Canadian gold miner
Nevsun Resources Ltd.
) posted earnings of 3 cents per share in the second quarter of
2013, down 84% from 19 cents posted in the year ago quarter. The
results missed the Zacks Consensus Estimate by a penny.
Revenues for the second quarter decreased 63% year over year to
$54.8 million. Nevsun produced 34,900 ounces of gold compared
with 87,000 ounces in the year ago quarter. The company, earlier
in Jul 2013, revealed production results for the quarter. Nevsun
sold 36,200 ounces in the quarter, down from 87,500 ounces a year
ago due to the lower grades and mill recoveries.
Gold cash costs per ounce was $692 which included $138 per
ounce in silver by-product credits compared with $253 per ounce
in the second quarter of 2012 which included $89 per ounce in
silver by-product credits. The year-over-year increase in gold
cash cost per ounce represents reduction in gold ounces sold and
the increase in mining and milling costs per ounce produced,
which was partly offset by higher silver by-product credits.
Nevsun was ahead of schedule on the copper plant commissioning
and also completed copper flotation plant on time and under
Nevsun maintains a strong balance sheet with cash and cash
equivalents of $343 million, no debt and a superior deposit. The
company also announced a 40% hike in semi-annual dividend to 7
cents per share.
Despite challenges in the mining market, Nevsun remains
optimistic about external growth opportunities. The company's
Bisha mine in Eritrea, East Africa, is expected to become
fruitful in early 2014 and it has a supportive partner in the
Government of Eritrea.
Nevsun currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks
Avalon Rare Metals Inc.
BHP Billiton plc
Denison Mines Corp.
) with all retaining a Zacks Rank #2 (Buy).
AVALON RARE MTL (AVL): Free Stock Analysis
BILLITON ADR (BBL): Free Stock Analysis
DENISON MINES (DNN): Free Stock Analysis
NEVSUN RESOURCS (NSU): Free Stock Analysis
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