Almonty Announces the Filing of its Financial Statements and MD&A for the Three and Nine Month Periods Ended June 30, 2015
August 27, 2015 (Source: Business Wire) – NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
– Revenue of $8.7 million and Earnings from mining operations of $1.6 million for the third quarter of 2015
Almonty Industries Inc. (“Almonty” or the “Company”) (TSX-V: AII) today announced the filing of its unaudited interim condensed consolidated financial statements and management discussion & analysis (“MD&A”) for the three and nine month periods ended June 30, 2015. Unless otherwise indicated, all currency amounts contained in this news release are in thousands of Canadian dollars.
The following financial information is for the periods from April 1 to June 30, 2015; from April 1 to June 30, 2014; from October 1 to June 30, 2015; from October 1 to June 30, 2014; and, from January 1, to March 31, 2015. Historical information has been restated to reflect the new accounting policies that have been adopted.
Readers are referred to Note 20 of the Company’s unaudited interim condensed consolidated financial statements for the three and nine month periods ended June 30, 2015 for further details.
|Three Months||Three Months||Three Months|
|Mine production costs||5,550||2,397||8,376|
|Depreciation and amortization||1,556||2,609||2,616|
|Earnings from mining operations||1,625||2,362||(721)|
|General and administrative costs||1,239||576||1,547|
|Net other expense (income)||(6)||324||–|
|Non-cash compensation costs||116||–||150|
|Earnings (loss) before the under noted items||276||1,462||(2,418)|
|Other (gain) loss realized (fx, asset disposal, other)||(258)||15||542|
|Deferred tax provision||(62)||–||–|
|Net income (loss) for the period||246||1,335||(3,198)|
|Income (loss) per share basic||$||0.00||$||0.04||($0.07)|
|Income (loss) per share diluted||$||0.00||$||0.04||($0.07)|
|Cash flows provided by (used in) operating activities||376||3,776||(186)|
|Cash flows provided by (used in) investing activities||(5,413)||(2,691)||(3,104)|
|Cash flows provided by (used in) financing activities||(1,264)||2,776||3,598|
|Nine Months||Nine Months|
|Mine production costs||20,262||7,348|
|Depreciation and amortization||6,133||4,240|
|Earnings from mining operations||1,332||9,570|
|General and administrative costs||4,126||1,884|
|Net other expense (income)||(44)||428|
|Non-cash compensation costs||379||56|
|Earnings (loss) before the under noted items||(3,129)||7,202|
|Other (gain) loss realized (fx, asset disposal, other)||296||133|
|Deferred tax provision||(62)||–|
|Net income (loss) for the period||(4,233)||6,765|
|Income (loss) per share basic||($0.09)||$||0.18|
|Income (loss) per share diluted||($0.09)||$||0.18|
|Cash flows provided by (used in) operating activities||(1,290)||5,277|
|Cash flows provided by (used in) investing activities||(11,445)||(6,098)|
|Cash flows provided by (used in) financing activities||1,527||3,860|
The following table sets forth a summary of the Company’s consolidated financial position as of the date presented:
|Capital lease obligations||298||295|
|Outstanding shares (‘000)||51,794||48,996|
|Weighted average outstanding shares (‘000)|
|Fully diluted (treasury method)||50,411||43,149|
|Closing share price||$||0.68||$||0.70|
Lewis Black, President and CEO of Almonty, commented “The commodity price continued to decline during Q3, 2015, down over 14.2% when compared to Q2 2015 and over 33.2% since Q4 2014. Our continued focus on cost reductions at Los Santos and operating improvements at Wolfram Camp enable Almonty to show positive cash flow from operations during the quarter. The optimization of Wolfram Camp is ongoing and we expect to show continued improvement in unit production costs there once we have completed the optimization process. We are also encouraged by the strong show of support received from the shareholders of Woulfe Mining Corp. and look forward to completing the acquisition of Woulfe as soon as practical.”
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The principal business of Toronto, Canada based Almonty Industries Inc. (TSX-V: AII) is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Wolfram Camp Mine in north Queensland, Australia. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Wolfram Camp Mine was acquired by Almonty in September 2014 and is located approximately 130 km west of Cairns in northern Queensland, Australia and produces tungsten and molybdenum concentrate. Almonty also has an option to acquire a 100% ownership interest in the Valtreixal tin-tungsten project in north western Spain and on June 4, 2015 Almonty acquired an interest in and the right to appoint the majority of the Board of Woulfe Mining Corp. The principal asset of Woulfe Mining Corp is the Sangdong tungsten mine located in Gangwon Province, Republic of Korea. Almonty intends to acquire Woulfe Mining Corp through a court approved plan of arrangement that is expected to close by the end of August 2015. Management and certain members of Almonty’s Board of Directors led the turnaround and eventual sale of Primary Metals Inc., the operator of the Panasqueira Tungsten Mine in Portugal from 2003 to 2007. Further information about the Company’s activities may be found at www.almonty.com and under the Company’s profile at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. This press release contains forward-looking statements and information including, without limitation, continued cost reductions, the future cost structure and profitability of the Wolfram Camp Mine and matters related to the completion of the Plan of Arrangement with Woulfe Mining Corp. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.
The forward-looking statements and information in this press release include information relating to the intentions of management. Such statements and information reflect the current view of Almonty with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>