Welcome To The New Millennium Capital HUB On AGORACOM
Developing iron ore projects in Northern Quebec and Labrador
Message: Announces Financial Results for the Fourth Quarter and Year Ending December 09
| April 29, 2009 |
| New Millennium Announces Financial Results for the Fourth Quarter and Year Ending December 31, 2008 |
| CALGARY, ALBERTA--(Marketwire - April 29, 2009) - NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES New Millennium Capital Corp. ("NML" or "the Company") (TSX VENTURE:NML) is pleased to announce its financial results for the fourth quarter and year ending December 31, 2008. The following discussion of the Company's financial performance is based on the audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2008, which have been filed on the SEDAR website at www.sedar.com. The Company's net loss for the three months ended December 31, 2008, is $3,127,000 ($0.02 per share) compared to a net loss of $507,000 ($0.01 per share) for the corresponding period in 2007. This loss represents expenses of $3,122,000 (2007 - $663,000) and change in fair value of long-term investment of $1,120,000 (2007 - Nil), net of investment income of $147,000 (2007 - $69,000) and future income taxes recoverable of $969,000 (2007 - $87,000). The most significant expense items were general and administrative of $500,000 (2007 - $348,000), market development of $76,000 (2007 - $158,000) and professional fees of $2,538,000 (2007 - $147,000). The net loss for the year ended December 31, 2008, was $4,949,000 ($0.05 per share) compared to a net loss of $2,672,000 ($0.03 per share) for the 2007 fiscal year. This loss represents expenses of $5,667,000 (2007 - $2,789,000) and change in fair value of long-term investment of $1,120,000 (2007 - $880,000), net of investment income of $284,000 (2007 - $229,000) and future income taxes recoverable of $1,554,000 (2007 - $768,000). Again the most significant expense items were general and administrative of $1,809,000 (2007 - $1,597,000), market development of $569,000 (2007 - $430,000) and professional fees of $3,253,000 (2007 - $718,000). As at December 31, 2008, the value of mineral properties increased to $35,667,000 from $26,889,000 as of December 31, 2007, or by $8,778,000. The main components of this increase were mineral licences ($67,000) resource evaluation ($2,817,000), drilling ($5,121,000), environmental ($1,280,000), and field labour and supplies ($727,000) net of tax credits and mining duties ($1,234,000). In 2007, the Company renounced Canadian Exploration Expenses of $6,000,000 in favour of the purchasers of flow-through shares in 2007 for which the renunciation documents were filed with the Canada Revenue Agency in February 2008. This renunciation resulted in the Company recording a $1,920,000 decrease in its capital stock for the future income tax effect of the renunciation. As of December 31, 2008, the Company has fulfilled all of its spending commitments in respect of such flow-though shares. The Company's management has made an assessment of the fair value of the long-term investment in asset backed commercial paper ("ABCP"). The Company estimates the fair value of the ABCP by discounting expected future cash flows determined using a valuation model that incorporates management's best estimate, based on the best available data, of credit risk attributable to the underlying assets, relevant market interest rates, amounts to be received and maturity dates. The assessment uses assumptions as to the long-term interest rate to be received on the potential long-term note compared to the short-term interest rate currently being accrued by the Company. The outcome of the assessment was included above in the Company's net loss as the change in fair value of long-term investment. The most significant fourth quarter activity, which is fully described in MD&A, was the execution of a binding agreement with Tata Steel Global Minerals Holdings Pte Limited of Singapore ("Tata Steel"), whereby Tata Steel became a strategic investor of NML acquiring approximately 19.9% of the common shares of the Company through a $23,529,200 Private Placement and an option to participate in the Direct Shipping Ore ("DSO") Project and an exclusive right to participate in the LabMag Project. Subsequent events also reported in the 2008 MD&A were: - The positive results of the KeMag project pre-feasibility study and the upgrade of mineral resources to reserves, and - The positive results of the DSO project pre-feasibility study and the upgrade of mineral resources to reserves. About New Millennium New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, the world's sixth largest steel corporation, owns 19.9% of New Millennium and is the Corporation's largest shareholder and strategic partner. Tata Steel has an exclusive option to fund the DSO Project, a commitment to take the resulting production, and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project (see news release 0817, October 1, 2008). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves plus 1.0 billion tonnes of Measured and Indicated resources and 1.2 billion tonnes of Inferred resources; KeMag contains 2.1 billion tonnes of Proven and Probable reserves, 0.3 billion tonnes of Measured and Indicated resources and 1.0 billion tonnes of Inferred resources. The Corporation's DSO project contains 52.5 million tonnes of Proven and Probable Mineral Reserves, 3.5 million tonnes of measured and indicated Mineral Resources, 5.8 million tonnes of Inferred Resources and about 40.0 million tonnes of historical resources that are not currently in compliance with NI 43-101. The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit www.nmlresources.com, www.tatasteel.com and www.corusgroup.com. |
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