CALGARY, Alberta, Canada (Marketwired – May 15, 2014) – New Millennium Iron Corp. (“NML” or the “Corporation”) (TSX: NML) (OTCQX: NWLNF) today announced its financial results for the first quarter ended March 31, 2014.
The following review of the Company’s financial performance is based on the unaudited Condensed Interim Consolidated Financial Statements (“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 first quarter in NML’s principal areas of activity, two of which involve projects being carried out with strategic partner and shareholder Tata Steel Limited.
The Direct Shipping Ore Project through a 20% ownership interest in Tata Steel Minerals Canada Ltd. (“TSMC”), operator of the Project: (1) Progress on construction of the covered ore processing plant and ancillary facilities; and (2) positive results from the 2012 drilling program showing a 23.45% increase in indicated resource estimate.
On NML’s Taconite Project, announcement of Feasibility Study results and techno-economic viability of the Taconite Project, along with implementation plan, and, subsequent to the quarter, filing on the SEDAR website of the NI 43-101 compliant Technical Reports on the Feasibility Study results.
At the general NML corporate level, Mr. Robert Patzelt, Q.C. succeeding Mr. Dean Journeaux as President and CEO of the Corporation, and, subsequent to the quarter, adoption of an advance notice by-law regarding nominations of persons for election as a director of the Corporation
The Company’s working capital at March 31, 2014 is $32,978,000 (December 31, 2013 - $35,291,000).The net loss for the three months ended March 31, 2014, is $1,735,000 ($0.01 per share) compared to a net loss of $2,001,000 ($0.01 per share) for the comparative period in 2013. This loss represents general and administrative expenses of $2,034,000 (2013- $2,303,000) partially offset by service fee revenue of $17,000 (2013 – $106,000), investment income of $282,000 (2013 - $194,000) and other income of nil (2013 - $2,000). The most significant components of the general and administrative expenses were: stock based compensation of $645,000 (2013 - $1,203,000) and professional fees of $427,000 (2013 – $219,000). During the quarter, NML recorded $338,000 (2013 – $664,000) received from Tata Steel Global Minerals Holdings PTE Ltd. (“Tata Steel”) in relation to its option on the LabMag Project and KéMag Project as a reduction of general of administrative expenses on its statement of comprehensive income. The investment income increased due to the higher interest rate being earned on a loan to TSMC (see Note 8 to the Financial Statements). The service fee revenue decreased as TSMC is utilizing less of NML’s resources as they continue to build up their own team.
As at March 31, 2014, the Company’s mineral exploration and evaluation assets increased to $62,069,000 from $61,138,000 as of December 31, 2013, or by $931,000. The components of mineral properties at March 31, 2014, were: mineral licences of $2,968,000, drilling of $35,360,000, resource evaluation of $38,206,000, environmental of $18,441,000, and amortization of property and equipment of $158,000, net of tax credits and mining duties of $13,669,000 and the Tata Steel payments of $19,395,000.
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