November 29, 2019, Vancouver, B.C. - Northern Vertex Mining Corp. (TSX.V:NEE) (the “Company”) is pleased to announce its strongest quarter to date with revenue of $14.6 million, earnings from mine operations before depreciation and depletion of $3.8 million and cash provided by operating activities of $3.3 million. All amounts are in US dollars unless otherwise noted.
Kenneth Berry, President and CEO, states: “During the quarter, record setting revenue of $14.6 million and earnings from mine operations, excluding depreciation and depletion, of $3.8 million represent significant improvements from previous quarters. Production of 8,460 gold ounces and 68,421 silver ounces represents our strongest quarter since announcing commercial production in September 2018.”
Financial and Operating Highlights for the Quarter Ended September 30, 2019
•Cash was $5.86 million at September 30, 2019 compared with $3.44 million at June 30, 2019. The increase in cash compared to the year ended June 30, 2019 was primarily due to increased gold sales and an increased realized gold price contributing to positive operating cash flow from operating activities.
•Gold and silver sales for the quarter were 9,112 gold ounces and 73,495 silver ounces with average realized prices per ounce of $1,467 and $17.16 respectively.
•Earnings from mine operations, before depreciation and depletion, for the quarter was $3.79 million compared $0.21 million for the quarter ended September 30, 2018.
•Loss for the quarter was $5.65 million ($0.02 per share) compared to a loss of $1.15 million ($0.01 per share) for the same period in the prior year. Loss for the quarter includes $4.98 million of non-cash finance costs.
•During the quarter, the Company stacked 9,738 contained gold ounces and 150,733 contained silver ounces and produced 8,460 gold ounces and 68,421 silver ounces.
•The crushing plant processed 452,858 tonnes of ore with an average gold grade of 0.67 g/t and an average silver grade of 10.35 g/t.
The Company’s interim consolidated financial results for the quarter ended September 30, 2019 (the Company’s first fiscal quarter 2020) have been filed on SEDAR. The information in this news release should be read in conjunction with the Company’s Condensed Interim Consolidated Financial Statements and Management’s Discussion & Analysis available on the Company’s website at www.northernvertex.com or under the Company’s profile on SEDAR at www.sedar.com.
Operating Statistics for the Quarter Ended September 30, 2019
Three Months Ended
September 30, 2019
Three Months Ended
September 30, 2018 1,2,3
Ore mined t 452,418 481,215
Waste mined t 1,048,007 724,882
Total mined t 1,500,425 1,206,097
Strip ratio waste/ore 2.32 1.51
Tonnes stacked t 452,858 392,489
Tonnes stacked per day (average) tpd 4,922 ,266
Contained gold ounces stacked oz. 9,738 9,888
Contained silver ounces stacked oz. 150,733 100,242
Gold grade g/t 0.67 0.78
Silver grade g/t 10.35 7.94
Merrill Crowe recovery – gold % 96 69
Merrill Crowe recover – silver % 97 93
Gold ounces produced 4 oz. 8,460 5,554
Silver ounces produced 4 oz. 68,421 20,536
Gold ounces sold 5 oz. 9,112 5,404
Silver ounces sold 5 oz. 73,495 19,307
1.The Moss Mine commenced commercial production effective September 1, 2018. In relation to this, only financial operating results from this date are recognized in the Company's Condensed Interim Consolidated Statements of Loss and Comprehensive Loss for the three months ended September 30, 2018. Financial operating results from the Moss Mine prior to September 1, 2018 were capitalized to property, plant and equipment.
2.The operating statistics for the three months ended September 30, 2018 include pre-commercial production results.
3.Crushing statistics for the three months ended September 30, 2018 have been adjusted from previously released statistics due to a change in the Company’s estimate of tonnes and contained ounces stacked during the three months.
4.The three months ended September 30, 2018 includes 3,672 gold ounces and 12,009 silver ounces that were produced pre-commercial production being the two months ended August 31, 2018.
5.The three months ended September 30, 2018 includes 4,454 gold ounces and 14,597 silver ounces that were produced during pre-commercial production and sold during commercial production being the one month ended September 30, 2018.
The Company also announces that under the terms of the convertible debentures issued under the convertible debenture indenture dated July 14, 2016 (the “Indenture”) between the Company and Computershare Trust Company of Canada, it has elected to satisfy its obligation to pay an aggregate of C$167,500 in interest accrued on the convertible debentures by issuing to such debenture holders on the interest payment date of December 2, 2019 an aggregate of 670,000 common shares. The Company will pay to each such debenture holder approximately 10 common shares per $100 principal amount of debentures held as at the applicable interest payment record date. Under the terms of the Indenture, no fractional common shares will be delivered upon payment of the interest obligation and the Company is not required to pay the cash equivalent of any amount less than $5.00. The issuance of common shares in payment of interest remains subject to Exchange approval.
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