Nevada Copper Ends Q2 2021 With US$14.1 Million Net Loss, Gets US$2.4 Million Payroll Loan Waived
Nevada Copper Corp. (TSX: NCU) announced on Friday after closing bell its financial results for the second quarter ended June 30, 2021. While the released statement itself did not discuss the company’s quarter-end figures, the financial statement filed showed the company incurring US$14.1 million net loss.
The quarterly loss translates to US$0.01 per share and is a decline from Q2 2020’s net loss of US$2.5 million. The biggest share of the company’s quarterly expenses came from losses due to changes in derivative fair value amounting to US$9.5 million.
The company ended the quarter with a cash and cash equivalents balance of US$9.3 million coming from US$21.8 million balance at the start of the quarter. Development costs for mineral properties and purchase of plant and equipment amounting to US$69.1 million became a huge factor in the quarter’s cash burn. Furthermore, the firm’s current assets came in at US$9.7 million while current liabilities ended at US$265.4 million.
In its updates, the mining firm also shared that it recently received a US$15 million loan from its largest shareholder, Pala Investments Limited. Following this, the investment firm also agreed to provide Nevada Copper with additional loans up to US$27 million, US$19 million of which has already been received by the company. After former CEO Mike Ciricillo stepped down on August 14, taking the position of interim is Mike Brown who has been a non-executive director of Nevada Copper for 4 years and is currently a technical advisor of Pala Investments after serving as the investment firm’s managing director — technical for more than 3 years.
Days before the release of the quarterly financials, the company also received approval for the forgiveness of its US$2.4 million loan with the US government as part of its Payroll Protection Program to assist companies in retaining their employees amidst the COVID-19 pandemic.
Nevada Copper last traded at $0.165 on the TSX.
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