Nevada Copper Corp. (TSX: NCU) announced its financial results for the second quarter ended June 30, 2022. The mining firm recorded a revenue of US$5.0 million, up from Q2 2021’s US$2.1 million.
But with production costs higher than the revenue, the firm ended with a gross loss of US$11.9 million, wider than last year’s loss of $9.6 million. Thanks to a US$15.1 million derivative fair value gain, the company then ended with a net income of US$2.3 million compared to a net loss of $23.7 million last year. This translates to US$0.01 earnings per share.
The company ended the quarter with a cash and cash equivalents balance of US$3.9 million coming from a starting balance of US$51.6 million at the start of the year, stemming from losses and a US$36.7 million in development costs incurred throughout the first six months of the year. This led to the firm’s current assets ending at US$7.2 million while current liabilities ended at US$366.5 million.
In July 2022, the company’s reports indicated it is in default with certain financing and contractual agreements and is said to be in discussions with creditors for possible sourcing of additional funds.
Last year, the company 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 $0.28 on the TSX.
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