Nevada Chemicals, Inc. Announces 2nd Quarter 2007 Earnings

  
    
  
  
    
      John T. Day, President and Chief Executive Officer of Nevada Chemicals, 
      Inc. (NASDAQ:NCEM), today announced earnings for the second quarter 
      ended June 30, 2007. The Company had net income of $976,000 or $0.14 per 
      share compared to $241,000 or $0.03 per share in the second quarter of 
      2006. For the six months ended June 30, 2007, the Company had net income 
      of $1,753,000 or $0.25 per share, compared to net income of $1,319,000, 
      or $0.19 per share, for the six months ended June 30, 2006. Net income 
      for the three months and six months ended June 30, 2007 increased 305% 
      and 33%, respectively.
    
    
      Year over year earnings comparisons show that Nevada Chemicals is ahead 
      of results for 2006, primarily a result of the reduction in provision 
      for income tax expense as compared to 2006. Stockholders equity has 
      increased 6% as compared to the June 30, 2006 and the Company announced 
      a 12.5% increase in the dividend during the quarter ended June 30, 2007 
      as compared to the prior year quarter. Revenues and profitability of 
      Cyanco, the Company’s joint venture, were down 
      compared to the prior year periods. Raw materials used by the joint 
      venture continue to be volatile as the price of energy continues to 
      vary. “At the present gold price levels we 
      continue to observe an interest in the local mining ventures to develop 
      discovered ore bodies. However, we have seen some changes in mining 
      operations and activities due to seasonal variations, changes in 
      operations due to complex ore bodies, challenges of start up and 
      discontinued mining activities, all of which can cause variations in 
      product usage, such as the decreased usage we have experienced in the 
      first six months of 2007. Since many of these new projects are 
      associated with technically difficult mining and metallurgical 
      conditions, the length of time to start-up and delays have increased,” 
      said Day.
    
    
      Cyanco is a 50/50 joint venture company of Nevada Chemicals, Inc. and 
      CyPlus Corporation. Cyanco has produced and marketed liquid sodium 
      cyanide to the western United States gold mining region for the past 17 
      years.
    
    
      
        
          
            NEVADA CHEMICALS, INC.
          
        
      
      
        
          
            CONDENSED CONSOLIDATED STATEMENT OF INCOME
          
        
      
      
        
          
            AND BALANCE SHEET DATA (UNAUDITED)
          
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three Months EndedJune 30,
        
        
        
        
          Six Months Ended June 30,
        
      
      
        
        
        
           
        
        
          2007
        
        
        
        
           
        
        
          2006
        
        
        
        
           
        
        
          2007
        
        
        
        
           
        
        
          2006
        
      
      
        
          
            Revenues and Equity in Earnings of Joint Venture
          
        
        
          
            $
          
        
        
          
            1,643,000
          
        
        
        
        
          
            $
          
        
        
          
            2,043,000
          
        
        
        
        
          
            $
          
        
        
          
            2,739,000
          
        
        
        
        
          
            $
          
        
        
          
            3,811,000
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income before provision for income taxes
        
        
          $
        
        
          1,472,000
        
        
        
        
          $
        
        
          1,678,000
        
        
        
        
          $
        
        
          2,434,000
        
        
        
        
          $
        
        
          3,285,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
          $
        
        
          976,000
        
        
        
        
          $
        
        
          241,000
        
        
        
        
          $
        
        
          1,753,000
        
        
        
        
          $
        
        
          1,319,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Earnings per Common Share Assuming Dilution
          
        
        
          
            $
          
        
        
          
            0.14
          
        
        
        
        
          
            $
          
        
        
          
            0.03
          
        
        
        
        
          
            $
          
        
        
          
            0.25
          
        
        
        
        
          
            $
          
        
        
          
            0.19
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders’ Equity
        
        
          $
        
        
          23,676,000
        
        
        
        
          $
        
        
          22,322,000
        
        
        
        
          $
        
        
          23,676,000
        
        
        
        
          $
        
        
          22,322,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Assets
        
        
          $
        
        
          26,339,000
        
        
        
        
          $
        
        
          27,072,000
        
        
        
        
          $
        
        
          26,339,000
        
        
        
        
          $
        
        
          27,072,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Weighted Average Common Shares Outstanding – 
            Fully Diluted
          
        
        
        
        
          
            7,004,000
          
        
        
        
        
        
        
          
            6,973,000
          
        
        
        
        
        
        
          
            7,002,000
          
        
        
        
        
        
        
          
            6,936,000
          
        
      
    
    
      Note: The foregoing contains “forward looking” 
      statements that are pursuant to the safe harbor provisions of the 
      Private Securities Reform Act of 1995. Editors and investors are 
      cautioned that forward looking statements involve risks and 
      uncertainties that may affect the Company’s 
      business prospects and performance. These include, but are not limited 
      to economic, competitive, governmental, technological and other factors 
      discussed in the Company’s reports to 
      shareholders and periodic filings with the Securities and Exchange 
      Commission.