March 12, 2014
*Nevsun Announces Annual 2013 Financial Results*
*Full year 2013 highlights*
- Exceeded 15 million hours without a lost time injury
- Completed the copper expansion project on-time and under budget
- Achieved commercial production of copper plant
- Produced 48 million pounds of copper in concentrate against guidance
of 30 to 50 million pounds
- Produced 92,000 ounces of gold in doré plus 20,000 equivalent ounces
in precious metals concentrate
- Revenues of $155.7 million, with average realized gold price per ounce
of $1,471
- Net income of $29.3 million
- Increased annualized dividend by 40% to $0.14 per share
- Maintained strong balance sheet with approximately $420 million in
working capital
*Vancouver, BC* - Nevsun Resources
Ltd.<
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(TSX:NSU
/ NYSE MKT:NSU)<
http://cl.exct.net/?ju=fe3015797660057f771578&ls=fdf810757160047d7d107570&m=feff1373746104&l=fe9616707c660d7e75&s=fe211171756301757c1374&jb=ffcf14&t=>(Nevsun
or the Company) is pleased to report its financial and operating
results for the year ended December 31, 2013. Unless otherwise noted, with
the exception of earnings per share and realized price per ounce and per
pound figures, all financial results are in thousands of US dollars.
"2013 represented a transitional year with the wind-down of gold phase
operations and completion of construction of the copper plant and then
successfully bringing the copper operation to commercial production in
December," stated Cliff Davis, President and CEO of Nevsun. "From a cash
perspective, we started the year with almost $400 million, invested
approximately $86 million and returned $24 million to shareholders.
Despite these expenditures and despite spending several months bringing the
copper plant to commercial production, the Company maintained a strong
balance sheet, ending the year with almost $420 million in working capital
and no debt.
"In 2014 the Bisha Mine expects to be in the bottom quartile of low-cost
copper producers and to produce between 180 and 200 million pounds of
copper. We have continued an aggressive generative exploration program on
the highly prospective Bisha property and neighbouring Mogoraib River
license and we are continuing to actively evaluate potential merger and
acquisition opportunities."
To view the Operations Review table, please follow this
link.<
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Mined ore tonnage of 1,992,000 for 2013 was up 25% from the 1,591,000 ore
tonnes mined in 2012. While waste movement of 9,038,000 tonnes was up from
the 8,677,000 moved in 2012, the Company did not achieve its waste mining
target. The shortfall in waste movement is not expected to affect 2014
copper ore production.
Commercial production was declared for the copper plant on December 1,
2013. During 2013 the Company produced 48.0 million pounds of copper in
concentrate and sold 30.6 million pounds of copper in concentrate.
Pre-commercial production sales were offset against the capitalized
pre-commercial production costs. Decreased gold production in 2013 of
92,000 ounces resulted from the wind-down of the gold plant through the
first half of the year and its subsequent decommissioning. The results are
not comparable to 2012, which saw 313,000 ounces produced with a full
twelve months of commercial gold operations.
To view the Financial Review table, please follow this
link.<
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The Company's revenues for 2013 of $155,698 (2012 - $566,039) are comprised
of revenues on gold sales of $142,241 (2012 - $535,945) and revenues on
by-product silver sales of $13,457 (2012 - $30,094). Gold revenues
included sales of 96,700 ounces of gold (2012 - 320,700 ounces) at an
average realized price of $1,471 per ounce (2012 - $1,671 per ounce).
These average realized prices per ounce of gold sold compare to the average
market price per ounce (London PM Fix) of $1,411 for 2013 and $1,669 for
2012. Included in revenues are silver by-product revenues for 2013 from
sales of 507,935 ounces of silver (2012 - 962,000 ounces) at an average
realized price of $24.63 per ounce (2012 - $31.28 per ounce).
The Company's cash and cash equivalents at December 31, 2013, were
$302,724, down from $396,404 as at December 31, 2012; working capital as at
December 31, 2013, and 2012, was approximately $420,000 and $398,000,
respectively.
*Conference call details*
The Company will hold a conference call on Thursday, March 13, 2014, at
8:00AM Vancouver / 11:00AM Toronto, New York / 3:00 PM London, to discuss
the annual results. Please call in at least five minutes prior to the
conference call start time to ensure prompt access to the conference. Dial
in details are as follows:
North America: 1 888-390-0546 / +1 416-764-8688 / +1 778-383-7413
UK: 0203 376 0238 (toll free)
Other International: +1 416-764-8688 / +1 778-383-7413
The conference call will be available for replay until March 20, 2014, by
calling 1 888-390-0541 / +1 416-764-8677 and entering passcode 135353.
*Forward Looking Statements*
*The above contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation concerning anticipated
developments in the Company's continuing and future operations in Eritrea
and in the putative class action lawsuit, the adequacy of the Company's
financial resources and financial projections. Forward-looking statements
include, but are not limited to, statements concerning or the assumptions
related to estimates of capital and operating costs, the timing, nature and
extent of future copper and gold production, expanding exploration
licenses, the estimation of mineral reserves and resources, methodologies
and models used to prepare resource and reserve estimates, the realization
of mineral reserve estimates, the conversion of mineral properties to
reserves and resources, the potential to expand resources, reserves and
mine life, future exploration budgets, plans, targets and work programs,
capital expenditures and objectives, anticipated timing of grant of
permits, mining and development plans and activities, construction and
production targets and timetables, grades, processing rates, life of mine,
net cash flows, metal prices, exchange rates, reclamation costs, results of
drill programs, dividend plans and policy, litigation matters, integration
or expansion of operations, requirements for additional capital, government
regulation of mining operations, environmental risks, political risks and
uncertainties, unanticipated reclamation expenses, and other events or
conditions that may occur in the future. Forward-looking statements are
frequently, but not always, identified by words such as "expects,"
"anticipates," "believes," "intends," "estimates," "potential," "possible,"
"budget" and similar expressions, or statements that events, conditions or
results "will," "may," "could" or "should" occur or be achieved.
Information concerning the interpretation of drill results and mineral
resource and reserve estimates also may be deemed to be forward-looking
statements, as such information constitutes a prediction of what
mineralization might be found to be present if and when a project is
actually developed, and in the case of mineral reserves, such statements
reflect the conclusion based on certain assumptions that the mineral
deposit can be economically exploited. *
*Forward-looking statements are statements about the future and are
inherently uncertain, and actual achievements of the Company or other
future events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks, uncertainties and
other factors, including, without limitation, the risks more fully
described in Company's Management Discussion and Analysis for the year
ended December 31, 2013. *
* Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. The Company's
forward-looking statements are based on the beliefs, expectations and
opinions of management on the date the statements are made and the Company
assumes no obligation to update such forward-looking statements in the
future, except as required by law. There can be no assurance that such
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. For the
reasons set forth above, investors should not place undue reliance on
forward-looking statements.*
*About Nevsun Resources Ltd.*
Nevsun Resources Ltd. is a Vancouver-based mining company with an operating
mine in Eritrea. Nevsun's 60%-owned Bisha Mine commenced commercial copper
concentrate production in December 2013 and ranks as one of the highest
grade open pit copper mines in the world. Nevsun has a strong balance sheet
and future cash flows to grow shareholder value through exploration at
Bisha and acquisition of additional mining assets.
*NEVSUN RESOURCES LTD.*
*"Cliff T. Davis"*
Cliff T. Davis
President & Chief Executive Officer
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Received on Thu Mar 13 2014 - 07:36:28 EDT