COEUR D'ALENE, ID / ACCESSWIRE / May 17, 2021 / New Jersey Mining Company (OTCQB:NJMC) ("NJMC" or the "Company") today announced its consolidated operating and financial results for the first quarter of 2021. The full version of the Company's interim unaudited consolidated financial statements and management's discussion and analysis (MD&A) can be viewed on the Company's web site, and EDGAR. All amounts are expressed in U.S. dollars unless otherwise specified.
NJMC President and CEO, John Swallow stated, "We accomplished a great deal in the first quarter - from underground development, increased underground production, and a considerable amount of core drilling (kudos to Eric and Richard for making the drill their own). Additionally, our purchase of the last remaining large block of land in the Murray Gold Belt (MGB) was largely advanced during the quarter, and each employee in the company was awarded stock options for the first time in a while. Looking ahead we plan to further utilize the Company drill at the Golden Chest ahead of underground production and development and to conduct exploration drilling on the surface, therefore increased exploration costs (and corresponding results) are to be expected in the months ahead. The bullets below tell the story… we faced challenges and overcame them with a record production month in March, which was followed by a very strong April. And some of the highest-grade gold numbers we've seen were also released during the quarter."
Highlights during the first quarter of 2021 include:
Corporate Highlights include:
Cash Costs and All-In Sustaining Costs Reconciliation to GAAP-Reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) to cash cost per ounce and all-in sustaining costs (AISC) per ounce (non-GAAP) for the three-month period ending March 31, 2021 and 2019.
2021 | 2020 | |||||||
Cost of sales and other direct production costs and depreciation and amortization | $ | 1,658,030 | $ | 1,302,923 | ||||
Depreciation and amortization | (182,795 | ) | (135,533 | ) | ||||
Change in concentrate inventory | 96,960 | 6,292 | ||||||
Cash Cost | $ | 1,572,196 | $ | 1,173,682 | ||||
Exploration | 717,707 | 41,678 | ||||||
Sustaining capital | 49,158 | 11,549 | ||||||
General and administrative | 513,835 | 86,488 | ||||||
Less stock-based compensation and other non-cash items | (619,321 | ) | (2,355 | ) | ||||
All in sustaining costs | $ | 2,233,665 | $ | 1,311,042 | ||||
Divided by ounces produced | 1,065 | 1,094 | ||||||
Cash cost per ounce | $ | 1,476.24 | $ | 1,072.83 | ||||
All in sustaining cost (AISC) per ounce | $ | 2,097.34 | $ | 1,198.39 |
The table above presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization to the non-GAAP measures of cash cost per ounce and all in sustaining costs per ounce for the Company's gold production in the three-month period ending March 31, 2021 and 2020.
Cash cost per ounce is an important operating measure that we utilize to measure operating performance. AISC per ounce is an important measure that we utilize to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all of the expenditures incurred to discover, develop, and sustain gold production.
Qualified person
NJMC's Vice President, Grant A. Brackebusch, P.E. is a qualified person as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
About New Jersey Mining Company
Headquartered in North Idaho, New Jersey Mining Company is the rare example of a vertically integrated, operating junior mining company. NJMC produces gold at the Golden Chest Mine and recently consolidated the Murray Gold Belt (MGB) for the first time in over 100-years. The MGB is an overlooked gold producing region within the Coeur d'Alene Mining District, located north of the prolific Silver Valley. In addition to gold, the Company maintains a presence in the Critical Minerals sector and is focused on identifying and exploring for Critical Minerals (Rare Earth Minerals) important to our country's defensive readiness and a low-carbon future.
New Jersey Mining Company possesses the in-house skillsets of a much larger company while enjoying the flexibility of a smaller and more entrepreneurial corporate structure. Its production-based strategy, by design, provides the flexibility to advance the Murray Gold Belt and/or its Critical Minerals holdings on its own or with a strategic partner in a manner that is consistent with its existing philosophy and culture.
NJMC has established a high-quality, early to advanced-stage asset base in four historic mining districts of Idaho and Montana, which includes the currently producing Golden Chest Mine. Management is stakeholder focused and owns more than 15-percent of NJMC stock.
The Company's common stock trades on the OTC-QB under the symbol "NJMC."
For more information on New Jersey Mining Company go to www.newjerseymining.com or call:
Monique Hayes, Corporate Secretary/Investor Relations
Email: [email protected]
(208) 625-9001
Forward Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable, but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such factors include, among others, the, the risk that the mine plan changes due to rising costs or other operational details, an increased risk associated with production activities occurring without completion of a feasibility study of mineral reserves demonstrating economic and technical viability, the risks and hazards inherent in the mining business (including risks inherent in developing mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and the potential impact on revenues from changes in the market price of gold and cash costs, a sustained lower price environment, risks relating to widespread epidemics or pandemic outbreak including the COVID-19 pandemic; the impact of COVID-19 on our workforce, suppliers and other essential resources and what effect those impacts, if they occur, would have on our business, including our ability to access goods and supplies, the ability to transport our products and impacts on employee productivity, the risks in connection with the operations, cash flow and results of the Company relating to the unknown duration and impact of the COVID-19 pandemic as well as other uncertainties and risk factors. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. NJMC disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise
SOURCE: New Jersey Mining Company