Non-cash revaluation drives Q1 2021 loss for Northern Vertex, production up
(Kitco News) - Northern Vertex Mining (TSX.V: NEE), a U.S.-focused gold producer, announced today that the company’s Moss mine, located in Arizona, USA, produced 8,787 gold ounces and 84,382 silver ounces in Q1 2021, an increase for both metals compared to 7,379 gold ounces and 58,604 silver ounces produced in Q1 2020.
The company had quarterly operating income before depreciation and depletion for the current quarter of $5,297,000 versus $5,214,000 for the quarter ended March 31, 2020. The improvements to income were driven by higher gold and silver production/sales and higher metals prices.
The company said that loss for the quarter ended March 31, 2021 of $1,575,000 (2020: income of $7,511,000), was a result of non-cash revaluation losses of $1,638,000 relating to the silver stream embedded derivative, despite strong earnings from mine operations before depreciation and depletion of $5,297,000 for the quarter, which were partially offset by finance costs of $1,566,000, of which $1,093,000 were non-cash finance costs.
Northern Vertex is a gold producing company, engaged in the acquisition, exploration, development and operation of mineral properties located in the United States. The company’s principal operation is the 100% owned Moss mine in Mohave County Arizona, which commenced commercial production as of September 1, 2018. The company also holds the Hercules exploration property, located in Lyon county Nevada, which was acquired as a result of the merger with Eclipse Gold.