Northern Vertex Reports Revenue of US $ 16.6 Million for Quarter Ended June 30, 2021

VANCOUVER, BC, August 13, 2021 / PRNewswire / – Northern Vertex Mining Corp. (TSXV: NEE) (OTC Nasdaq Intl: NHVCF) (“Northern Vertex” or the “Company”) a United States-focused gold producer with district-wide exploration potential in the Walker Trend Lane in Arizona and Nevada, is pleased to announce the financial results for the quarter ending June 30, 2021. All figures are in US dollars, unless otherwise specified.

Northern Vertex Mining Corp. logo. (CNW Group / Northern Vertex Mining Corp.) (CNW Group / Northern Vertex Mining Corp.)

Highlights of the quarter ended June 30, 2021

  • Income from $ 16.6 million

  • Cash at end of quarter $ 6.9 million

  • Profit from mining $ 5.0 million before amortization and depletion

  • Gold equivalent production of 7,823 ounces1

  • Gold sales 8,045 ounces

  • Gold equivalent sales of 9,160 ounces1

1Gold equivalent is calculated at a ratio of 75: 1

Michael G. Allen, President of Northern Vertex declared, “The completion of the 3A Heap Leach construction project marks the close of the largest investment project in Moss since mine construction in 2018. The team is now focused on continuous improvement initiatives, including:

  • Additional debottlenecking of the crusher, which has already reduced unit costs by more than 40% year on year, going from a crushing size of 1/4 “to 3/8”,

  • Improve drilling and blasting operating procedures to improve fragmentation and throughput,

  • Improve our mining plan as we progress through our ambitious infill drilling and exploration program, and

  • Reduce operating and overhead costs. “

Three and six consolidated months ended June 30, 2021 Financial results

US $ ‘000 (except amounts per share)

Quarter ended June 30, 2021

Semester ended June 30, 2021

Income

16,590

32,991

Cost of sales (including depreciation and amortization)

(13,848)

(27,129)

Operating profit (loss)

1,504

3 051

Net income (loss)

7411

(834)2

Net earnings (loss) per share (basic)

0.00

(0.00)

1.

Includes a non-cash accounting derivative revaluation gain of $ 805 due to a decrease in the NEE share price which decreased the derivative liability of the warrant ($ 860) and the convertible debenture ($ 236), and offset by the embedded derivative of silver flow ($ 291) due to an increase in the price of silver during the quarter.

2.

Includes a non-cash accounting derivative revaluation loss of $ 834. The loss of $ 3,793 on embedded derivatives of silver flow related to an increase in the price of silver was offset by gains on convertible debenture derivatives of $ 809 and gains on derivatives on warrants of $ 2,150 due to a drop in the NEE share price.

Three and six consolidated months ended June 30th, 2021
Operating statistics

US $ ‘000 (except amounts per ounce)

Quarter ended June 30, 2021

Semester ended June 30, 2021

Average realized price of gold ($ / oz)

1793

1797

Tons of ore extracted

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