Newmarket Gold fka NMI

[4Godnwv]

2015 Third Quarter ("Q3 2015") and Nine Months ("9M 2015") Highlights

(All figures are in United States ("U.S.") dollars, unless stated otherwise)

Strong Consolidated Production: Q3 2015 represented the ninth consecutive quarter of production over 53,000 ounces. Gold production of 53,817 ounces, included record production of 32,793 ounces from the Company's flagship asset, Fosterville Gold Mine. The Company experienced record production in the first 9M 2015 of 169,491 ounces, up 3.7% year-over-year.

Decreasing Costs: Operating cash costs decreased 20.4% to $715 per ounce sold in Q3 2015 from Q3 2014. All-in sustaining costs ("AISC") decreased 18.0% to $1,011 per ounce sold in Q3 2015 from Q3 2014. For the first 9M 2015, operating cash costs averaged $693 per ounce sold, while AISC averaged $984 per ounce sold.

Reaffirming 2015 Production Guidance, Lowering 2015 Cost Outlook: Top end of our FY 2015 production guidance of approximately 220,000 reaffirmed following record quarterly production from Fosterville. Outlook for 2015 operating cash costs has been lowered to $700 - $750 per ounce (prior $780 - $860) and AISC lowered to $970 - $1,020 per ounce (prior $1,020 - $1,100) reflecting an increasing grade and recovery profile, a focus on Company wide cost reductions, and the impact of the weakened Australian dollar.

Operating Cash Flows: 9M 2015 operating cash flow of $65.9 million increased 34.8% year-over-year. Q3 2015 operating cash flow of $11.3 million declined 37.8% from Q3 2014 due to one-time transaction costs associated with the Newmarket Gold and Crocodile Gold amalgamation (the "Transaction"), increased spending on growth projects, and lower gold sales in a continued depressed gold price environment.

Mine Site Discoveries Drive Growth Initiatives: Increased investment in growth exploration programs, with $7.2 million spent to date including $3.8 million in Q3 2015, has resulted in mine site discoveries at Fosterville, Cosmo and Stawell. Investment in growth exploration programs are focused on targets in the project pipeline that can have a significant positive impact on near-term operations.

Cash and Working Capital: Cash balance of $37.2 million, reflecting the impact of one-time transaction cash costs of $3.3 million associated with the Transaction, increased growth exploration spending in Q3 2015 and the translation impact of a weakening Australian dollar. Working capital was $22.6 million, reflecting aforementioned transaction costs, up significantly from December 31, 2014 working capital of $12.6 million.

Net Income Impacted by One-Time Transaction Costs: 9M 2015 net income was $17.5 million or $0.14 per share, which included year-to-date one-time transaction costs of $16.7 million, or $0.14 per share. Excluding the one-time transaction costs, 9M 2015 net income was $34.2 million, or $0.28 per share. During the quarter, one-time transaction costs of $15.1 million (of which $13.4 million are non-cash costs) contributed to a Q3 2015 net loss of $10.3 million or $0.08 per share compared to Q3 2014 net income of $8.6 million or $0.07 per share. Transaction costs accounted for a $0.11 loss per share during Q3 2015. Excluding one-time transaction costs, Q3 2015 net income was at $4.8 million or $0.04 per share.

Read more: http://www.nasdaq.com/press-release/newmarket-gold-delivers-record-production-of-169491-oz-9m-2015-reaffirms-2015-topend-production-20151105-00263#ixzz3qkmKFCi0