Northland Resources S.A. reported consolidated unaudited earnings and operating results for the first quarter ended March 31, 2014. For the quarter, the company reported sales of $40.7 million compared to $5.7 million a year ago. Net loss was $32.3 million or $0.30 per share compared to $39.4 million or $7.56 per share a year ago. Net sales and deliveries were negatively affected by production losses during the fourth quarter of 2013 and the first quarter of 2014. The operating loss in the first quarter of 2014 was $40.2 million, compared to $39.6 million in the first quarter of 2013. Operating loss includes $6.6 million non-recurring cost from the termination of the contract with the logistics coordination service provider. Net financial items were $8.3 million positive in the first quarter of 2014, compared to $0.8 million in the first quarter of 2013. Net financial items were positively affected by $4.7 million foreign exchange gains, $9.4 million change in payment assumptions of long term loans and $5.5 million fair valuation gain of second lien bond. Net loss excluding one-off impacts was $25.7 million compared to $39.4 million a year ago.

For the quarter, the company announced ore to concentrator WMT of 1,285,000 tonnes and ore to concentrator DMT was 1,221,000 tonnes. Average Fe-grade was 25.6%. Concentrate produced WMT was 424,000 tonnes and Concentrate produced DMT was 394,000 tonnes. Average Fe-grade was 69%.

For the year 2014, the company is expected to reach a production capacity of 3.9 million dry metric tons (DMT) per year.