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Northern Vertex Reports Fiscal Results for Six Months Ended December 31, 2020

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Northern Vertex Reports Fiscal Results for Six Months Ended December 31, 2020

 

 

 

 

 

Northern Vertex Mining Corp. (TSX: NEE) a U.S.-focused gold producer with district-scale exploration potential in the Walker Lane Trend, is pleased to announce audited financial results for its new fiscal year end to December 31st. Results for the fiscal six months ended December 31, 2020 included revenue of $52.7 million, Adjusted EBITDA of $23.3m, and a positive working capital position of $10.9m. All figures are expressed in USD unless otherwise noted, non-IFRS metrics are described later in this press release.

 

Highlights for the Quarter ended December 31st

 

  • Revenue of $25.9 million
  • Adjusted EBITDA of $10.5 million
  • Net income of $11.7 million
  • Earnings from mine operations of $11.8 million before depreciation and depletion
  • Gold equivalent production of 12,401 ounces1
  • Gold production of 11,124 ounces
  • Cash cost of $894/oz, and Moss Mine AISC of $1,088/oz – including $190/oz in capital expenditures
  • Cash on hand of $8.3 million
1Gold equivalent is calculated at a 75:1 ratio

 

Highlights for the Stub Year ended December 31st (6 months)

 

  • Revenue Year of $52.7 million
  • Adjusted EBITDA of $23.3 million
  • Gold production of 24,207 ounces
  • Transformation of the Northern Vertex capital structure
    • Repaid $8.5 million of debt
    • Eliminated 25.1 million warrants

 

Michael G. Allen, President of Northern Vertex stated, “The Northern Vertex team continued to exceed expectations with numerous production records during the stub year ended December 31, 2020, including the completion of key capital projects such as the powerline connection, moving to a larger crush size, installation of a heap leach solution management system, and West pit pioneering. Through an ambitious exploration program that started in 2020, we see significant opportunity to strengthen our mine plan and expand resources. Northern Vertex will be providing updates on near-mine and infill drilling results in the coming months.”

 

 

CONSOLIDATED THREE AND SIX MONTHS ENDED December 31, 2020

 

Financial Results

 US$’000 (except per share amounts) Three Months Ended

December 31, 2020 

Six Months Ended

December 31, 2020

Revenue 25,910 52,739
Costs of sales (including depreciation and amortization) (16,218) (17,214)
Operating income (loss) 7,376 14,803
Net income (loss) 11,675 (7,108) (1)
Net income (loss) per share (basic) 0.05 (0.03)
(1) Includes a non-cash accounting derivative liability revaluation loss of $16,265 – tied to the convertible debentures ($186) due to an increase in the NEE share price, warrants ($2,282) due to an increase in the NEE share price, and silver stream embedded derivative ($13,791) due to an increase in silver price.  

 

 

 

Three Months Ended

December 31, 2020 

Six Months Ended

December 31, 2020

Cash generated from operating activities 2,866 13,608
Average realized gold price ($/oz) 1,898 1,892
Total Cash Costs ($/oz) 894 925
Moss Mine AISC ($/oz) (2) 1,088 1,207
(2) AISC for the three months ended December 31, 2020 included $190/oz in capital expenditures tied to the construction of the powerline, exploration and a heap leach pad expansion.

 

Operating results Three Months Ended

December 31, 2020 

Six Months Ended

December 31, 2020

Ore Tonnes Mined (t) 571,703 1,278,332
Ore Stacked (t) 626,518 1,310,224
Grade (g/t Au) 0.55 0.62
Gold Ounces Produced 11,124 24,207
Gold Ounces Sold 11,760 24,584

 

Quarter ended December 31, 2020 – Operations

 

During the three months ended December 31, 2020 a total of 571,703 ore tonnes were mined at a strip ratio of 2.68.  The proportion of total ore being sourced from the East pit continues to increase as operations transition out of the current phase of the Center pit, while pioneering in the West pit was completed.  The elevated strip ratio was partially a result of work to remove a slough in the south wall of the East pit.

 

During the three months ended December 31, 2020 mining operations included 626,518 tonnes of ore crushed at an average gold grade of 0.55g/t, resulting in production of 11,124 Au ounces and 95,804 Ag ounces.

 

Numerous important capital projects were completed during the Stub Year:

  1. Commissioned a 6.9 mile power line, resulting in the mine being switched over to grid power and costs dropping from 31 cents per kilowatt hour to 8 cents per kilowatt hour,
  2. Commissioned an Intermediate Leach System to accelerate gold recoveries from the heap leach pad,
  3. Completed the transition to a larger ore crush size,
  4. Completed 57,345 feet of infill and exploration drilling from May to December 31, 2020.

 

Qualified Person

The foregoing technical information contained in this news release has also been reviewed and verified by Mr. Joseph Bardswich, P.Eng., a Qualified Person (“QP”) for the purpose of National Instrument 43-101 (Disclosure Standards for Mineral Projects).

 

Full Condensed Interim Consolidated Financial Statements and the Management Discussion & Analysis can be found at www.sedar.com and the Company’s website at northernvertex.com.

 

Non-IFRS Performance Measures

 

The following tables represent the calculation of certain Non-IFRS Financial Measures as referenced in this news release.

 

Reconciliation to Cash Costs

 

Three Months Ended December

31, 2020 

Six Months Ended December

31, 2020

Gold ounces sold 11,760 24,584
Cash costs reconciliation
Cost of sales $          17,214 $         35,821
Less: Depreciation and depletion (3,109) (6,844)
Add: Refining and transportation 37 240
Less: Silver revenue (3,627) (6,466)
Cash costs 10,515 22,751
Cash costs per ounce of gold sold $              894 $            925

 

 

Reconciliation to All-In Sustaining Costs

 

Three Months Ended

December 31, 2020 

Six Months Ended

December 31, 2020

Gold ounces sold 11,760 24,584
AISC reconciliation
  Cash costs $           10,515 $         22,751
  Sustaining capital expenditures 2,231 6,767
  Accretion 46 162
12,792 29,680
Moss Mine AISC per ounce sold $           1,088 $           1,207

 

 

Reconciliation to Adjusted EBITDA

 

Three Months Ended

December 31, 2020 

Six Months Ended

December 31, 2020

Net profit (loss) 11,675 (7,108)
Depreciation and depletion 3,110 6,844
Finance costs (income) 5,334 6,725
Loss (gain) on derivative liabilities (10,014) 16,215
Share-based compensation 46 159
Foreign exchange (gain) loss 381 509
Adjusted EBITDA 10,532 23,344

 

About Northern Vertex Mining Corp.

 

Northern Vertex offers investors a rare combination of cash flow, production, top-tier management and exceptional exploration potential within two projects on the Walker Lane Gold Trend of western Nevada and Arizona. Management is executing a clear strategy that expands production and resources at the Moss Mine in Arizona while aggressively exploring the Hercules Project in Nevada.

 

Posted April 14, 2021

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