Matamec Reports First Quarter 2013 Financial Results
May 30, 2013 (Source: Marketwire) — Matamec Explorations Inc. (“Matamec” or the “Company”) (TSX VENTURE:MAT) (OTCQX:MHREF) today reported its financial results for the quarter ended March 31, 2013. All numbers are reported in Canadian dollars unless otherwise stated.
“With 85% of the bulk work associated with the Kipawa feasibility study now completed and the continued financial support demonstrated by Toyotsu, the Company is well positioned financially to achieve its goal of becoming the next global heavy rare earth producer,” said Andre Gauthier, President and CEO of Matamec Explorations.
- Net loss for the quarter of $274,336 or ($0.002 per share), compared to a net loss of $691,704 or ($0.006 per share) in the first quarter of 2012;
- Working capital of $4.62 million including cash and cash equivalents of $2.44 million;
- Current assets for the quarter totalled $6.29 million compared to $5.99 million in the first quarter of 2012;
- Received as of May 16, 2013 from Toyotsu, $6.94 million of the $7.5 million or $15.44 million of the maximum $16.0 million for the completion of a definitive feasibility study on the Kipawa deposit;
- Matamec to receive reimbursed tax credits for qualifying exploration expenses in the amount of $3.8 million approximately (2013: $2.6 million).
Kipawa JV Operational Highlights
- 85% of the bulk work for the feasibility study is completed and it is now for the independent engineering firms Roche Ltd. and Genivar to gather the remaining information and to complete the report;
- The activities for the last quarter surrounding the feasibility study for the Kipawa HREE were focussed on laboratory test work to optimize the ore process flow diagrams and the process equipment sizing. The general concepts of all the infrastructures required for the operation have been frozen so the engineering firm could work on OPEX and CAPEX in order to complete the feasibility study;
- An Environmental and Social Impact Assessment conducted by Golder Associates initiated in May 2012 for the Kipawa project continues to advance with results for inclusion in the feasibility study;
- Variability metallurgical test work is near completion with the ability to process material from any part of the deposit;
- Development of the purification circuit ongoing, for producing a high purity heavy and light rare earth product;
- Second pilot plant planned for second half of 2013, for further optimization and improvement on the overall recovery;
- Information meetings continue with regional and local citizens, including harmonization roundtables and follow-up; and
- Meetings continue with the Band councils and populations of the two Algonquin communities involved in the project, Eagle Village First Nation and Wolf Lake First Nation.
SELECTED ANNUAL INFORMATION
The following table includes selected consolidated financial data, prepared in accordance with International Financial Reporting Standards (“IFRS”), for the period ended March 31, 2013 and 2012.
|Results as at March 31, 2013||Results as at March 31, 2012|
|Income – Interest||14,845||8,470|
|General and administrative expenses||494,282||528,112|
|Deferred income tax (recovery)||(205,773||)||–|
|Net loss per share, basic and diluted||0.002||0.006|
March 31, 2013
December 31, 2012
|Cash and cash equivalents||2,435,723||1,692,598|
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2013 First Quarter Financial Results Available
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the first quarter ended March 31, 2013, are available on the Company’s website – www.matamec.com. These documents are also filed on SEDAR, and will be accessible from the SEDAR website at www.sedar.com.
Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit with TRECan. Following the positive conclusion of the PEA study filed on SEDAR in March 2012 and the hiring of a VP Project development and Construction, Matamec and TRECan decided to move directly to the feasibility study. The March 2012 press release highlighted that the project has robust economics such as: $606 million before-tax value (NPV8%), a 36.9% before-tax IRR, $2.8 billion revenue, $1.67 billion EBITDA, a before-tax payback period of 2.4 years, etc. (see press release dated January 30, 2012). Resources that are not mineral reserves do not have demonstrated economic viability.
In parallel, the Company is exploring more than 35km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property.
The company is also exploring for gold, base metals and platinum group metals. Its gold portfolio includes the Matheson JV property located along strike and in close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario.
In Quebec, the Company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties. As well, it is exploring for gold together with Northern Superior Resources Inc. on the Wachigabau property.
“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.”
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