CALGARY, ALBERTA--(Marketwired - Nov. 13, 2013) - New Millennium Iron Corp. (TSX:NML)(OTCQX:NWLNF) ("NML", "Company" or the "Corporation") announced today its financial results for the third quarter ended September 30, 2013.
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, which have been filed on the SEDAR website at www.sedar.com.
Progress continued in the Third Quarter on NML's major iron ore project initiatives, which are being carried out with strategic partner and shareholder Tata Steel Global Minerals Holdings PTE Ltd. ("Tata Steel").
The Direct Shipping Ore Project ("DSO Project") through a 20% ownership interest in Tata Steel Minerals Canada Ltd. ("TSMC"), operator of the Project: (1) Commencement of commercial sales; (2) Progress on construction of the covered ore processing plant and ancillary facilities; (3) Joint venture agreement with Labrador Iron Mines Holdings Limited on Howse Deposit and rail access; and (4) Cooperation Agreement with NunatuKavut Community Council.
On NML's Taconite Project, final review stage for feasibility study report by NML and Tata Steel in preparation for presentation to NML and Tata Steel Limited boards of directors.
At the general NML corporate level: (1) Investment in new multi-user dock at Sept-Îles, Québec; and (2) Resignation of Ms. Cathy Bennett from NML Board of Directors.
For the three months ended September 30, 2013, the Company realized a net loss of $1,856,000 ($0.01 per share) compared to a net loss of $3,086,000 ($0.02 per share) for the comparative period in 2012. This loss represents expenses of $2,060,000 (2012 - $3,489,000), net of investment income of $142,000 (2012 - $247,000) and service fee revenue of $62,000 (2012 - $149,000). The most significant expense items were stock based compensation of $922,000 (2012 - $1,112,000), office and administrative expenses of $660,000 (2012 - $1,779,000), market development expenses of $134,000 (2012 - $209,000) and professional fees of $266,000 (2012 - $244,000). During the quarter, NML recorded an amount of $239,000 received from 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. NML's general and administrative expenses for the third quarter in 2012 included an adjustment for these option payments from Tata Steel relating to prior periods such that the net result for the quarter was that general of administrative expenses increased by $568,000.
The Company's working capital at September 30, 2013 is $37,063,000 (December 31, 2012 - $63,040,000).The net loss for the nine months ended September 30, 2013, is $6,112,000 ($0.03 per share) compared to a net loss of $6,876,000 ($0.04 per share) for the comparative period in 2012. This loss represents general and administrative expenses of $6,881,000 (2012- $8,330,000) partially offset by service fee revenue of $203,000 (2012 - $586,000), investment income of $563,000 (2012 - $863,000) and other income of $2,000 (2012 - $6,000). Again, the most significant components of the general and administrative expenses were: stock based compensation of $3,294,000 (2012 - $3,843,000), office and administrative expenses of $1,978,000 (2012 - $2,491,000), professional fees of $764,000 (2012 - $791,000), and market development expenses of $519,000 (2012 - $670,000). During the nine months ended September 30, 2013, NML recorded an amount of $1,339,000 (2012 - $500,000) received from Tata Steel in relation to its option on the LabMag Project and KéMag Project as a reduction of general and administrative expenses on its statement of comprehensive income.
As described in detail in Note 10 of the financial statements, at September 30, 2013, the Company's mineral exploration and evaluation assets increased to $60,024,000 from $54,141,000 as of December 31, 2012, or by $5,883,000. The components of mineral properties at September 30, 2013, were: mineral licences of $2,965,000, drilling of $34,869,000, resource evaluation of $35,848,000, environmental of $17,760,000, and amortization of property and equipment of $119,000, net of tax credits and mining duties of $12,972,000 and the Tata Steel payments of $18,565,000.
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited ("Tata Steel"), one of the largest steel producers in the world, have advanced a direct shipping ore project ("DSO Project") to the production stage, from which commercial sales will soon begin. Tata Steel Limited owns approximately 26.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by Tata Steel Minerals Canada ("TSMC)", which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 21.0 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.2% Fe, 10.3 million tonnes of Inferred Resources at an average grade of 58.3% Fe and about 25.0 - 30.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009, news release 10-12 dated July 8, 2010 and news release 12-14, dated May 31, 2012). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13 dated July 5, 2006 and news release 07-11 dated July 17, 2007); KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated January 16, 2009). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits.
The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe (see news release NR 12-11, dated April 02, 2012).
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22%, and Inferred Resources of 795 million tonnes at an average grade of 30.56% (see news release NR 13-04, dated February 11, 2013).
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits, and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631 billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an average grade of 29.83% Fe (see news release NR 13-15, dated May 23, 2013).
The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P.Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking information is often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well positioned" or similar words suggesting future outcomes. In particular, this news release may contain forward-looking statements relating to future opportunities, business strategies, mineral exploration, development and production plans and competitive advantages.
The forward-looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimated results in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. Undue reliance should not be placed on forward-looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in the forward-looking statements, including among other things: inability of the Corporation to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, including business competition, changes in government regulations or in tax laws; general political and social uncertainties; commodity prices; the actual results of exploration, development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Corporation; timing and availability of external financing on acceptable terms; conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Readers are cautioned that the foregoing list is not exhaustive.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and the Corporation does not undertake and is not obligated to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
With respect to the disclosure of historical resources in this news release that are not currently in compliance with National Instrument 43-101, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.