Nevada Chemicals, Inc. Announces 2nd Quarter 2008 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, 2008. The Company had net income of $1,377,000 or $0.20 
      per share compared to $976,000 or $0.14 per share in the second quarter 
      of 2007. For the six months ended June 30, 2008, the Company had net 
      income of $2,326,000 or $0.33 per share, compared to net income of 
      $1,753,000, or $0.25 per share, for the six months ended June 30, 2007.
    
    
      The Company’s net income for the three months 
      ended June 30, 2008 increased $401,000 or 41% to $1,377,000 as compared 
      to $976,000 during the same period in 2007. The increase in income is 
      due primarily to the reduction of the Canadian and U.S. tax accrual 
      reserves and, to a lesser extent, the increased net income of our joint 
      venture, Cyanco.
    
    
      “We are encouraged by our results and 
      accomplishments this quarter,” said Day. “During 
      this past quarter we announced the major expansion of our joint venture 
      Cyanco, as a result of additional secured business. We increased our 
      dividend to the shareholders 11% to $0.10, and we received positive 
      notification on our U.S. and Canadian tax appeals which allowed us to 
      reduce the liability we had accrued.”
    
    
      The Company continues its research and development on engineered 
      solutions that can enhance the production process at its joint venture. 
      These engineered solutions are being incorporated into the new expansion 
      facility which will reduce the consumption of our raw materials and 
      increase the overall throughput of the facility. The Company anticipates 
      continued volatility in the cost of raw materials as the price of energy 
      continues to vary. Cyanco continues to see increases in its spot or 
      short-term contract sales, which seem to be a result of the strong gold 
      prices.
    
    
      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 18 
      years.
    
    
      
        
          
            NEVADA CHEMICALS, INC.
          
        
      
      
        
          
            CONDENSED CONSOLIDATED STATEMENT OF INCOME
          
        
      
      
        
          
            AND BALANCE SHEET DATA (UNAUDITED)
          
        
      
      
        
           
        
      
      
        
        
        
           
        
        
           
        
        
          Three Months EndedJune 30,
        
        
           
        
        
          Six Months Ended June 30,
        
      
      
        
        
        
        
        
        
        
           
        
        
          2008
        
        
           
        
        
           
        
        
          2007
        
        
           
        
        
           
        
        
          2008
        
        
           
        
        
           
        
        
          2007
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
          
            Revenues and Equity in Earnings of Joint Venture
          
        
        
        
        
        
        
          
            $
          
        
        
          
            1,913,000
          
        
        
        
        
          
            $
          
        
        
          
            1,643,000
          
        
        
        
        
          
            $
          
        
        
          
            3,517,000
          
        
        
        
        
          
            $
          
        
        
          
            2,739,000
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Income before provision for income taxes
          
        
        
        
        
        
        
          $
        
        
          
            2,111,000
          
        
        
        
        
          $
        
        
          
            1,472,000
          
        
        
        
        
          $
        
        
          
            3,560,000
          
        
        
        
        
          $
        
        
          
            2,434,000
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
        
        
          $
        
        
          
            1,377,000
          
        
        
        
        
          $
        
        
          
            976,000
          
        
        
        
        
          $
        
        
          
            2,326,000
          
        
        
        
        
          $
        
        
          
            1,753,000
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Earnings per Common Share Assuming Dilution
          
        
        
        
        
        
        
          
            $
          
        
        
          
            0.20
          
        
        
        
        
          
            $
          
        
        
          
            0.14
          
        
        
        
        
          
            $
          
        
        
          
            0.33
          
        
        
        
        
          
            $
          
        
        
          
            0.25
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders’ Equity
        
        
        
        
        
        
          $
        
        
          
            26,808,000
          
        
        
        
        
          $
        
        
          
            23,676,000
          
        
        
        
        
          $
        
        
          
            26,808,000
          
        
        
        
        
          $
        
        
          
            23,676,000
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Assets
        
        
        
        
        
        
          $
        
        
          
            28,858,000
          
        
        
        
        
          $
        
        
          
            26,339,000
          
        
        
        
        
          $
        
        
          
            28,858,000
          
        
        
        
        
          $
        
        
          
            26,339,000
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Weighted Average Common Shares Outstanding – 
            Fully Diluted
          
        
        
        
        
        
        
        
        
          
            6,998,000
          
        
        
        
        
        
        
          
            7,004,000
          
        
        
        
        
        
        
          
            6,994,000
          
        
        
        
        
        
        
          
            7,002,000
          
        
      
    
    
      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.