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Nord Resources announces the result of Q3 2012
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Wednesday, 21 Nov 2012

Nord Resources Corporation announced its unaudited financial results for the Q3 ended September 30th 2012. The unaudited condensed consolidated financial statements were prepared in accordance with US generally accepted accounting principles and all currency amounts are in US dollars.

In the 2012 Q3 and first 9 months of 2012, Nord incurred abnormal production costs amounting to USD 1.8 million and USD 6.4 million respectively, resulting in an average cost of copper sold during the periods of USD 4.55 and USD 5.03 per pound respectively.

The average realized price of copper sold during the 2012 Q3 and first 9 months was USD 3.53 and USD 3.62 per pound, respectively. The prices realized in 2012 are considerably lower than the average prices in the comparable 2011 periods of USD 4.00 and USD 4.19, respectively. The lower copper prices significantly contributed to the net loss that the company incurred for the 2012 periods.

Mr Wayne Morrison CEO and CFO of Nord Resources said that "Since July 2010, when Nord suspended mining new ore, our operations have consisted of leaching copper from the material previously placed on our three pads and processing it through the Johnson Camp Mine's SX-EW plant. As expected, while this assists us in operating with minimal, tightly controlled costs our copper production is in steady decline."

Mr Morrison said that "We are continuing to explore potential, financing options that would enable us to restructure our debt and provide us with the capital needed for constructing a new leaching pad. With this accomplished we would resume mining and processing new ore from the Johnson Camp Mine's deposits. We continue to work on obtaining new financing. However, we cannot be certain that our efforts will prove successful."

He said that "We continue to plan the building of a new leach pad, about equal in size to two of our existing three pads and we expect that this will enable us to achieve our target production rate of 25 million pounds of copper per year. The new pad requires an estimated capital investment of approximately USD 18 million.

He added that Nord's financial results through the first nine months of 2012 reflect our declining production, expense controls, the fact that the average price of copper has declined during 2012 and the need to recognize abnormal production costs resulting from the underutilization of our plant. We expect these conditions to continue through the balance of 2012.

Source - Nord Resources Corporation


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