In mid-January, Nord announced the election of John Champagne as president and chief executive officer; he replaces W.P. Carson, who resigned (though he will continue to act as a consulting geologist).
Nord raised US$1.2 million via private placements between Nov. 7, 2000, and Jan. 29, 2001. The company says this is enough to fund operations at existing levels until March. With all its purchase warrants exercised, up to 40% of the company’s issued and outstanding stock was involved in the offerings. The proceeds were earmarked for working capital expenses, including “significant expenditures” in the near term related to environmental remediation at the Johnson Camp mine. The company says additional funding will be required in order to continue operations after March and to fund its remediation obligations.
In the third quarter of 2000, Nord posted a net loss of US$867,000, compared with net earnings of $2.4 million in the same period of 1999. For the nine months ended Sept. 30, 2000, the company lost $3.3 million, compared with net earnings of US$286,000 a year earlier. Sales were US$530,000 for the third quarter of 2000 and US$990,000 for the last nine months. Nord purchased the 2,723-acre mine site in June 1999, when copper prices were US65 per lb. The price is currently hovering about US80 per lb. With an investment of US$13.5 million, Nord says it could reopen the mine and produce 19.7 million lbs. annually over 11 years. Operating costs are pegged at US63 per lb. over the life of the mine, including US21 per lb. for mining, US32 for processing and US10 for administration and other expenses. Pretax cash flow is estimated at US$43 million over the mine life.
Nord’s 28.5%-owned affiliate,
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