Northland Resources Turns To Profit In 2013; Identifies Liquidity Shortfall

(RTTNews) - Northland Resources S.A. (NPK, NAU.TO), a producer of iron ore concentrate, reported net loss for the fourth quarter of $35.2 million or $3.84 per share, wider than net loss of $5.6 million or $1.06 per share in the year-ago period.

Excluding one-off restructuring impacts, net loss for the quarter was $37.2 million, compared to loss of $5.6 million in the prior-year quarter.

Net sales for the quarter were $42.0 million and deliveries amounted to 346 thousand DMT. This compared to net sales of $0.2 million in the year-ago period.

For fiscal 2013, Northland's net income was $236.47 million or $2.66 per share, compared to net loss of $24.81 million or $5.25 per share in the previous year.

Excluding $382.4 million in one-off income from fair valuation of the second lien bond and long term accounts payables related to financial restructuring of the company, underlying net loss for the year was $145.9 million or $1.64 per share, compared to net loss of $24.8 million or $5.25 per share in the prior year.

Net sales for the year were $97.71 million and deliveries were 849 thousand DMT.

Northland Resources said that at the end of 2013, it identified a funding and a liquidity shortfall that it is planning to address by seeking for additional funding from current bondholders, shareholders, main suppliers as well as from potential new investors.

The company added that in the event the contemplated funding activities do not materialize or be delayed, it could challenge the company's ability to continue its business as a going concern as well as its ability to realize its assets and discharge its liabilities in the normal course of business.