Nevsun Records 7th Consecutive Quarterly Profit in Q3 2015

Nevsun 's share poised to go higher with news of such endorsement
Nevsun continued to grow and grow despite lower copper price season and lower production at Bisha.

By Nevsun,

Nevsun Resources Ltd. (TSX:NSU)(NYSE MKT:NSU) is pleased to report its financial and operating results for the three and nine months ended September 30, 2015.

Cliff Davis, CEO of Nevsun, commented, “Nevsun’s balance sheet remains strong and poised for growth despite weaker metal prices and lower production at Bisha. On a year-to-date basis, we have generated earnings and free cash flow to fund our zinc capital expansion and comfortably maintain our dividend.”

Cliff Davis went on to say, “We reiterate our annual production guidance of 140 -150 million pounds of copper at a C1 cash cost per payable pound of copper of $1.20 to $1.40. Our disciplined approach to cost control and capital execution remain the building blocks for long-term success. We look forward to leveraging this skill set with our M&A strategy.”

Third quarter 2015 highlights

  • Earned $0.01 per share despite significant decline in copper prices
  • Generated $127 million in cash year-to-date from operating activities
  • Maintained strong working capital of $489 million, including $434 million of cash
  • Produced 32.5 million pounds of copper
  • Continued low C1 cash costs() of $1.56 per payable pound sold
  • Paid quarterly dividend of $0.04 per share
  • Continued zinc expansion project – on-time and on-budget
  • Progressed significantly on the Bisha life of mine optimization study
  • Announced additional positive drilling results confirming confidence in emerging Bisha VMS district

OPERATION REVIEW Three months ended 
September 30Nine months ended 
September 30,
2015201420152014
Ore mined, tonnes(1)882,000481,0002,310,0001,665,000
Waste mined, tonnes2,578,0002,707,0008,700,0008,897,000
Strip ratio, (using tonnes)2.95.63.85.3
Ore milled, tonnes485,000477,0001,355,0001,216,000
Copper feed grade, %3.86.34.26.3
Recovery, % of copper79.685.681.984.7
Copper concentrate grade, %22.527.224.127.6
Copper in concentrate produced, millions of pounds32.556.4102.9143.5
Copper in concentrate produced, tonnes14,80025,60046,70065,100
Payable copper in concentrate sold, millions of pounds(2)30.849.8111.8135.3
Payable copper in concentrate sold, tonnes(2)14,00022,60050,70061,400

(1)During the three and nine months ended September 30, 2015, 398,000 and 792,000 tonnes of primary ore were mined and stockpiled for future production, respectively.

(2)Q1 2014 included sales of 4.5 million pounds or 2,000 tonnes of pre-commercial production. Receipts from pre-commercial production sales were credited against mineral property, plant and equipment, net of cost of sales.