New Century Resources Limited (ASX: NCZ) is happy to present before its investors about the company’s successful arrival and initiation of unloading of zinc concentrate through its first shipment from the restarted Century operations.
In the early November 2018, the company’s first concentrate shipment got fully loaded and it began its journey by sailing from Karumba. The company was able to ship the parcel which was 10% above the expectation of the shipment size. The ship was able to parcel around 11,000 tonnes of zinc concentrate. Within a span of 15 months after getting listed to the ASX, these activities signify a major milestone for the Company. Through this, the New Century Resource Ltd has established their possibility of its operations logistics chain. Right from the hydraulic mining to tailings reprocessing, its slurry pipeline system, operations related to port and the transshipment of the concentrate. The company was able to parcel 11,000 tons commissioning grade concentrate to one of the largest smelting group’s in China via ship based on attractive terms and conditions. According to the conditions, there were no penalties for lead or carbon. Only in case of identification of Silica might lead to a penalty.
After the first achievement of its shipping of zinc concentrate, the company is preparing itself for the delivery of its second shipment of zinc concentrate. Also, the company procured bulk export vessel for arrival in Karumba in the month December 2018. For the year ended 30 June 2018, the net loss incurred by the company was $123,310,765. The total asset of the company was $131,287,775 and the total liabilities was $140,990,053. This indicates the poor condition of the company as it is not in a position to meet its long-term obligations. Also, the current asset of the company was $67,707,866 and the current liabilities was $23,692,368. This indicates that the company is in a position to clear its short-term obligations as well as meet its working capital. It was seen that this year the accumulated losses have increased by $289,153,711. This indicates that the shareholder's wealth is being eroded significantly.
The net cash outflow from the operating activities was $20,524,361. The major source of cash outflow was due to the payment made to the suppliers and employees inclusive of GST as well as payment made to the MMG bank guarantee support fees. The net cash outflow from the investing activities was $34,851,629. The major source of cash outflow under this category was due to payment made for the mining lease, payment for bonds and investments and the payment made for property, plant and equipment. The net cash inflow from the financing activities was $96,020,357. The major source of cash outflow under this category was due to the payment made to issue the share. By the end of the year, the net cash and cash equivalent available with the company was $46,249,135.
Also, as per the Q1, 2019 the cash and cash equivalent at the end of the period was $32.195 million. By the end of the day, the market price of the share was A$0.930. Since morning the share price has tumbled down by -4.615% with the market capitalization of A$491.37 million.