First Nickel Inc. Announces Audited Earnings and Operating Results for the Fourth Quarter and Year Ended December 31, 2014; Provides Capital Expenditures Guidance for the Year 2015
Mar 26 15
First Nickel Inc. announced audited earnings results for the fourth quarter and year ended December 31, 2014. For the year, the company's revenue was CAD 78.4 million compared with CAD 71.6 million a year ago. Loss from operations was CAD 12.9 million compared with CAD 48.9 million a year ago. Comparisons of revenues for the year ended December 31, 2014 to the same period in 2013 are affected by accounting changes under the GMV Agreement, which was adopted in the second half of 2013. Loss before taxes was CAD 20.7 million compared with CAD 55.6 million a year ago. Net loss and comprehensive loss was CAD 20.7 million or CAD 0.03 per basic and diluted share compared with CAD 55.6 million or CAD 0.09 per basic and diluted share a year ago. Operating cash flow before working capital adjustments was CAD 7.6 million.
For the quarter, the company reported revenues of CAD 19.6 million, showed a significant increase over the prior-year period, CAD 17.6 million. The increase reflects higher average realized nickel prices in the fourth quarter of 2014, combined with higher production (18% increases in tonnes from the fourth quarter of 2013).
For the year, the company's ore production was 248,573 tonnes compared with 245,903 tonnes a year ago. Contained nickel production was 13,320,436 pounds compared with 12,874,583 pounds a year ago. Contained copper production was 7,681,836 pounds compared with 7,627,710 pounds a year ago. In the year ended December 31, 2014, Lockerby produced 13.3 million pounds of contained nickel, at an average head grade of 2.43% Ni and 7.7 million pounds of contained copper, at an average head grade of 1.40% Cu. Contained-nickel production in the year-ended December 31, 2014 was 3% greater than the 12.9 million produced in 2013, reflecting a 2% increase in average nickel head grades mined and a 1% increase in ore tonnes produced. Total contained nickel pounds for the year was slightly below the lower end of the 2014 forecasted range of 13.5 to 15.1 million, while contained copper pounds for the year was in the middle of the 7.2 to 8.0 million forecasted range. The 2014 forecast had been updated at the end of the second quarter as a result of the May 6, 2014 accident. Development under backfill and blast-hole drilling was a key element of the Lockerby mine plan. After the May 6, 2014 accident, this stoping method was halted while an investigation was conducted.
For the fourth quarter of 2014, Lockerby produced 4.1 million pounds of contained nickel and 2.4 million pounds of contained copper. Production of 4.1 million contained nickel pounds during the three months ended December 31, 2014 represents a 23% increase in nickel production over the third quarter of 2014, reflecting a 28% increase in tonnes produced, partially offset by 5% lower average nickel grades. Contained-nickel production in the fourth quarter of 2014 was 11% greater than the 3.7 million pounds produced in fourth quarter of 2013, reflecting 7% increases in ore tonnes produced and average nickel head grades mined.
For 2015, the company expects capital expenditures in the range of CAD 6.5 million. General and administrative expenses (excluding share-based compensation) and exploration expenditures are projected to be approximately CAD 3.6 million and CAD 0.9 million, respectively, in 2015. The increase in expected exploration expenditures is a result of the restart of exploration diamond drilling at Lockerby as part of the Lockerby Restructuring Plan.
First Nickel Inc. Auditor Raises 'Going Concern' Doubt
Mar 25 15
First Nickel Inc. filed its Annual on Mar 25, 2015 for the period ending Dec 31, 2014. In this report its auditor, KPMG LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern.
First Nickel Inc., Special/Extraordinary Shareholders Meeting, Mar 11, 2015
Feb 18 15
First Nickel Inc., Special/Extraordinary Shareholders Meeting, Mar 11, 2015., at 10:00 US Eastern Standard Time. Location: Osler, Hoskin & Harcourt LLP. Agenda: To consider and pass an ordinary resolution approving a debt refinancing transaction involving the repayment of the Corporation's revolving credit facility with The Bank of Nova Scotia, the settlement of the convertible loan facility with Resource Capital Fund IV L.P. through the issuance of common shares in the capital of the Corporation and the refinancing of the term loans with each of Resource Capital Fund V L.P. and West Face Long Term Opportunities Global Master L.P.; to consider and approve amendment to the Corporation's articles to effect a consolidation of the Corporation's issued and outstanding common shares on the basis of a post-consolidation common share for a number of pre-consolidation common shares to be determined by the board of directors of the Corporation; and to transact other business as may properly come before the meeting or any adjournment or adjournments thereof.