TORONTO, Nov. 5, 2015 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) announces its review of activities and financial results for the quarter ended September 30, 2015. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the unaudited condensed consolidated interim financial statements for the three months ended September 30, 2015, unless otherwise noted.
Mark Selby, President and CEO, commented, "RNC continued to make significant progress during the third quarter despite weak market conditions. We closed a $13 million financing with Orion Mine Finance, signed an MOU with DF-Ausenco and are making good progress on the work required for a fixed price EPC Lump Sum Turnkey Proposal for Dumont, continued our work with Swedbank to advance preparations to launch a bond financing when nickel market conditions are ready, and we made multiple high grade Ni-Cu-PGE discoveries at our West Raglan project."
Mr. Selby continued "While the environment for commodity prices, including nickel, remains weak, we continue to see signs that the nickel market may be turning the corner as a number of physical Chinese nickel market indicators have improved and LME nickel inventories have dropped over 40,000 tonnes since peaking in June at 470,000 tonnes."
Third Quarter Highlights
Targeted Future Milestones
RNC has the following targeted key milestones to achieve the development of the Dumont Nickel Project:
Financial Results
For the three months ended September 30, 2015, RNC incurred a net loss of $1.5 million ($0.01 per share), compared to a net loss of $1.6 million ($0.01 per share) in the same period in 2014. The net loss decrease of $0.1 million is due primarily to a gain on sale of mineral property interest ($0.1 million).
RNC continues to closely monitor market conditions and will continue to manage cash prudently in light of these conditions.
Highlights of RNC's financial position are as follows (in millions of dollars):
September 30, 2015 |
December 31, 2014 |
|
Cash position1 |
14.4 |
2.9 |
Working capital2 |
12.2 |
1.2 |
Total assets |
84.6 |
80.3 |
Equity attributable to RNC shareholders |
67.3 |
63.2 |
1 |
Includes cash and cash equivalents. |
2 |
Working capital is a measure of current assets less current liabilities |
About Royal Nickel Corporation
Royal Nickel Corporation is a multi-asset 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 2015 to 2018, including the potential of the West Raglan and Aer-Kidd 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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