140 million pounds of nickel
5 high quality exploration projects + Lockerby Mine, Sudbury On
Message: First Nickel Reports Third Quarter 2012 Financial and Operating Results Lockerby
First Nickel Reports Third Quarter 2012 Financial and Operating Results Lockerby mine reaches 80% of full production with cash costs of $6.21 per pound
TORONTO: November 13, 2012. First Nickel Inc. (“FNI” or the “Company”) (TSX:FNI) announces its results for the third quarter ended September 30, 2012. The Company’s condensed unaudited financial statements and management’s discussion and analysis for the period have been filed with SEDAR and will be available at www.sedar.com and on the Company’s website at www.firstnickel.com. This news release should be read in conjunction with the Company’s financial statements and management’s discussion and analysis for the period ended September 30, 2012. This news release contains forward-looking information that is subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located at the end of this news release. (All dollar amounts herein are in Canadian funds unless otherwise indicated.)
HIGHLIGHTS FOR FISCAL 2012
Commercial Production: The Company declared commercial production at the Lockerby Mine on July 1, 2012.
Production: Payable nickel production was 2.0 million pounds during the third quarter of 2012, an increase of 25% over the previous quarter, and 4.9 million pounds year-to-date, both of which are at the upper end of previously stated guidance. Payable copper production was 1.4 million pounds during the quarter, an increase of 17% over the previous quarter, and 3.4 million pounds year-to-date, both of which are at the upper end of guidance. Production levels reached 80% of full production during the third quarter of 2012.
Revenue: Revenue during the third quarter of 2012 totaled $23.9 million.
Total Cash Production Costs: Operating costs net of by-product revenue were $12.6 million during the quarter, or $6.211 cost per pound of nickel produced, which is below the lower end of previously stated guidance.
Cash Flow: Operating cash flow before working capital adjustment was $2.8 million for the quarter.
Liquidity: Unrestricted cash was $5.1 million at the end of the quarter.
New Mine Plan: A new Lockerby Mine plan was issued in July 2012, indicating an $87 million NPV and a reduction of more than 100,000 waste tonnes.
Development: Ramp development totaled 179 metres in the third quarter compared to 147 metres in the second quarter, and lateral development totaled 422 metres during the third quarter of 2012 compared to 345 metres in the second quarter.
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