First Nickel Inc. Announces Audited Earnings and Operating Results for the Fourth Quarter and Year Ended December 31, 2014; Provides Capital Expenditures Guidance for the Year 2015
For the quarter, the company reported revenues of CAD 19.6 million, showed a significant increase over the prior-year period, CAD 17.6 million. The increase reflects higher average realized nickel prices in the fourth quarter of 2014, combined with higher production (18% increases in tonnes from the fourth quarter of 2013).
For the year, the company's ore production was 248,573 tonnes compared with 245,903 tonnes a year ago. Contained nickel production was 13,320,436 pounds compared with 12,874,583 pounds a year ago. Contained copper production was 7,681,836 pounds compared with 7,627,710 pounds a year ago. In the year ended December 31, 2014, Lockerby produced 13.3 million pounds of contained nickel, at an average head grade of 2.43% Ni and 7.7 million pounds of contained copper, at an average head grade of 1.40% Cu. Contained-nickel production in the year-ended December 31, 2014 was 3% greater than the 12.9 million produced in 2013, reflecting a 2% increase in average nickel head grades mined and a 1% increase in ore tonnes produced. Total contained nickel pounds for the year was slightly below the lower end of the 2014 forecasted range of 13.5 to 15.1 million, while contained copper pounds for the year was in the middle of the 7.2 to 8.0 million forecasted range. The 2014 forecast had been updated at the end of the second quarter as a result of the May 6, 2014 accident. Development under backfill and blast-hole drilling was a key element of the Lockerby mine plan. After the May 6, 2014 accident, this stoping method was halted while an investigation was conducted.
For the fourth quarter of 2014, Lockerby produced 4.1 million pounds of contained nickel and 2.4 million pounds of contained copper. Production of 4.1 million contained nickel pounds during the three months ended December 31, 2014 represents a 23% increase in nickel production over the third quarter of 2014, reflecting a 28% increase in tonnes produced, partially offset by 5% lower average nickel grades. Contained-nickel production in the fourth quarter of 2014 was 11% greater than the 3.7 million pounds produced in fourth quarter of 2013, reflecting 7% increases in ore tonnes produced and average nickel head grades mined.
For 2015, the company expects capital expenditures in the range of CAD 6.5 million. General and administrative expenses (excluding share-based compensation) and exploration expenditures are projected to be approximately CAD 3.6 million and CAD 0.9 million, respectively, in 2015. The increase in expected exploration expenditures is a result of the restart of exploration diamond drilling at Lockerby as part of the Lockerby Restructuring Plan.