Mining News
Northern Vertex reports 55% gold output increase in Q3 2020; net loss jumped 233% on non-cash revaluation
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| Moss gold mine, Arizona. Image credit: Northern Vertex. |
(Kitco News) - Northern Vertex Mining (TSX: NEE) today announced record production of 14,673 gold equivalent ounces, record revenue of $26.8 million and record adjusted EBITDA of $13.5 million for the quarter ended September 30 from the company's 100% owned Moss gold mine in Arizona.
Highlights include record gold production of 13,083 ounces, a 55% increase over previous year (8,460 ounces); record revenue of $26.8 million; record adjusted EBITDA of $13.5 million.
Moss mine AISC rose by 21% of $1,317/oz due to $292/oz included in capital expenditures tied to the construction of the powerline, exploration and a heap leach pad expansion.
Net loss is up 233% to $18.5 million, driven by non-cash derivative liabilities.
CEO Ken Berry stated: "Having financed and built the Moss mine during a challenging market environment, it is a pleasure to share this quarter's record production and financial metrics as we fully participate in this strong gold market. Our record earnings from mine operations demonstrate the robust economics of the Moss mine. The net loss this quarter is a result of the non-cash, $26.3 million mark-to-market accounting effect of our derivative liabilities, due to the strong performance of both our share price and the silver price this quarter. The Northern Vertex team continued to exceed expectations with numerous production records including the completion of key capital projects such as the powerline connection and west pit pioneering.”
Northern Vertex Mining owns and operates the Moss mine, currently the largest primary gold and silver mine in Arizona. Focused on low cost gold and silver production, the company has experience across all areas of operations, mine development, exploration, acquisitions and financing of mining projects. With operations at the flagship Moss mine achieving commercial production the company intends to consolidate additional producing or near-term production gold assets within the Western US. Through mergers and acquisitions Northern Vertex's corporate goal is to become a mid-tier gold producer.
