Almonty Announces Results for the Three and Nine Month Periods Ended June 30, 2012
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
Revenue of $4.80 million and EBITDA1 of $1.45 million for the second quarter
TORONTO, Aug. 28, 2012 /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, 2012. Unless otherwise indicated, all currency amounts contained in this news release are in thousands of Canadian dollars.
Almonty reported revenue of $4,802, gross profit of $2,239 representing a gross profit margin of 46.6%, EBITDA1 of $1,450 and net income of $263 for the three month period ended June 30, 2012. For the nine month period ended June 30, 2012 revenue totalled $16,251, gross profit was $7,661 representing a gross profit margin of 47.1%, EBITDA1 of $5,355 and net income of $1,390.
Almonty mined 113,492 tonnes of ore at a weighted average grade of 0.28% WO3 for the three month period ended June 30, 2012 (347,574 tonnes of ore at a weighted average grade of 0.27% WO3 for the nine month period ended June 30, 2012). The overall increase in head grade mined is a result of planned pit optimization that the Company is undertaking to further enhance its ability to access higher grade material in future periods.
The Company processed 116,166 tonnes of ore during the three month period ended June 30, 2012. The weighted average grade of ore processed was 0.24% WO3 for a total contained MTU WO3 processed of 27,786.
Tungsten concentrate recovery for the period averaged 58.1%, a marginal increase over the previous quarter recovery rate of 57.1%. The Company believes that it has fully optimized the existing processing equipment following the installation of a hydrosizer to its processing circuit in May 2012. This is the first in a series of processing improvements the Company is undertaking to further enhance its tungsten recovery rate. Tungsten recovery rates averaged 60.5% in June and 60.0% in July. The Company has begun site preparation work and finalized the engineering design for the installation of a flotation circuit. The Company expects that the addition of the flotation circuit, coupled with additional optimization plans, will enable it to achieve its goal of a minimum of 65% tungsten recovery rate by the end of the calendar year.
The Company shipped 12,586 MTU of high grade concentrate (65.0% or higher WO3) and 2,400 MTU of low grade concentrate (between 45.0% and 65.0% WO3) during the three months ended June 30, 2012.
Summary operating information:
|Ore treated (tonnes)||116,166||356,688||441,976|
|WO3 concentrate produced (MTU)||16,144||48,332||61,599|
|WO3 concentrate sold (MTU)||14,986||47,842||52,807|
|Sales revenue (US$ million)||4.8||16.1||15.0|
|Cash operating costs (US$/MTU)||187||189||193|
|Ore mined (tonnes)||113,492||347,574||482,968|
|Average grade WO3 mined||0.28%||0.27%||0.32%|
|Average WO3 recovery rate||58.1%||57.1%||52.3%|
Note: Information for the year ended September 30, 2011 is based on the operating results of Daytal Resources Spain, S.L. ("Daytal") under its previous owner, Heemskirk Consolidated Limited ("Heemskirk"), prior to Daytal being acquired by Almonty.
Average tungsten recovery rates improved significantly following the installation and commissioning of the hydrosizer. The overall average tungsten recovery rate for the month of June was 60.5% and for July it was 60.0%.
Lewis Black, Chief Executive Officer of Almonty commented, "We are pleased with the results to date of our optimization plan and fully expect to achieve our minimum targeted tungsten recovery rate of 65% by the end of the calendar year. Our continued focus on operational efficiency has enabled us to reduce our cash operating cost levels below that of the previous quarter and put the company on track to achieve our target level of US$125-130 per MTU."
The following financial information is for the periods from July 1, 2011 to September 30, 2011, from October 1, 2011 to June 30, 2012 and from April 1, 2012 to June 30, 2012:
June 30, 2012
June 30, 2012
September 30, 2011
|Cost of sales||2,563||8,590||-|
|Bargain purchase gain||-||-||68|
|General and administrative costs||(788)||(2,230)||(326)|
Non-cash compensation costs (options issued to
directors, officers and key management)
|Earnings (loss) before the undernoted items||1,450||5,355||(2,105)|
|Depreciation and amortization||(1,170)||(3,921)||-|
|Net income (loss) for the period||263||1,390||(2,105)|
|Income (loss) per share basic||$0.01||$0.04||($0.06)|
|Income (loss) per share diluted||$0.01||$0.03||($0.06)|
|Cash flows provided by (used in) operating activities||2,534||6,106||(593)|
|Cash flows used in investing activities||(2,583)||(6,485)||(14,152)|
|Cash flows provided by financing activities||17||213||15,901|
|June 30, 2012||March 31, 2012||September 30, 2011|
|Long-term trade payables||513||534||520|
|Capital lease obligations||166||186||50|
|Outstanding shares ('000)||37,028||37,011||37,011|
|Weighted average outstanding shares ('000)|
|Closing share price||$0.94||$0.99||$1.00|
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 mine was originally opened in 2008 and commissioned in July 2010 by its former owner. The Los Santos Project is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate which is currently sold under a long-term supply agreement. In 2011, the Los Santos Project had an annual output of approximately 441,976 tonnes of ore (at 0.27% WO3).
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
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect Almonty's current expectations. 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.
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 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.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Almonty undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.
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,For further information:
Dennis Logan, Director & Chief Financial Officer
Telephone: (647) 478-5308