Business
Nord Resources Reports Second-Quarter 2010 Results
Nord Resources Reports Second-Quarter 2010 Results
About this update from Red Lake Gold Inc
[{"type":"text","content":"\nNord Resources Reports Second-Quarter 2010 Results\n\n\n Aug. 17, 2010 (Newsfile Corp.) -- Tucson, Arizona--(August 13, 2010) - Nord Resources Corporation (OTCBB: NRDS) Quarterly net loss of $7.2 million and year to date net loss of $6.2 million Results include other expenses of $10.4 million and $11.1 million in the second quarter and year to date, respectively, primarily due to the de-designation of derivatives as cash flow hedges Continuation of copper held in solution inventory in the existing leach pads, combined with a reduction in the amount of mining activity stemming from inadequate working capital prevents Nord from meeting its target to become cash-flow positive in the second quarter Company has begun the implementation of previously announced measures to reduce costs, maximize cash flow, and improve operating efficiencies Company continues to pursue opportunities to restructure its capital and obtain additional financing Preliminary work begun on ore characterization, new column testing and mineralogy to develop a new block model for mine optimization Nord Resources Corporation (OTCBB: NRDS), which reactivated copper mining and processing operations at the Johnson Camp Mine in January 2009, today announced its financial results for the second quarter ended June 30, 2010. The unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles and all currency amounts are in U.S. dollars. Nord’s 2010 second-quarter production of copper and sales rose to 2,729,194 pounds compared with production of 2,421,936 pounds for the first quarter of 2010 and 2,070,024 and 836,781 pounds produced during the second and first quarters of 2009, respectively. The net loss for the second quarter and first half of 2010 are primarily due to the inclusion of $10.4 million and $11.1 million, respectively, in other expenses which are primarily the result of a change in accounting treatment of existing copper derivatives. The change in accounting treatment of copper derivatives, which was due to the Company’s inability to make the requisite payments under the terms of the underlying copper hedge agreement, resulted in recording an unrealized loss on the de-designation of copper hedges of ($13.4 million) for the 2010 second quarter and first six months and a realized loss ...