Nord Resources Reports Profit For 2008 Second Quarter

"In the second quarter, we more than doubled our sales of copper cathodes reflecting the fact that this was our first full quarter of production from leaching the existing ore heaps at the Johnson Camp Mine, after achieving commercial production on February 1," said John Perry, President and Chief Executive Officer.

Second Quarter Profitable as Production Doubles from First Quarter

Second-quarter 2008 revenues were $3.1 million, compared with none in the 2007 period and more than double the $1.5 million of the first quarter of 2008. The sales growth was the result of increased production of copper cathodes. Nord sold 836,198 pounds of copper cathode in the second quarter of 2008 compared to 421,905 pounds in the first quarter. The Company realized an additional $209,907 (credited to development costs) from the sale of 58,723 pounds of copper cathodes produced during the first quarter of 2008, prior to the commencement of commercial production on February 1, 2008. Nord did not have any revenue in 2007 when the Johnson Camp Mine was on a care and maintenance program.

First-half 2008 revenues were $4.6 million (none in 2007) from the sale of 1,258,103 pounds of copper. Cost of sales amounted to $2.0 million in the 2008 second quarter and totaled $3.0 million for the six months ended June 30, 2008. Operating costs incurred prior to beginning commercial production were capitalized as mine development costs, net of the realized value of the copper produced during that period.

General and administrative (G&A) expenses were $0.8 million for the 2008 second quarter, compared with $1.5 million a year earlier. Included in the 2007 quarter, is $0.5 million in expenses for drilling at another property. For the first half of 2008, G&A expenses amounted to $2.0 million, compared with $2.4 million in the first six months of 2007. In 2007, the Company incurred $0.6 million of drilling expenses at another property. The decrease between year to year G&A expenses was partially offset by a $194,326 increase in expenses related to the listing of the Company's shares on the Toronto Stock Exchange in January 2008, and the related registration of certain shares under the Securities Act of 1933, as amended.

Income from operations for the second-quarter 2008 amounted to $0.2 million, compared with a loss in the 2007 quarter of $1.5 million. For the first half of 2008, the Company had a loss from operations of $0.5 million, compared with a loss of $2.5 million in the 2007 period.

Net income for the second-quarter 2008 was $0.1 million (income of $0.00 per basic and diluted share), compared with a net loss of $1.5 million (loss of $0.04 per basic and diluted share) in the 2007 period. The weighted average number of common shares outstanding was 67,081,882 in the 2008 quarter (69,985,450 diluted), compared with 34,434,630 (basic and diluted) in the 2007 period. For the first half of 2008, the Company's net loss was $0.6 million ($0.01 per basic and diluted share), compared with a net loss in the first six months of 2007 of $1.5 million ($0.04 per basic and diluted share).

The Company currently estimates the capital cost to reactivate the Johnson Camp Mine to be approximately $34 million, of which the Company has spent $21.4 million as of June 30, 2008. As of June 30, 2008, the Company had $13 million remaining undrawn under the $25 million secured term-loan credit facility arranged in June 2007 with Nedbank Limited. Based on its current assessments, outlook and forecasts with respect to the Johnson Camp Mine, the Company believes that it has access to sufficient funds to meet its estimated capital requirements for the reactivation plan of the Mine. -- www.cnxmarketlink.com