Northern Vertex notches record gold production

Northern Vertex Mining Corp. [NEE-TSXV; NHVCF] on Friday November 27 reported record revenue and production in the first quarter of fiscal 2021.

The company also generated record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $13.5 million during the first quarter ended September 30, 2020.

Northern Vertex recently put its 100%-owned Moss gold-silver project in Mohave County, Arizona into production. The mine reached commercial production in September, 2018, after the company’s partner Sprott Private Resource Lending LP, agreed to provide up to US$100 million in acquisition and development funding as well as a CAD$2 million private placement.

By deploying low-cost heap leaching methods, Northern Vertex is expecting the Moss project to produce 45,000 ounces of gold equivalent during the first five years of production. Annual cash flow is projected at US$24 million and will be used to fund expansion and acquisitions.

The Moss mine achieved record production of 14,673 gold equivalent ounces in the quarter, at an all-in-sustaining cost (AISC) of US$1,317/oz and record revenue of US$26.8 million. The AISC figure included US$292/oz in capital expenditures tied to construction of the powerline, exploration and a heap leach pad expansion.

“Having financed and built the Moss Mine during a challenging market environment, it is a pleasure to share this quarter’s record production and financial metrics as we fully participate in this strong gold market,” said Northern Vertex CEO Ken Berry.

On Friday, Northern Vertex shares eased 1.6% or $0.01 to 60 cents. Shares trade in a 52-week range of 72 cents and 15 cents.

The company posted a net loss of US$18.7 million or $0.07 per share in the quarter as a result of a non-cash, $26.3 million mark-to-market accounting impact of the company’s derivative liabilities, due to the strong performance of both the share price and the silver price during the quarter.

Key developments during the quarter included the completion of 35,000 feet of infill and exploration drilling, which is expected to lead to a resource update and revised mine plan.

The company also said the construction of a 6.9-mile power line, resulted in the mine being switched over to grid power from generator power. As a result, power costs have dropped to US$0.08 per kilowatt hour from US$0.31.

Northern Vertex plans a 30,000-metre Phase 11 drill program.