord Resources Corporation, (520) 292-0266, www.nordresources.com;
Investor and Media Relations, Richard Wertheim, Wertheim + Company Inc., (416)
594-1600, or (416) 518-8479 (cell), or by email at wertheim@wertheim.ca

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Nord Resources Corporation

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