Liberty Mines Inc., a mid-tier producer of nickel in the Timmins area, reported revenue for 2012 was $8.99 million, up from $2.1 million for 2011.
Net loss for 2012 was $64.4 million or $0.31 per basic and fully diluted share. The loss included a mineral properties impairment expense of $29.2 million, interest on long-term debt of $10.6 million. In 2011, Liberty recorded a net loss of $26.8 million or $0.14 per basic and fully diluted share. Liberty's mining and milling operations were fully functional in 2012 for four-and-a-half months.
"Bolstered by a new management team and strong support from our Timmins operation, we achieved each of our key milestones in the first half of 2012. Most notably, we restarted production in Q1, stabilized and increased production in Q2, and then we were faced with rapidly declining nickel prices in Q3. As a result, we had to make the difficult decision to move to a care and maintenance mode in mid-August until Nickel prices increase and stabilize", said Chris Stewart, president and CEO of Liberty Mines.
The company also conducted an exploration program consisting of 7,591 metres of drilling during 2012, focused on deep exploration of the Hart Deposit.
In August, Liberty implemented a care and maintenance program at its Redstone and McWatters Mines due to the declinbe in nickel prices.
In January, the company announced that it had identified the presence of chrysotile in its ore body at its McWatters Mine. As chrysotile, a form of asbestos, is a designated substance under Ontario health and safety regulations, Liberty is investigating these matters further and is taking all required measures.
The company expects to conduct additional testing and further independent analysis to determine the impact on the economic feasibility of restarting mine operations at the McWatters Mine having regard to this information.
