NEVSUN Resources Ltd. (TSX:NSU / NYSE MKT:NSU) (Nevsun or the Company) is pleased to report its financial and operating results for the year ended December 31, 2014. Unless otherwise noted, with the exception of earnings per share and realized price per ounce and per pound figures, all financial results are in millions of US dollars.
Full year 2014 highlights
– Revenues of $555 million and earnings per share of $0.47
– Cash provided by operating activities of $217 million
– Working capital of $520 million, including $442 million cash
– Produced 196 million pounds of copper against guidance of 180 to 200 million pounds
– Achieved industry lowest-quartile C1 cash costs[i] of $1.05 per pound
– Executed a successful 27,300 metre exploration program
– Progressed zinc plant expansion – on time and on budget
– Announced a 14% increase to the annualized dividend, from $0.14 to $0.16 per share (approximately 34% of earnings per share)
Q4 2014 highlights
– Revenues of $139 million and earnings per share of $0.11
– Cash provided by operating activities of $63 million
– Produced 53 million pounds of copper with C1 cash costs of $1.071 per pound
– Improved Q4 waste mining tonnage and daily milling throughput
To view the Financial Review table, please follow this link.
Cliff Davis, Nevsun CEO, commented,
“The team at Bisha managed the copper business very well and the financial results speak for themselves. The strength of our balance sheet, our success at exploration and the demonstrated capital discipline over the past year should provide investor confidence in Nevsun’s future. The ability to deliver on what we promise and the growing confidence of even further mine life extension prompted us to increase our dividend as a reward to our shareholders. We remain very focused on cost containment especially given the decrease in copper prices we have seen thus far in 2015.”
To view the Operating Review table, please follow this link.
“We are very pleased with our operating performance in 2014. It was critical to ensure we maximized the high grade phase of the supergene ore in 2014. With a solid year of operating experience in copper under our belts, we are poised for a strong 2015. We were very pleased to see higher mining and milling rates during Q4 2014 which give assurance that throughput rates can increase when feed grades gradually decline.”
The Company’s growth strategy remains intact.
“We will continue to allocate capital for exploration in the underexplored Bisha VMS district. During 2014 we grew our indicated and inferred mineral resources. At Harena our inferred mineral resources increased by 498 million pounds of zinc and 156 million pounds of copper. With US$442 million in the bank at December 31, 2014, or US$2.24 per share, we are well positioned to fund external growth opportunities. Our patience to complete a merger or an acquisition has proven to be the right strategy. Given the current market conditions we expect there will be greater opportunities during 2015.”