VANCOUVER, Oct. 30, 2014 /PRNewswire/ - Nevsun
Resources Ltd. (TSX:NSU / NYSE MKT:NSU) (Nevsun or the Company) is
pleased to report its financial and operating results for the three
and nine months ended September 30,
2014. Unless otherwise noted, with the exception of
earnings per share and realized copper price and cost per pound
figures, all financial results are in millions of US dollars.
Third quarter 2014 highlights
- Earnings per share of $0.13
- Cash generated from operating activities of $84 million
- Working capital of $519 million,
including $380 million of cash and
$113 million in current
receivables
- Produced 56.4 million pounds of copper in the quarter (19%
increase over Q2)
- Achieved industry lowest quartile C1 cash costs of $1.07 per pound
- Announced successful drilling results confirming a VMS district
in and around Bisha
- Zinc plant expansion on track for 2016 start-up
- Achieved a safety milestone of over three years without a lost
time injury
- Paid peer leading annualized dividend of $0.14 per share (approximately 29% of
earnings)
|
|
|
|
|
|
|
|
Q3 2014
|
Q2 2014
|
Q1 2014
|
YTD 2014
|
Revenues
|
$
|
147.9
|
$
|
169.2
|
$
|
99.2
|
$
|
416.3
|
Operating
income
|
|
78.1
|
|
94.9
|
|
52.0
|
|
225.0
|
Net income
|
|
44.6
|
|
53.7
|
|
28.2
|
|
126.5
|
Net income
attributable to Nevsun shareholders
|
|
25.5
|
|
30.5
|
|
15.5
|
|
71.5
|
Basic earnings per
share attributable to Nevsun shareholders
|
|
0.13
|
|
0.15
|
|
0.08
|
|
0.36
|
|
|
|
|
|
|
|
|
|
Working
capital
|
|
519.0
|
|
497.8
|
|
462.2
|
|
519.0
|
|
|
|
|
|
|
|
|
|
Copper price
realized, per payable pound sold
|
|
2.98
|
|
3.21
|
|
3.01
|
|
3.08
|
C1 cash cost per
payable pound sold (1)
|
$
|
1.07
|
$
|
1.05
|
$
|
0.98
|
$
|
1.04
|
(1)
|
C1 cash cost is a
non-GAAP measure and includes mine site operating and general and
administrative costs, freight, treatment and refining charges, less
by-product credits. Royalties are excluded from the calculation of
the C1 cash cost. Non-GAAP measures do not have a
standardized meaning prescribed by IFRS and may not be comparable
to similar measures presented by other companies. Refer to Non-GAAP
Performance Measure in the Q3 MD&A for a reconciliation of IFRS
measures to C1 cash cost.
|
"The team has delivered another highly profitable quarter,"
stated Cliff Davis, President and
CEO of Nevsun. "Nevsun earned $44.6
million during Q3 2014 ($25.5
million attributable to Nevsun shareholders) or $0.13 per share. These results leave the
Company in an even stronger position to execute its growth
objectives."
Operations Review
Key operating
information – Bisha Mine:
|
|
|
|
Q3 2014
|
Q2 2014
|
Q1 2014
|
YTD 2014
|
Ore mined,
tonnes(1)(2)(3)
|
481,000
|
697,000
|
487,000
|
1,665,000
|
Waste mined,
tonnes
|
2,707,000
|
2,719,000
|
3,471,000
|
8,897,000
|
Strip ratio, (using
tonnes)
|
5.6
|
3.9
|
7.1
|
5.3
|
|
|
|
|
|
|
Processing –
copper:
|
|
|
|
|
Ore milled,
tonnes
|
477,000
|
386,000
|
353,000
|
1,216,000
|
Copper feed grade,
%
|
6.3
|
6.6
|
6.1
|
6.3
|
Recovery, % of
copper
|
85.6
|
84.6
|
83.5
|
84.7
|
Copper concentrate
grade, %
|
27.2
|
27.1
|
28.8
|
27.6
|
Copper in concentrate
produced, millions of pounds
|
56.4
|
47.4
|
39.7
|
143.5
|
Copper in concentrate
produced, tonnes
|
25,600
|
21,500
|
18,000
|
65,100
|
Payable copper sold,
millions of pounds(4)
|
49.8
|
51.5
|
34.0
|
135.3
|
Payable copper sold,
tonnes(4)
|
22,600
|
23,400
|
15,400
|
61,400
|
Copper price realized
per payable pound sold
|
$
|
2.98
|
$
|
3.21
|
$
|
3.01
|
$
|
3.08
|
C1 cash cost per
payable pound sold
|
$
|
1.07
|
$
|
1.05
|
$
|
0.98
|
$
|
1.04
|
|
|
(1)
|
Ore tonnes mined for
the three month period ended March 31, 2014 included 91,000 tonnes
of oxide ore including pyrite sand, 382,000 tonnes of supergene ore
and 14,000 tonnes of primary ore.
|
(2)
|
Ore tonnes mined for
the three month period ended June 30, 2014 included 126,000 tonnes
of oxide ore including pyrite sand, 531,000 tonnes of supergene ore
and 40,000 tonnes of primary ore.
|
(3)
|
Ore tonnes mined for
the three month period ended September 30, 2014 included 1,000
tonnes of oxide ore including pyrite sand, 426,000 tonnes of
supergene ore and 54,000 tonnes of primary ore.
|
(4)
|
Q1 2014 included 4.5
million pounds or 2,000 tonnes (Q4 2013 – 30.6 million pounds or
13,900 tonnes) of pre-commercial production. Receipts from
pre-commercial production sales were credited against mineral
property, plant and equipment, net of cost of sales.
|
|
|
Cliff Davis commented, "We are
pleased to report strong performance by the Bisha plant and in the
trucking logistics as the Bisha ore body continues to deliver
continued high grade copper feed. Monetizing our working
capital including accounts receivable from our customers, the
amount due from our partner and the copper concentrate in finished
goods will be our short term objective so as to have a strong
finish to the year. In the longer term, another major focus
is to ensure our zinc plant is commissioned on time and on budget
so as to capitalize on expected strong zinc prices."
Conference call details
The Company will hold a conference call on Friday, October 31, 2014, at 8:00AM Vancouver
/ 11:00AM Toronto, New
York / 4:00 PM London, to
discuss the Q3 2014 results. Please call in at least five
minutes prior to the conference call start time to ensure prompt
access to the conference. Dial in details are as follows:
North America: 1
888-390-0546 / +1 416-764-8688 / +1 778-383-7413
UK: 0800 652 2435 (toll free)
Other International: +1 416-764-8688 / +1 778-383-7413
The conference call will be available for replay until
November 8, 2014, by calling 1
888-390-0541 / +1 416-764-8677 and entering passcode 602544.
About Nevsun Resources Ltd.
Nevsun Resources Ltd. is a Vancouver-based mining company with an
operating mine in Eritrea.
Nevsun's 60%- owned Bisha Mine commenced commercial copper
concentrate production in December
2013 and ranks as one of the highest grade open pit copper
mines in the world. Nevsun has a strong balance sheet and future
cash flows to grow shareholder value through exploration at Bisha
and acquisition of additional mining assets.
Forward Looking Statements
The above contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and applicable Canadian securities legislation
concerning anticipated developments in the Company's continuing and
future operations in Eritrea and
the adequacy of the Company's financial resources and financial
projections. Forward-looking statements include, but are not
limited to, statements concerning or the assumptions related to
estimates of capital and operating costs, the timing, nature and
extent of future copper and gold production, expanding exploration
licenses, the estimation of mineral reserves and resources,
methodologies and models used to prepare resource and reserve
estimates, the realization of mineral reserve estimates, the
conversion of mineral properties to reserves and resources, the
potential to expand resources, reserves and mine life, future
exploration budgets, plans, targets and work programs, capital
expenditures and objectives, anticipated timing of grant of
permits, mining and development plans and activities, construction
and production targets and timetables, grades, processing rates,
life of mine, net cash flows, metal prices, exchange rates,
reclamation costs, results of drill programs, dividend plans and
policy, litigation matters, integration or expansion of operations,
requirements for additional capital, government regulation of
mining operations, environmental risks, political risks and
uncertainties, unanticipated reclamation expenses, and other events
or conditions that may occur in the future. Forward-looking
statements are frequently, but not always, identified by words such
as "expects," "anticipates," "believes," "intends," "estimates,"
"potential," "possible," "budget" and similar expressions, or
statements that events, conditions or results "will," "may,"
"could" or "should" occur or be achieved. Information concerning
the interpretation of drill results and mineral resource and
reserve estimates also may be deemed to be forward-looking
statements, as such information constitutes a prediction of what
mineralization might be found to be present if and when a project
is actually developed, and in the case of mineral reserves, such
statements reflect the conclusion based on certain assumptions that
the mineral deposit can be economically exploited.
Forward-looking statements are statements about the future
and are inherently uncertain, and actual achievements of the
Company or other future events or conditions may differ materially
from those reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. The Company's forward-looking statements are based on the
beliefs, expectations and opinions of management on the date the
statements are made and the Company assumes no obligation to update
such forward-looking statements in the future, except as required
by law. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. For the
reasons set forth above, investors should not place undue reliance
on forward-looking statements. Please see the Company's MD&A
for the year ended December 31, 2013,
for a more complete discussion of the risk factors associated with
our business.
NEVSUN RESOURCES LTD.
"Cliff T. Davis"
Cliff T. Davis
President & Chief Executive Officer
SOURCE Nevsun Resources Ltd.