|By PR Newswire||
|March 12, 2014 05:26 PM EDT||
VANCOUVER, March 12, 2014 /PRNewswire/ - Full year 2013 highlights
- Exceeded 15 million hours without a lost time injury
- Completed the copper expansion project on-time and under budget
- Achieved commercial production of copper plant
- Produced 48 million pounds of copper in concentrate against guidance of 30 to 50 million pounds
- Produced 92,000 ounces of gold in doré plus 20,000 equivalent ounces in precious metals concentrate
- Revenues of $155.7 million, with average realized gold price per ounce of $1,471
- Net income of $29.3 million
- Increased annualized dividend by 40% to $0.14 per share
- Maintained strong balance sheet with approximately $420 million in working capital
Nevsun Resources Ltd. (TSX:NSU) (NYSE MKT:NSU) (Nevsun or the Company) is pleased to report its financial and operating results for the year ended December 31, 2013. Unless otherwise noted, with the exception of earnings per share and realized price per ounce and per pound figures, all financial results are in thousands of US dollars.
"2013 represented a transitional year with the wind-down of gold phase operations and completion of construction of the copper plant and then successfully bringing the copper operation to commercial production in December," stated Cliff Davis, President and CEO of Nevsun. "From a cash perspective, we started the year with almost $400 million, invested approximately $86 million and returned $24 million to shareholders. Despite these expenditures and despite spending several months bringing the copper plant to commercial production, the Company maintained a strong balance sheet, ending the year with almost $420 million in working capital and no debt.
"In 2014 the Bisha Mine expects to be in the bottom quartile of low-cost copper producers and to produce between 180 and 200 million pounds of copper. We have continued an aggressive generative exploration program on the highly prospective Bisha property and neighbouring Mogoraib River license and we are continuing to actively evaluate potential merger and acquisition opportunities."
|Key operating information - Bisha Mine(1)||2013||2012|
|Oxide ore mined, tonnes||1,187,000||1,591,000|
|Supergene ore mined, tonnes||805,000||-|
|Waste mined, tonnes||9,038,000||8,677,000|
|Strip ratio, (using tonnes)(2)||4.5||5.5|
|Copper phase prestrip, tonnes||-||1,220,000|
|Processing - copper:|
|Copper feed grade, %||3.9||-|
|Recovery, % of copper||73.5||-|
|Copper in concentrate produced, millions of pounds||48.0||-|
|Copper in concentrate sold, millions of pounds(3)||30.6||-|
|Copper price realized per pound(3)||$||3.20||$||-|
|Processing - gold:||2013||2012|
|Gold grade (g/t)||3.43||6.21|
|Recovery, % of gold||79.4||85.8|
|Gold in doré, ounces produced||92,000||313,000|
|Gold ounces sold||96,700||320,700|
|Gold price realized per ounce||$||1,471||$||1,671|
|(1)||For quarterly information, refer to the Annual MD&A, key operating information.|
|(2)||In previous disclosures, strip ratio was calculated using BCMs. As supergene ore density is nearly double that of previous oxide ore density and haul trucks are limited by tonnage, it is more appropriate to report strip ratio now by tonnes of waste to ore rather than by BCMs of waste to ore.|
|(3)||Copper in concentrate sold in 2013 was all related to the pre-commercial production period. As a result, the proceeds associated with these sales are offset against pre-commercial production capital costs and are not recorded as revenues.|
Mined ore tonnage of 1,992,000 for 2013 was up 25% from the 1,591,000 ore tonnes mined in 2012. While waste movement of 9,038,000 tonnes was up from the 8,677,000 moved in 2012, the Company did not achieve its waste mining target. The shortfall in waste movement is not expected to affect 2014 copper ore production.
Commercial production was declared for the copper plant on December 1, 2013. During 2013 the Company produced 48.0 million pounds of copper in concentrate and sold 30.6 million pounds of copper in concentrate. Pre-commercial production sales were offset against the capitalized pre-commercial production costs. Decreased gold production in 2013 of 92,000 ounces resulted from the wind-down of the gold plant through the first half of the year and its subsequent decommissioning. The results are not comparable to 2012, which saw 313,000 ounces produced with a full twelve months of commercial gold operations.
|In US $000s (except per share data)||
|Net income for the year||29,254||246,696|
|Net income attributable to Nevsun shareholders||$||12,857||$||145,262|
|Earnings per share attributable to Nevsun shareholders - basic||0.06||0.73|
|Earnings per share attributable to Nevsun shareholders - fully diluted||0.06||0.72|
|Total long term financial liabilities||$||53,802||$||38,717|
|Dividends declared per share||$||0.14||$||0.10|
|(1)||Copper commercial operations commenced December 1, 2013. The 2013 figures only reflect gold phase operating results and do not include copper sales.|
The Company's revenues for 2013 of $155,698 (2012 - $566,039) are comprised of revenues on gold sales of $142,241 (2012 - $535,945) and revenues on by-product silver sales of $13,457 (2012 - $30,094). Gold revenues included sales of 96,700 ounces of gold (2012 - 320,700 ounces) at an average realized price of $1,471 per ounce (2012 - $1,671 per ounce). These average realized prices per ounce of gold sold compare to the average market price per ounce (London PM Fix) of $1,411 for 2013 and $1,669 for 2012. Included in revenues are silver by-product revenues for 2013 from sales of 507,935 ounces of silver (2012 - 962,000 ounces) at an average realized price of $24.63 per ounce (2012 - $31.28 per ounce).
The Company's cash and cash equivalents at December 31, 2013, were $302,724, down from $396,404 as at December 31, 2012; working capital as at December 31, 2013, and 2012, was approximately $420,000 and $398,000, respectively.
Conference call details
The Company will hold a conference call on Thursday, March 13, 2014, at 8:00AM Vancouver / 11:00AM Toronto, New York / 3:00 PM London, to discuss the annual 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: 0203 376 0238 (toll free)
Other International: +1 416-764-8688 / +1 778-383-7413
The conference call will be available for replay until March 20, 2014, by calling 1 888-390-0541 / +1 416-764-8677 and entering passcode 135353.
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 in the putative class action lawsuit, 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, including, without limitation, the risks more fully described in Company's Management Discussion and Analysis for the year ended December 31, 2013.
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.
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.
NEVSUN RESOURCES LTD.
"Cliff T. Davis"
Cliff T. Davis
President & Chief Executive Officer
SOURCE Nevsun Resources Ltd.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 25, 2016 10:00 AM EDT Reads: 809
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
Sep. 25, 2016 10:00 AM EDT Reads: 982
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Sep. 25, 2016 10:00 AM EDT Reads: 1,330
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Sep. 25, 2016 10:00 AM EDT Reads: 935
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Sep. 25, 2016 09:45 AM EDT Reads: 4,261
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 25, 2016 09:45 AM EDT Reads: 1,760
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 25, 2016 09:00 AM EDT Reads: 1,534
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Sep. 25, 2016 08:15 AM EDT Reads: 1,461
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 25, 2016 08:00 AM EDT Reads: 1,667
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Sep. 25, 2016 08:00 AM EDT Reads: 1,485
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 25, 2016 08:00 AM EDT Reads: 1,496
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 25, 2016 06:30 AM EDT Reads: 2,805
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Sep. 25, 2016 05:45 AM EDT Reads: 1,612
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Sep. 25, 2016 05:30 AM EDT Reads: 992
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 25, 2016 04:45 AM EDT Reads: 1,514