TORONTO, Nov.6, 2014 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) announces its review of activities and financial results for the quarter ended September 30, 2014. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2014, unless otherwise noted.
Scott Hand, Executive Chairman, commented, "Despite difficult general market conditions, the Board continues to be pleased with progress made in recent discussions regarding partnership and financing for the Dumont project. Important milestones in the third quarter included a positive report from the BAPE in September with respect to the permitting process for the Dumont project and the closing of an RNC financing in July, as well as financings for the West Raglan and Aer-Kidd projects subsequent to the end of the quarter. It is important to note financing for near term activities was completed despite difficult general market conditions experienced over the last several months."
Mark Selby, President and CEO, commented, "In my view, a near-term rebound in nickel markets will be driven by reductions in global nickel supply, as supply from the Chinese NPI industry further contracts through 2015 and Indonesian ore stockpiles continue to be depleted. Nickel demand continues to grow strongly and with limited green field capacity coming online over the remainder of the decade, Dumont will be needed to help meet the expected structural deficit in the nickel market. We are closely monitoring market conditions and will continue to manage our cash prudently in light of these conditions."
Third Quarter and Recent Highlights
Targeted Future Milestones
RNC has the following targeted key milestones to achieve the development of the Dumont Nickel Project:
For the three months ended September 30, 2014, RNC incurred a net loss of $1.6 million ($0.01 per share), compared to a net loss of $1.4 million ($0.02 per share) in the same period in 2013. The net loss increase of $0.2 million is due primarily to a higher deferred income tax expense of $0.2 million and an unrealized loss on derivative financial instruments of $0.1 million, partially offset by lower general and administrative expenses of $0.1 million.
Highlights of RNC's financial position are as follows (in millions of dollars):
September 30, 2014
December 31, 2013
Tax credits receivable3
Equity attributable to RNC shareholders
1Includes cash and cash equivalents.
2Working capital is a measure of current assets less current liabilities
3Current portion of tax credits receivable is $0.5 million (2013: $3.5 million) and non-current portion is $0.1 million (2013: $0.2 million)
RNC's ability to operate as a going concern is dependent on its ability to raise financing. While management has been successful in securing financing in the past, there can be no assurance that adequate or sufficient funding will be available in the future, or available under terms acceptable to RNC.
About Royal Nickel Corporation
Royal Nickel Corporation is a mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and platinum group metal properties. RNC's principal asset is the Dumont Nickel Project strategically located in the established Abitibi mining camp, in the municipalities of Launay and Trécesson, 25 kilometres northwest of Amos, Quebec. RNC also owns interests in two advanced stage nickel exploration properties: the Aer-Kidd project near Sudbury, Ontario and the West Raglan project in northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience in the nickel business at Inco and Falconbridge. RNC's common shares and warrants trade on the TSX under the symbols RNX and RNX.WT.
Cautionary Statements Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the liquidity and capital resources of RNC, the outlook for the nickel market, key milestones for 2014 to 2017, including timing of receipt of the main permit and the potential of the Aer-Kidd and West Raglan projects.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There are no assurances that Dumont, or any of RNC's other property interests, will be placed into production. Factors that could affect the outcome include, among others: the inability to raise the funds necessary to achieve the milestones or complete development of Dumont and inability to raise the funds necessary to advance exploration activities; the actual results of development activities at Dumont and exploration activities at Aer-Kidd and West Raglan; project delays; general business, economic, competitive, political and social uncertainties; future prices of metals; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE Royal Nickel Corporation
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