Liberty Mines Reports Financial Results for First Quarter 2013
TSX: LBE
TORONTO, May 9, 2013 /CNW/ - Liberty Mines Inc. (TSX: LBE) ("Liberty" or the "Company") today reported its financial results for the 3-month period ended March 31, 2013. All amounts are in Canadian currency.
During Q1 the Company focused its efforts on reducing its ongoing cash requirements to maintain the business in a care and maintenance mode. Given the current suppressed nickel price, the Company expects the Timmins operations will remain shut down for at least the balance of 2013 if not longer. The Company has elected to allow the McWatters Mine to flood but pumping continues at the Redstone Mine. As part of the cost savings initiatives, a further reduction in personnel has been made across the organization including some members from the executive team.
Further to the Company's press releases dated January 23, 2013 and March 27, 2013 the Company continues its internal review of the identification of chrysotile at the McWatters Mine. The Company has been working with the Ministry of Labour to address all applicable health and safety issues with respect to the Timmins site and is in communication with all applicable regulatory authorities. It has been determined that the Company's Mill will need to be decontaminated before any activities can be resumed.
Selected financial highlights
| All amounts in thousands except share data | March 31, 2013 | March 31, 2012 |
| Revenue | $29 | $19 |
| Cost of sales | $2,887 | $4,815 |
| Net (loss) income | $(6,156) | $(7,990) |
| Basic earnings (loss) per share | $(0.03) | $(0.04) |
| March 31, 2013 | March 31, 2012 | |
| Cash and Cash Equivalents | $404 | $547 |
| Total Assets | $52,409 | $91,505 |
| Total Liabilities | $128,850 | $105,852 |
Review of Q1 Financial Performance
Revenue for Q1 2013 was $29,372 up from $19,240 for Q1 2012. The increase was a result of revenue received for PGM credits from the concentrate Xstrata processed during operations in 2012.
Net loss for Q1 2013 was $6.1 million or $0.03 per basic and fully diluted share. The loss included amortization expenses of $2.1 million, interest on long-term debt of $2.5 million and dividends on preferred shares of $0.3 million. In the same period of 2012, Liberty recorded a net loss of $7.9 million or $0.04 per basic and fully diluted share. Liberty's mining and milling operations were partially functional in Q1 of 2012.
At March 31, 2013, Liberty had cash and cash equivalents of $404,740. This compares to $0.54 million at year end 2012.
Liberty's financial statements for the period ended March 31, 2013 are available at www.libertymines.com and www.sedar.com. The financial statements should be read in conjunction with the accompanying notes and management's discussion and analysis.
About Liberty Mines Inc.
Liberty Mines Inc. is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada. It owns the only nickel concentrator in the Shaw Dome area, a prospective nickel belt region near Timmins, Ontario. Liberty is looking to expand its business through growth initiatives not only through a more aggressive exploration program on its current properties but also through potential acquisition or partnership opportunities beyond its core Timmins area projects.
CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward looking statements". All statements other than statements of historical fact included in this release, without limitation, statements regarding future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty's expectations are: exploration risks; commodity prices; regulatory approvals; receipt of mining permits and leases; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Liberty Mines Inc.
Chris Stewart, President & CEO
Liberty Mines
(416) 226-4360 ext 203
cstewart@libertymines.com