/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
INVESTOR CONFERENCE CALL FRIDAY MAY 9,
2014 AT 8:30am EST
Revenue of $8.3 million and
EBITDA1 of $4.6 million
and Net Income of $2.462 million
($0.07 per share) for Q2,
2014
TORONTO,
May 8, 2014 /CNW/ - Almonty
Industries Inc. ("Almonty" or the "Company") (TSX-V:
AII) today announced the filing of its unaudited consolidated
interim financial statements and management discussion &
analysis ("MD&A") for the three and six month periods
ended March 31, 2014. Unless
otherwise indicated, all currency amounts contained in this news
release are in thousands of Canadian dollars.
Almonty reported revenue of $8,327, gross profit of $5,859 representing a gross profit margin of
70.4%, EBITDA1 of $4,644
and net income of $2,462 for the
three month period ended March 31,
2014.
Summary operating information:
| |
Six Months
Ended March
31, 2014 |
Six Months
Ended March
31, 2013 |
Three Months
Ended March
31, 2014 |
Three
Months
Ended March
31, 2013 |
Year Ended
September 30,
2013 |
Year
Ended
September
30, 2012 |
| Ore treated (tonnes) |
249,906 |
224,727 |
119,196 |
108,576 |
456,895 |
476,591 |
| WO3 concentrate
produced (MTU) |
41,420 |
38,488 |
25,299 |
19,129 |
67,435 |
65,848 |
| WO3 concentrate sold
(MTU) |
42,386 |
39,656 |
25,486 |
20,396 |
66,807 |
66,419 |
| Sales revenue (US$ million) |
12.7 |
9.9 |
7.6 |
4.9 |
17.8 |
21.5 |
| Cash operating costs
(US$/MTU) |
128 |
146 |
103 |
145 |
177 |
183 |
| Cash operating costs (€/MTU) |
93 |
111 |
75 |
109 |
135 |
141 |
| Ore mined (tonnes) |
219,166 |
287,814 |
79,954 |
159,886 |
556,861 |
462,221 |
| Average grade WO3
mined |
0.54% |
0.32% |
0.70% |
0.29% |
0.33% |
0.28% |
| Average WO3 recovery
rate |
52.9% |
61.7% |
54.6% |
59.6% |
55.2% |
57.8% |
Production volumes for both the three and six
month period ended March 31, 2014
were at record levels, increasing 32.3% and 6.9% over the three and
six month comparative periods from 2013. Operating cash costs
in US $ decreased 29.0% and 12.3% over the three and six month
comparative periods from 2013 despite a significant increase in the
value of the Euro vs the US$ from Euro
1.00 = USD1.2837 as at
March 31, 2013 to Euro 1.00 = USD1.3776 as at March 31,
2014, an increase of over 7.3%.
APT prices average US$
370/MTU and US$378/MTIU for
the three and six month periods ended March
31, 2014 (US$325/MTU and
US$325/MTU for the three and six
month periods ended March 31,
2013).
The following financial information is for three
and six month periods ended March 31,
2014 and 2013:
| |
|
Three
Months
Ended
March 31,
2014
$'000 |
Three
Months
Ended
March 31,
2013
$'000 |
Three
Months
Ended
December 31,
2013
$'000 |
| Gross Revenue |
|
8,327 |
5,005 |
5,463 |
| Cost of sales |
|
2,468 |
2,440 |
2,496 |
| Gross profit |
|
5,859 |
2,565 |
2,967 |
| General and administrative costs |
|
956 |
719 |
803 |
| Other expense (income) |
|
259 |
12 |
(93) |
Non-cash compensation
costs (options issued to
directors, officers and key management) |
|
- |
15 |
56 |
| Earnings (loss) before the
undernoted items |
|
4,644 |
1,819 |
2,201 |
| Depreciation and amortization |
|
2,118 |
1,595 |
1,065 |
| Interest expense |
|
100 |
23 |
90 |
| Deferred income tax expense
(recovery) |
|
- |
- |
- |
| Net income (loss) for the
period |
|
2,426 |
201 |
1,042 |
| Income (loss) per share basic |
|
$0.07 |
$0.01 |
$0.03 |
| Income (loss) per share diluted |
|
$0.07 |
$0.01 |
$0.03 |
| Dividends |
|
- |
- |
- |
| |
|
|
|
|
| Cash flows provided by (used in)
operating activities |
|
1,140 |
2,850 |
2,605 |
| Cash flows provided by (used in)
investing activities |
|
(2,791) |
(2,768) |
(2,859) |
| Cash flows provided by (used
in)financing activities |
|
1,670 |
(16) |
(588) |
| |
|
|
|
| |
|
|
|
|
| |
|
|
Six Months
Ended
March 31,
2014
$'000 |
Six Months
Ended
March 31,
2013
$'000 |
| Gross Revenue |
|
|
13,790 |
10,037 |
| Cost of sales |
|
|
4,964 |
4,959 |
| Gross profit |
|
|
8,826 |
5,078 |
| General and administrative costs |
|
|
1,760 |
1,538 |
| Other expense (income) |
|
|
166 |
46 |
Non-cash compensation costs (options
issued to
directors, officers and key management) |
|
|
56 |
30 |
| Earnings (loss) before the
undernoted items |
|
|
6,844 |
3,464 |
| Depreciation and amortization |
|
|
3,184 |
2,993 |
| Interest expense |
|
|
192 |
41 |
| Deferred income tax expense
(recovery) |
|
|
- |
- |
| Net income (loss) for the
period |
|
|
3,468 |
430 |
| Income (loss) per share basic |
|
|
$0.09 |
$0.01 |
| Income (loss) per share diluted |
|
|
$0.09 |
$0.01 |
| Dividends |
|
|
- |
- |
| |
|
|
|
|
| Cash flows provided by (used in)
operating activities |
|
|
3,744 |
4,562 |
| Cash flows provided by (used in)
investing activities |
|
|
(5,650) |
(5,280) |
| Cash flows provided by (used
in)financing activities |
|
|
1,083 |
(31) |
| |
|
|
|
|
| |
|
March 31, 2014 |
March 31, 2013 |
September 30, 2013 |
| Cash |
|
318 |
322 |
1,083 |
| Restricted cash |
|
- |
- |
237 |
| Total assets |
|
41,020 |
30,361 |
36,676 |
| Long-term trade payables |
|
675 |
596 |
617 |
| Long-term debt |
|
7,665 |
- |
5,946 |
| Capital lease obligations |
|
185 |
121 |
108 |
| Shareholders' equity |
|
27,307 |
22,776 |
21,857 |
| |
|
|
|
|
| Other |
|
|
|
|
| Outstanding shares ('000) |
|
36,871 |
37,044 |
37,044 |
| Weighted average outstanding shares
('000) |
|
|
|
|
| |
Basic |
|
36,957 |
37,044 |
37,044 |
| |
Fully diluted (treasury method) |
|
36,963 |
37,051 |
37,044 |
| Closing share price |
|
$0.80 |
$1.05 |
$0.93 |
Lewis Black,
Chief Executive Officer of Almonty commented, "Almonty has achieved
record quarterly results, both in terms of MTUs of WO3
produced and earnings per share. The fact that these results
were achieved in spite of both a drop in the APT price during the
quarter and the continued decline in the US dollar vs. the Euro,
further bolsters our view that the efficiency gains and our focus
on cost control are starting to pay off. Our on-going cost
reductions and tungsten recovery gains have had a significant
positive impact on our unit costs. We believe that our
targeted US$120-130 per MTU of
WO3 is achievable over the remaining life of the Los
Santos Project."
A teleconference to review the first quarter
ended December 31, 2013 will be held
at 8:30 a.m. ET on Friday May 9th, 2014. Representing
management will be Lewis Black,
chairman, president & chief executive officer, and Dennis Logan, chief financial officer. A
question and answer period will follow brief remarks from
management.
To participate in the teleconference:
- if calling from North
America:
+1-888-390-0546
- if calling from outside North
America: +1-416-764-8688
An archive of the conference call will be
available until June 9, 2014.
To access the archive:
- from North
America: +1 888-390-0541 (pass code:
165352)
- from outside North
America: +1-416-764-8677 (pass code: 165352)
About Almonty
The principal business of Toronto, Canada based Almonty Industries Inc.
(TSX-V: AII) is the mining, processing and shipping of tungsten
concentrate from its tungsten mine at the Los Santos Project.
The Los Santos Project was acquired by Almonty in September 2011. The Los Santos Project is
located approximately 50 kilometres from Salamanca in western
Spain and produces tungsten
concentrate. Almonty also has an option to acquire a 100%
ownership interest in the Valtraxial tin-tungsten project in north
western Spain.
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, Euro/USD exchange rates,
production volumes, tungsten recovery rates, unit costs and future
APT prices. 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.
_____________________________________________________________________
1 EBITDA is a non-GAAP metric of the Company's
financial performance that measures earnings prior to deductions of
interest, taxes, depreciation and amortization.
SOURCE Almonty Industries Inc.