CALGARY, Alberta, Canada (Marketwire – November 13, 2012) – New Millennium Iron Corp. (“NML” or the “Corporation”) (TSX: NML) announced today its financial results for the third quarter ended September 30, 2012. The following review of the Company’s financial performance is based on the unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”), which have been filed on the SEDAR website at www.sedar.com.
Progress continued in the third quarter on NML’s three major iron ore project initiatives, two of which are being carried out with strategic partner and shareholder Tata Steel Limited.
Tata Steel Minerals Canada Ltd. (“TSMC”), in which NML has a 20% ownership interest, has made the following advancements on its Direct Shipping Ore Project (“DSO Project”): (1) Initial mining, crushing and screening of saleable ore at Timmins operating site; (2) advancement of the construction phase, including progress on erection of the dome that will house the processing plant; (3) signing of a long-term agreement with Genesee & Wyoming Inc. and KéRail Inc. for haulage of product to the Tshiuetin Rail Transportation interchange near Schefferville, Québec; and (4) announcement of TSMC’s participation in the new multi-user, deep water dock facility at Sept-Îles, Québec.
On NML’s Taconite Project, advancement of the wide range of feasibility level work under a Binding Heads-of-Agreement with Tata Steel continued on the large LabMag and KéMag deposits, expected to be completed at year-end. Also, Project logistics were supported by NML’s previously announced investment in the multi-user iron ore loading dock now under construction at the deep water port of Sept-Îles, Québec.
On NML’s third project, exploration continued at other Millennium Iron Range taconite properties that are controlled by NML and which represent potential opportunities for additional strategic partnerships. In this regard drilling was completed at both NML’s 100% owned Perault Lake property and 80% owned Sheps Lake property, and initial results were presented. The Corporation has also started drilling at 100% owned Howells Lake and 80% owned Howells River North as well as additional drilling at KéMag.
Also as previously announced, NML is among a group of mining companies participating in feasibility study of a new railway and terminal handling facility to service mining projects in the Labrador Trough. The study is being carried out by Canadian National Railway Co. and will enable NML to fully assess the transportation options available to its projects.
Subsequent to the quarter, NML presented an update on the DSO Project’s 2012 production plan, the overall Project progress and the capital cost estimate. NML also announced the appointment of Mr. Rock Gagnon as NML’s Vice President, Process and Plant Engineering. In addition, NML and TSMC together have been named Developer/Miner of the Year for 2012 by the Newfoundland Branch of the Canadian Institute of Mining and Metallurgy.
For the three months ended September 30, 2012, the Company realized a net loss of $3,086,000 ($0.02 per share) compared to a net loss of $1,849,000 ($0.01 per share) for the comparative period in 2011. This loss represents expenses of $3,489,000 (2011 - $2,107,000), net of investment income of $247,000 (2011 - $258,000), other income of $6,000 (2011 – Nil) and service fee revenue of $149,000 (2011 – Nil). The most significant expense items were stock based compensation of $1,112,000 (2011 - $1,628,000), general and administrative expenses of $1,779,000 (2011 – recovery of $204,000), market development expenses of $208,000 (2011 – $318,000) and professional fees of $244,000 (2011 – $351,000). NML’s general and administrative expenses for the quarter included an allocation for the payments from Tata Steel Global Minerals Holdings PTE Ltd. (“Tata Steel”) for its option on the LabMag Project and KéMag Project as well as an adjustment for prior periods. The net result for the quarter was that general of administrative expenses increased by $568,000 in comparison to a reduction of $1,012,000 for the corresponding period in 2011.
The Company’s working capital at September 30, 2012 is $68,114,000 (December 31, 2011 - $109,214,000). The net loss for the nine months ended September 30, 2012, is $6,876,000 ($0.04 per share) compared to a net loss of $7,429,000 ($0.04 per share) for the comparative period in 2011. This loss represents general and administrative expenses of $8,330,000 (2011- $8,622,000) partially offset by service fee revenue of $586,000 (2011 – Nil), investment income of $863,000 (2011 - $593,000) and other income of $6,100 (2011 - $600,000). Again, the most significant components of the general and administrative expenses were: stock based compensation of $3,843,000 (2011 - $4,318,000), general and administrative expenses of $2,491,000 (2011 - $1,016,000), professional fees of $791,000 (2011 – $2,544,000), and market development expenses of $670,000 (2011 – $689,000). Included in the general and administrative expenses for the nine months ended September 30, 2012, NML recorded a reduction of expenses in the amount of $500,000 (2011 – $1,012,000) for payments received from Tata Steel.
As at September 30, 2012, the Company’s mineral exploration and evaluation assets increased to $50,896,000 from $35,919,000 as of December 31, 2011, or by $14,977,000. The components of mineral properties at September 30, 2012, were: mineral licences of $2,778,000, drilling of $32,224,000, resource evaluation of $24,230,000, environmental of $13,263,000 and amortization of property and equipment of $95,000, net of tax credits and mining duties of $10,111,000 and the Tata Steel payments of $11,583,000.
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