TORONTO - New Dawn Mining Corp. (TSX:ND) swung to a loss in the fourth quarter as cost pressures and operational challenges offset higher revenues.
The Toronto-based junior gold miner, focused on operations in Zimbabwe, says its net loss allocated to common shareholders in the quarter was $523,683 or a penny per share, compared with a net profit of $2.4 million or six cents per share in the same 2011 period.
Revenue in the three months ended Sept. 30 was $16.5 million, up 17.3 per cent from $14.1 million the prior year.
However, the company said "continuing cost pressures and certain operational challenges... combined to cause production inefficiencies and resulted in reduced net income for fiscal 2012 as compared to fiscal 2011, as well as a small net loss reported for the quarter ended Sept. 30."
In response to these issues, New Dawn said it had recently "revised its overall near-term operating strategy to a more steady-state production model."
Since implementation of the changes will take several months, the company said it expected results for the quarter ending Dec. 31 to be similar to those of its most recent period.
For the full year, the company reported net income of $2.3 million or five cents per share on revenue of $61.9 million, compared with net income of $4.3 million or 10 cents per share on revenue of $38.3 million in fiscal 2011.
Stock in New Dawn was down 16 cents, or 16.33 per cent, at 82 cents in afternoon trading Thursday on the Toronto Stock Exchange.