Q Out, NSU crushes estimates and selling for 1.5 EV/EBITDA They Doubled the profit est and Beat Revs by about 35%, its copper/gold/silver/zinc miner in Africa (Canada Company) with $438 million cash in bank. The mine is super rich, hence why at low copper prices they made so much money. I now have a 10 Bagger+ in CLGRF, so get asked a lot, "what is the next CLGRF?" Many good ones but JMHO NSU is the most likely to 5 bag in next year. Here is their new slide show https://www.nevsun.com/investors/ They also have tens of thousands of gold oz concentartes sitting in a pile awaiting higher gold prices. Its worth a look. Have bot a pile of it at avg 3.20s. Also they have >3 billion pounds of Zinc in the ground in same deposit and have a zinc circuit coming on 2Q-3Q The cash is most of the stock value, its dirt cheap.
Nevsun Exceeds Production Plan and Cost Guidance in Q1 2016 (out last nite)
Nevsun Resources Ltd. (TSX:NSU)(NYSE MKT:NSU) (Nevsun or the Company) is pleased to report its financial and operating results for the three months ended March 31, 2016. Unless otherwise noted, with the exception of earnings per share and realized price and cost per pound figures, all financial results are in millions of US dollars.
First quarter 2016 highlights
- Continued first quartile safety performance at Bisha
- Produced 34 million pounds of copper at C1 cash costs(1) of $1.12 per payable pound sold
- Sold 20,000 gold equivalent ounces from stockpiles
- Generated earnings per share of $0.04 and $33 million in operating income
- Ended period with working capital of $483 million, including $438 million of cash
- Paid quarterly dividend of $0.04 per share
Financial Review
| | | Q1 2016 | | Q1 2015 |
| Revenue (millions) | $ | 92.4 | $ | 117.2 |
| Operating income (millions) | | 32.9 | | 42.6 |
| Net income (millions) | | 15.6 | | 23.0 |
| Net income attributable to Nevsun shareholders (millions) | | 7.5 | | 12.6 |
| Basic earnings per share attributable to Nevsun shareholders | | 0.04 | | 0.06 |
| Working capital (millions) | | 483.3 | | 517.0 |
| Copper price realized, per payable pound sold | | 2.20 | | 2.49 |
| C1 cash cost per payable pound sold(1) | $ | 1.12 | $ | 1.23 |
We’ve concluded another successful and profitable quarter," stated Cliff Davis, President and CEO of Nevsun. "Nevsun earned $15.6 million during Q1 2016 ($7.5 million attributable to Nevsun shareholders) or $0.04 per share. We are pleased to see the impact of our cost reduction efforts in our $1.12 C1 cash cost per payable pound sold. The zinc expansion project continues to progress well with hot ore commissioning scheduled for late Q2 2016. The project will be completed on time and well under budget. We still have not committed any of our zinc off-take so as to take advantage of the expected tightening zinc concentrate supply."
(1) C1 cash cost per payable pound sold is a non-GAAP measure – see page 12 of the Q1 2016 MD&A for a discussion of non-GAAP measure.
Operations Review
| | Q1 2016 | Q1 2015 |
| Ore mined, tonnes(1) | 1,337,000 | 657,000 |
| Waste mined, tonnes | 2,028,000 | 3,517,000 |
| Strip ratio, (using tonnes) | 1.5 | 5.4 |
| Ore milled tonnes | 584,000 | 441,000 |
| Copper feed grade, % | 3.1 | 4.7 |
| Recovery, % of copper | 87.0 | 83.8 |
| Copper concentrate grade, % | 23.0 | 24.8 |
| Copper in concentrate produced, millions of pounds | 34.2 | 38.0 |
| Copper in concentrate produced, tonnes | 15,500 | 17,200 |
| Payable copper in concentrate sold, millions of pounds(1) | 34.9 | 47.4 |
| Payable copper in concentrate sold, tonnes(1) | 15,900 | 21,500 |
| Payable gold in concentrate sold, ounces | 6,000 | 6,900 |
| Payable silver in concentrate sold, ounces | 226,000 | 369,000 |
- Ore tonnes mined for the three months ended March 31, 2016 included no oxide ore (three months ended March 31, 2015 – 11,000 tonnes), 732,000 tonnes of supergene ore (three months ended March 31, 2015 – 518,000) and 605,000 tonnes of primary ore (three months ended March 31, 2015 – 128,000).
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Cliff Davis continued, “We are off to a great start to 2016 with supergene production ahead of guidance and strong demand for our gold equivalent ounces from stockpiles. The precious metal stockpiles sales confirm the marketability of this material at more favourable commercial terms than originally expected. With the strong gold and silver prices, we will prioritize shipping precious metal stockpile material over zinc concentrate to maximize earnings and cash flow.”
Conference call details
The Company will hold a conference call on Friday, April 22, 2016, at 8AM Vancouver / 11AM Toronto, New York / 4PM London, to discuss the Q1 2016 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: 0800 652 2435 (toll free)
Other International: +1 416-764-8688 / +1 778-383-7413
The conference call will be available for replay until May 8, 2016, by calling 1 888-390-0541 / +1 416-764-8677 and entering passcode 486448.