VANCOUVER, BRITISH COLUMBIA â€” SEPTEMBER 17, 2010) – New Pacific Metals Corp. (TSX-V: NUX) (the “Company”) announces its audited consolidated financial results for the fourth quarter and year ended June 30, 2010. All figures are expressed in Canadian Dollars, other than share data.
2010 FINANCIAL HIGHLIGHTS
For the year ended June 30, 2010, the Company incurred a loss of $1,751,435, or $0.05 per share (year ended June 30, 2009 – $925,846 or $0.03 per share). Compared to last year, the loss increased by $825,589 mainly due to:
– Foreign exchange loss of $16,752 was recorded during the current year, while a foreign exchange gain of $438,961 was recorded in last year.
– Interest income decreased by $244,988 to $66,476 (2009 – $311,464) due to lower interest rate and less daily average cash balances.
– Gain on disposal of mineral property interest decreased by $390,472 to $15,330 (2009 – $405,802)
– Loss increase caused by above factors were offset by the decrease of overall expenses. Not including foreign exchange loss (gain), the overall expenses decreased by $330,142 to $1,810,838 (2009 – $2,140,980) mainly due to decreased stock-based compensation expenses recorded during the year.
During the year, the Company incurred total exploration expenditures of $1,218,927 (2009 – $ 2,536,777) mainly for the Huaiji Project located in Guangdong, China. A total of $1,106,751 was recovered from sales of tunneling by-product ore to a third party smelter on the Huaiji Project.
As at June 30, 2010, the Company had a working capital position of $8,964,681 (June 30, 2009 – $11,003,475). Cash and cash equivalents plus short term investments, as at June 30, 2010, amounted to $9,650,273 (June 30, 2009 – $11,357,917) and are unencumbered.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
For the quarter ended June 30, 2010, the Company incurred a loss of $462,731 or $0.01 per share (three months ended June 30, 2009 – $409,398 or $0.01 per share). During the quarter, the Company recorded total expenses of $460,374, a decrease of $183,582 compared to $643,956 in the same period last year. The decrease in expenses was mainly attributable to less stock-based compensation recorded during the quarter. During the quarter, no gain was recorded on disposal of mineral property interests, while a total of $188,242 gain on disposal of mineral property interest was recorded in the same period last year.
The Company’s audited Consolidated Financial Statements and Management’s Discussion and Analysis are available for review on our website at www.newpacificmetals.com and through SEDAR at www.sedar.com.
About New Pacific Metals Corp.
New Pacific is engaged in the exploration and development of mineral resources, gold-poly-metallic projects in China and other jurisdictions. New Pacific has extensive experience in implementing high grade resource development projects.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.