Nevsun Resources Ltd TSX:NSU reported $39.6 million 2Q net income, $0.19 per share, on revenues of $147.7 million (all figures in US dollars). This compares to 2Q 2011 net income of $35.3 million, $0.18 per share, on revenues of $136.1 million. Net income for the first six months of 2012 was $80.8 million, $0.40 per share, on revenues of $297.1 million. This compares to the equivalent period in 2011 of $47.1 million net income, $0.24 per share, on revenues of $190.4 million. Cash and equivalents were $369.4 million on June 30, compared to $347.6 million on December 31, 2011.
Nevsun mined 500,000 tonnes grading 6.04 grams per tonne gold for production of 87,000 ounces of gold at $253 per ounce in 2Q. Six-month production was 169,000 ounces at $265 per ounces. This compares to 2Q 2011 production of 93,000 ounces at $305 per ounce and production for the first six months of 2011 of 168,000 ounces at $304 per ounce. Gold production guidance for 2012 has increased from 240,000 to 260,000 ounces to 280,000 to 300,000 ounces.
Nevsun operates in Eritrea in northeast Africa. Its main project is its gold-silver-copper-zinc Bisha mine. Its other properties are the Mogoraib-Hambok copper-zinc-gold-silver project and the North West Zone (gold-silver-copper-zinc), located 1.2 kilometres from Bisha. The company has completed a 13,500-meter drill program at the North West Zone and expects a resource estimate in the first half of 2013.
by Kevin Michael Grace