CALGARY, Alberta, Canada (Marketwired – November 9, 2016) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) today announced its financial results for the third quarter ended September 30, 2016.
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
NML’s principal activities in and subsequent to the third quarter were as follows:
- Ongoing review of strategies for the development of the Company’s extensive taconite resources based upon results of the NuTac Project Initiative pre-feasibility study results, and filing of related NI 43-101 Technical Report.
- Regarding Tata Steel Minerals Canada Ltd (“TSMC”), in which NML is a minority investor, activities were: 1) direct shipping ore (“DSO”) project operations, including 2016 seasonal production and shipping; 2) progress on Howse Deposit; 3) resolution of cash call issue and resulting dilution of ownership in TSMC to 5.15%; 4) agreement with Quebec Government on $175 million equity and debt financial contribution in support of the DSO project; and, subsequent to the quarter, closing of the related transaction between TSMC and agencies of the Quebec Government, including dilution of NML’s ownership interest to 4.32%.
- At the general NML corporate level, continued implementation of planned cost reductions and further study of additional savings measures in order to preserve cash and align ongoing activities with current market conditions.
The Company’s working capital at September 30, 2016 was $15,603,000 (December 31, 2015 - $19,501,000).
For the three months ended September 30, 2016, the Company realized a net loss of $367,000 ($0.00 per share) compared to a net loss of $27,766,000 ($0.15 per share) for the comparative period in 2015. The current period’s loss represents general and administrative expenses of $714,000 (2015 - $1,414,000) partially offset by service revenue of $320,000 (2015 - $Nil) and investment income of $47,000 (2015 - $161,000).
For the nine months ended September 30, 2016, the Company realized a net loss of $3,785,000 ($0.02 per share) compared to a net loss of $30,009,000 ($0.17 per share) for the comparative period in 2015. The loss for the nine months represents general and administrative expenses of $4,265,000 (2015 - $3,998,000) partially offset by service revenue of $320,000 (2015 - $Nil) and investment income of $160,000 (2015 - $502,000).
The decrease in the net loss for the three and nine month periods from the comparative periods in 2015 is mainly due to the Company incurring a non-cash impairment on long-term investments in TSMC in 2015 in the amount of $26,799,000 for which there is no impairment in 2016.
As at September 30, 2016, the Company’s mineral exploration and evaluation assets increased to $62,182,000 from $61,577,000 as of December 31, 2015, or by $605,000. The components of mineral properties at September 30, 2016, were: mineral licenses of $2,638,000, drilling of $32,297,000, resource evaluation of $42,733,000, environmental of $19,904,000, and amortization of property and equipment of $109,000, net of tax credits and mining duties of $12,918,000 and the Tata Steel payments of $22,581,000.
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