CALGARY, ALBERTA -- (Marketwired) -- 05/16/16 -- New Millennium Iron Corp. ("NML" or the "Company") (TSX: NML) announced today its financial results for the first quarter ended March 31, 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 first quarter were as follows:
On the development of NML's principal asset - its taconite iron ore resources: Continuation of the NuTac initiative, under which the Company is carrying out an in-house pre-feasibility level study of a taconite development sized for market entry that considers all of NML's taconite deposits, applies transferable information from the 2014 Taconite Project feasibility studies, and contemplates using existing rail and port infrastructure as opposed to the slurry transportation mode assumed in the earlier studies.
On Tata Steel Minerals Canada Ltd. in which NML is a 6% investor and includes a direct shipping ore ("DSO") project: 1) A temporary scaling down of winter operations, including stabilization activities of the processing plant; 2) announcement of an agreement-in-principle between the Government of Quebec and Tata Steel Global Minerals Holdings Pte. Ltd. on the Government's possible investment in the DSO project; and, subsequent to the quarter, posting by the respective government regulatory authorities of the Howse project environmental impact statement for public comment.
At the general NML corporate level: 1) Special Meeting of shareholders and vote against Director Removal Resolution; 2) Board of Directors renewal and continuing candidate search by the Company's Corporate Governance and Compensation Committee; 3) scaling back of field operations; and 4) the Government of Quebec's acquisition of land and infrastructure at the site of the Sept-Iles Port Authority's ("Port") new, deep water multi-user dock, along with the planned organizational structure for management of those assets. Subsequent to the quarter the Port notified the Company that the multi-user dock has been delivered and is operational and that the Company's take or pay obligation under its July 2012 contract with the Port is in effect. The Company has advised the Port of its position that the Port's notice is inappropriate, without effect and invalid. (See NR 16-11, May 11, 2016)
The Company's working capital at March 31, 2016 is $17,654,000 (December 31, 2015 - $19,501,000).
The net loss for the three months ended March 31, 2016, is $1,643,000 ($0.01 per share) compared to a net loss of $1,156,000 ($0.01 per share) for the comparative period in 2015. This loss represents general and administrative expenses of $1,692,000 (2015 - $1,331,000) partially offset by investment income of $49,000 (2015 - $175,000). The increase in the quarter's general and administrative expenses is mainly due to expenditures of $696,000 (2015 - $Nil) relating to the Special Meeting of shareholders and that with the wind down of the Taconite Feasibility Study there was no general and administrative expense recovery from Tata Steel during the quarter (2015 - recovery of $590,000).
As at March 31, 2016, the Company's mineral exploration and evaluation assets increased to $61,819,000 from $61,577,000 as of December 31, 2015, or by $242,000. The components of mineral properties at March 31, 2016, were: mineral licences of $2,631,000, drilling of $32,297,000, resource evaluation of $42,594,000, environmental of $19,809,000 and amortization of property and equipment of $109,000. These expenditures are partially offset by tax credits and mining duties of $12,918,000 and the Tata Steel payments on account of their Taconite Project options of $22,703,000.
About New Millennium
The Company is a Canadian iron ore development company with an extensive property position in Canada's principal iron ore district, the Labrador Trough, straddling the Province of Newfoundland and Labrador and the Province of Quebec, in the Menihek Region around Schefferville, Quebec. The Company's project areas are connected via a well-established, heavy-haul rail network to the Port of Sept-Iles, Quebec, where NML is among a group of companies that has advanced funds to secure capacity at a new deep-water iron ore loading dock.
In addition to having a management team experienced with the technical, environmental and commercial aspects of Labrador Trough ores, the Company is in a strategic partnership with Tata Steel, a global steel producer and industry leader. Tata Steel owns approximately 26.2% of the Company and is the Company's largest shareholder.
Together through Tata Steel Minerals Canada Ltd., which is owned 94% by Tata Steel and 6% by the Company, the two companies have developed a direct shipping ore ("DSO") project that is producing and shipping sinter fines.
Beyond the DSO project, the Company offers further development potential through seven, long-life taconite properties capable of producing high quality pellets and pellet feed to service the requirements of steel makers with either blast furnace or direct reduced iron making operations. Two of these deposits -- LabMag and KeMag -- were the subject of large-scale development feasibility studies carried out by the Company and Tata Steel and published in March 2014.
With these feasibility study results as a foundation and all seven taconite properties now explored to a NI 43-101 compliant resource, the Company can optimize its taconite development strategy and is currently focused on a smaller market entry project.
For further information, please visit www.NMLiron.com, www.tatasteelcanada.com and www.tatasteel.com.
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 Company are based on certain key expectations and assumptions of the Company 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 Company considers 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 Company 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 Company; 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; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, along with the Company's annual information form, all of which are filed and available for review on SEDAR at www.sedar.com. 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 Company 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 Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
Robert Patzelt, Q.C.
President & Chief Executive Officer
Tel: (514) 935-3204 ext. 370
Vice-President, Investor Relations and Corporate Affairs
Tel: (514) 935-3204 ext. 349
Tel: (416) 577-9927