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
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
Q4 REVENUE
With continuing improvement in the operating environment in
During the quarter ended
The Company received an average of approximately
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
Q4 OPERATING EXPENSES
Mine operating expenses, excluding amortization, for the quarter ended
The average cash cost for gold produced at the Turk Mine during the quarter ended
Q4 EARNINGS
Net income for the quarter ended
Without these one-time items, basic earnings per share for the quarter ended
Q4 CASH RESOURCES and LIQUIDITY
At
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
The following table sets forth selected consolidated financial information for the Company for the fiscal years ended
------------------------------------------------------------------------- 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
During the period from
Gold in inventory as at
The Company received an average rate of approximately
OPERATING EXPENSES
Operating expenses during the year varied as there was no production from the Turk Mine from
Mine operating expenses for the period commencing in late
The average cash cost for gold produced at the Turk Mine during the year ended
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
Without these one time items, the loss would have been
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
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
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
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
3. Consolidation:
New Dawn continues to position itself as the natural in-country consolidator of gold mining properties and companies in
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: [email protected], 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: 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: [email protected]
Share this article