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Royal Nickel Announces Second Quarter 2014 Results

August 8, 2014

TORONTO, Aug. 8, 2014 /CNW/ – Royal Nickel Corporation (“RNC”) (TSX:
RNX) is pleased to report its review of activities and financial
results for the quarter ended June 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 months ended June 30, 2014, unless otherwise noted.

Mark Selby, President & CEO, commented, “Solid progress was made during
the second quarter, including advancing the permitting process and
initiating detailed engineering work at our Dumont project. I am also
very pleased RNC has gained additional nickel exposure through the
acquisition of interests in two very exciting highly prospective
nickel-copper-PGE exploration opportunities at the Aer-Kidd property in
the Sudbury basin and the West Raglan project in Northern Quebec. The
progress at Dumont and the addition of advanced exploration
opportunities further enhances RNC’s exposure to our expectation of
very strong nickel market conditions over the next several years.”

SECOND QUARTER AND RECENT HIGHLIGHTS

        --  On April 2, 2014, RNC announced the publication of the Dumont
            Nickel Project's Environmental and Social Impact Assessment
            (ESIA) by the Quebec Ministry of Sustainable Development,
            Environment, Wildlife and Parks through the agency of the
            Bureau d'audiences publiques sur l'environnement (BAPE). This
            is an important step in the permitting process. The BAPE's
            public information and consultation processes were completed in
            May and June and the BAPE's report is expected in September
            2014. RNC continues to expect receipt of the main permit before
            the end of 2014.
        --  On April 14, 2014, RNC announced it had gained exposure to the
            highly prospective Aer-Kidd nickel-copper-platinum group metals
            project in Sudbury through the acquisition of a 25% interest in
            Sudbury Platinum Corporation for cash consideration of $1.5
            million.
        --  On May 29, 2014, RNC announced that it had awarded a contract
            to Ausenco Limited to begin detailed engineering on long lead
            equipment for the Dumont Nickel Project.
        --  On June 18, 2014, RNC announced that it had closed the
            transaction to acquire an approximate 56% interest in True
            North Nickel Inc., a private company the main asset of which is
            a 100% interest in the West Raglan nickel sulphide project in
            Quebec.
        --  On July 11, 2014, RNC announced that it had closed its
            previously announced public offering of units ("Units").
            Pursuant to the offering, RNC issued 8,340,000 Units at a price
            of $0.60 per Unit for aggregate gross proceeds of $5.0 million.
            Each Unit is comprised of one common share of RNC and one-half
            of one common share purchase warrant. Each whole warrant is
            exercisable at a price of $0.80 and entitles the holder to
            acquire one common share of RNC on or before July 11, 2016.
        --  On July 17, 2014, RNC announced that the underwriters of its
            public offering of 8,340,000 Units that closed on July 11,
            2014, had exercised their over-allotment option and have
            purchased an additional 1,251,000 Units at a purchase price of
            $0.60 per Unit. The gross proceeds to RNC resulting from the
            exercise of the over-allotment option were $0.75 million, for
            total gross proceeds from the offering of $5.75 million.
        --  On July 29, 2014, RNC announced that the NI 43-101 compliant
            technical report for the West Raglan Project had been filed
            under RNC's profile on SEDAR at www.sedar.com.
        --  RNC incurred a net loss of $3.0 million ($0.03 per share) for
            the three months ended June 30, 2014, compared to a net loss of
            $1.9 million ($0.02 per share) for the same period in 2013.

Targeted Future Milestones

Royal Nickel has the following targeted key milestones to achieve the
development of the Dumont Nickel Project:

        --  Completion of partnership and financing arrangements;
        --  Receipt of main permit during the second half of 2014;
        --  Estimated construction schedule of 22 months post successful
            permitting and securing financing;
        --  Assuming permits and financing in place by the end of 2014,
            project commissioning is targeted to begin in the second half
            of 2016 followed by production ramp-up.

Financial Results

For the three months ended June 30, 2014, RNC incurred a net loss of
$3.0 million ($0.03 per share), compared to a net loss of $1.9 million
($0.02 per share) in the same period in 2013. The increased net loss is
due primarily to higher general and administrative expenses of $1.2
million offset partially by a lower deferred income tax expense of $0.2
million. The increase in general and administrative expenses is due
primarily to a higher non-cash share-based payments expense of $1.1
million, which includes a higher vesting expense of $0.8 million and a
mark-to-market expense increase for outstanding cash-settled
share-based grants under RNC’s Share Incentive Plan of $0.3 million.
The higher vesting expense reflects the grant of approximately 4.4
million share purchase options in the quarter, 2.3 million of which
vested immediately. The increase in the mark-to-market expense reflects
an increase in RNC’s share price from $0.47 as at March 31, 2014, to
$0.63 as at June 30, 2014.

Highlights of RNC’s financial position are as follows (in millions of dollars):

     __________________________________________________________
    |                          |June 30, 2014|December 31, 2013|
    |__________________________|_____________|_________________|
    |Cash position1            |             |                 |
    |Working capital2          |       5.5   |         11.9    |
    |Tax credits receivable3   |       2.6   |         13.5    |
    |Total assets              |       0.7   |          3.5    |
    |Equity attributable to RNC|      80.5   |         74.8    |
    |shareholders              |      62.3   |         62.6    |
    |__________________________|_____________|_________________|

1 Includes Cash and Cash equivalents.

2 Working capital is a measure of current assets less current
liabilities

3 Current portion of tax credits receivable is $0.6 million (2013:
$3.3 million) and non-current portion is $0.1 million (2013: $0.2
million)

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 outlook for the nickel
market, key milestones for 2014 to 2016, 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 actual
results of development activities at Dumont and exploration activities
at Aer-Kidd and West Raglan; project delays; 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; 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


Source: PR Newswire



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