/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
INVESTOR CONFERENCE CALL WEDNESAY AUGUST 27, 2014 AT 8:30am
EST
Revenue of $7.4
million and EBITDA1 of $4.0 million and Net Loss of $0.0 million and record operating cash flow of
$5.0 million for Q3 2014
TORONTO, Aug. 26, 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 nine month periods ended
June 30, 2014. Unless otherwise
indicated, all currency amounts contained in this news release are
in thousands of Canadian dollars.
Almonty reported revenue of $7,368, gross profit of $5,112 representing a gross profit margin of
69.4%, EBITDA1 of $4,023,
net loss of ($13) and operating cash
flow of $5,029 for the three month
period ended June 30, 2014.
Summary operating information:
|
Nine
Months
Ended June
30,
2014
|
Nine
Months
Ended June
30,
2013
|
Three
Months
Ended June
30,
2014
|
Three
Months
Ended June
30,
2013
|
Year Ended
September
30,
2013
|
Year Ended
September
30,
2012
|
Ore treated
(tonnes)
|
360,988
|
339,074
|
111,082
|
114,347
|
456,895
|
476,591
|
WO3
concentrate produced (MTU)
|
65,316
|
47,796
|
23,533
|
12,336
|
67,435
|
65,848
|
WO3
concentrate sold (MTU)
|
66,652
|
52,119
|
24,266
|
12,963
|
66,807
|
66,419
|
Sales revenue (US$
million)
|
19.3
|
13.7
|
7.0
|
3.7
|
17.8
|
21.5
|
Cash operating costs
(US$/MTU)
|
119
|
160
|
114
|
198
|
177
|
183
|
Cash operating costs
(€/MTU)
|
80
|
123
|
83
|
152
|
135
|
141
|
Ore mined
(tonnes)
|
332,125
|
400,974
|
112,960
|
113,160
|
556,861
|
462,221
|
Average grade
WO3 mined
|
0.51%
|
0.34%
|
0.53%
|
0.28%
|
0.33%
|
0.28%
|
Average
WO3 recovery rate
|
52.6%
|
56.3%
|
52.1%
|
46.0%
|
55.2%
|
57.8%
|
Production volumes for both the three and nine month period
ended June 30, 2014 continued on pace
with the sales volume and production recorded during Q2 2014 and
were at record levels for the nine month period.
Production increased 87.2% and 27.9% over the three and nine month
comparative periods from 2013. Operating cash costs in US $
decreased 42.4% and 25.6% over the three and nine month comparative
periods.
APT prices average US$ 370/MTU and
US$375/MTIU for the three and nine
month periods ended June 30, 2014
(US$365/MTU and US$339/MTU for the three and nine month periods
ended June 30, 2013).
The following financial information is for three and nine month
periods ended June 30, 2014 and
2013:
|
|
Three
Months
Ended
June
30,
2014
$'000
|
Three
Months
Ended
June
30,
2013
$'000
|
Three
Months
Ended
March
31,
2014
$'000
|
Gross
Revenue
|
|
7,368
|
3,574
|
8,327
|
Cost of
sales
|
|
2,256
|
2,179
|
2,468
|
Gross
profit
|
|
5,112
|
1,395
|
5,859
|
General and
administrative costs
|
|
751
|
780
|
956
|
Other expense
(income)
|
|
338
|
81
|
259
|
Non-cash compensation
costs (options issued to directors, officers and key
management)
|
|
-
|
166
|
-
|
Earnings (loss)
before the undernoted items
|
|
4,023
|
368
|
4,644
|
Depreciation and
amortization
|
|
3,924
|
1,421
|
2,118
|
Interest
expense
|
|
112
|
76
|
100
|
Loss due to
fire
|
|
-
|
527
|
-
|
Net income (loss)
for the period
|
|
(13)
|
(1,656)
|
2,426
|
Income (loss) per
share basic
|
|
$0.00
|
($0.04)
|
$0.07
|
Income (loss) per
share diluted
|
|
$0.00
|
($0.04)
|
$0.07
|
Dividends
|
|
-
|
-
|
-
|
|
|
|
|
|
Cash flows provided
by (used in) operating activities
|
|
5,029
|
(36)
|
1,140
|
Cash flows provided
by (used in) investing activities
|
|
(3,886)
|
(3,352)
|
(2,791)
|
Cash flows provided
by (used in)financing activities
|
|
2,777
|
5,949
|
1,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months
Ended
June
30,
2014
$'000
|
Nine
Months
Ended
June
30,
2013
$'000
|
Gross
Revenue
|
|
|
21,158
|
13,611
|
Cost of
sales
|
|
|
7,220
|
7,138
|
Gross
profit
|
|
|
13,938
|
6,473
|
General and
administrative costs
|
|
|
2,511
|
2,318
|
Other expense
(income)
|
|
|
502
|
127
|
Non-cash compensation
costs (options issued to directors, officers and key
management)
|
|
|
56
|
196
|
Earnings (loss)
before the undernoted items
|
|
|
10,869
|
3,822
|
Depreciation and
amortization
|
|
|
7,108
|
4,414
|
Interest
expense
|
|
|
304
|
117
|
Loss from
fire
|
|
|
-
|
527
|
Net income (loss)
for the period
|
|
|
3,457
|
(1,226)
|
Income (loss) per
share basic
|
|
|
$0.09
|
($0.03)
|
Income (loss) per
share diluted
|
|
|
$0.09
|
($0.03)
|
Dividends
|
|
|
-
|
-
|
|
|
|
|
|
Cash flows provided
by (used in) operating activities
|
|
|
8,775
|
4,526
|
Cash flows provided
by (used in) investing activities
|
|
|
(9,536)
|
(8,631)
|
Cash flows provided
by (used in)financing activities
|
|
|
3,859
|
5,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
September
30, 2013
|
Cash
|
|
|
4,154
|
1,083
|
Restricted
cash
|
|
|
-
|
237
|
Total
assets
|
|
|
43,562
|
36,676
|
Long-term trade
payables
|
|
|
648
|
617
|
Long-term
debt
|
|
|
10,775
|
5,946
|
Capital lease
obligations
|
|
|
333
|
108
|
Shareholders'
equity
|
|
|
25,421
|
21,857
|
|
|
|
|
|
Other
|
|
|
|
|
Outstanding shares
('000)
|
|
|
36,787
|
37,044
|
Weighted average
outstanding shares ('000)
|
|
|
|
|
|
Basic
|
|
|
36,916
|
37,044
|
|
Fully diluted
(treasury method)
|
|
|
36,923
|
37,044
|
Closing share
price
|
|
|
$0.76
|
$0.93
|
Lewis Black, Chief Executive
Officer of Almonty commented, "Almonty has been able to maintain
the robust production and sales volumes in Q3 and is on pace to
match or exceed them again in Q4. The efficiency gains and our
focus on cost control are continuing to pay off and should be
further enhanced as our tungsten recovery rate improves going
forward. This quarter saw us complete mining activity on one
pit with a high capitalized cost base that we inherited at the time
of the acquisition of the Los Santos Project. This led to a
higher than anticipated amortization charge during Q3 that had a
negative impact on net income and earnings per share but did not
impact operating cash flow, which reached record levels during the
quarter. The return of mining activity to the main pits at
Los Santos should see Almonty's financial performance improve
significantly in Q4 and during fiscal 2015."
A teleconference to review the third quarter results will be
held at 8:30 a.m. ET on Wednesday August 27, 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
September 27, 2014.
To access the archive:
- from North America: +1
888-390-0541 (pass code: 475068)
- from outside North America:
+1-416-764-8677 (pass code: 475068)
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 Valtreixal 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, production volumes, tungsten
recovery rates, unit costs, future APT prices and future financial
performance. 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.