New Millennium Iron Corp. Announces Financial Results for the Third Quarter Ended September 30, 2015, Including Impairment Charge on Investment in TSMC
CALGARY, Alberta, Canada (November 12, 2015) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) (OTCQX: NWLNF) today announced its financial results for the third quarter ended September 30, 2015.
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 will be filed on the SEDAR website at www.sedar.com.
NML’s principal activities in and subsequent to the third quarter were as follows:
On Tata Steel Minerals Canada Ltd. (“TSMC”), which includes the DSO Project, in which NML is a 6% investor: 1) Near completion of processing facilities and commencement of trial production; 2) Regular shipping of crushed and screened ore with 10 cargoes totaling approximately 1.7 million tonnes in the 2015 operating season through the third quarter; 3) Settlement with Tata Steel on cash calls stemming from NML’s investment in TSMC, and resulting dilution of interest; and 4) NML recording a non-cash impairment charge on its investment in TSMC.
On NML’s Taconite Project, announcement of review process for the 2011 heads-of-agreement with Tata Steel.
Announcement of the NuTac Project, a $2.1 million pre-feasibility study of a new approach to developing NML’s taconite properties using transferrable information from the 2014 Taconite Project Feasibility Study.
At the general NML corporate level: 1) Progress on Board of Directors’ composition and structure initiative, and appointment of three new independent directors; and 2) special information session for shareholders.
The Company’s working capital at September 30, 2015 was $22,051,000 (December 31, 2014 – $28,871,000).
For the three months ended September 30, 2015, the Company realized a net loss of $27,766,000 ($0.15 per share) compared to a net loss of $1,472,000 ($0.01 per share) for the comparative period in 2014. This loss is mainly due to a non-cash impairment on long-term investments in TSMC in the amount of $26,799,000 (2014 – $Nil) as well as general and administrative expenses of $1,413,000 (2014 – $1,659,000) net of investment income of $161,000 (2014 – $186,000) and a reversal of provision due to NNK Trust of $285,000 (2014 – $Nil).
For the nine months ended September 30, 2015, the Company realized a net loss of $30,008,000 ($0.17 per share) compared to a net loss of $5,025,000 ($0.03 per share) for the comparative period in 2014. This loss is mainly due to a non-cash impairment on the long-term investment in TSMC in the amount of $26,799,000 (2014 – $Nil) as well as general and administrative expenses of $3,998,000 (2014 – $5,703,000) net of investment income of $502,000 (2014 – $655,000) and a reversal of provision due to NNK Trust of $285,000 (2014 – $Nil).
Management performed an impairment test on its long-term investment in TSMC that resulted in the carrying amount of the investment exceeding the estimated recoverable amount and the recording of a non-cash impairment of $26,799,000.
As at September 30, 2015, the Company’s mineral exploration and evaluation assets increased to $61,183,000 from $60,240,000 as of December 31, 2014, or by $943,000. The components of mineral properties at September 30, 2015, were: mineral licenses of $2,630,000, drilling of $32,297,000, resource evaluation of $42,000,000, environmental of $19,717,000, and amortization of property and equipment of $109,000, net of tax credits and mining duties of $12,906,000 and the Tata Steel payments of $22,664,000