Almonty announces the filing of its financial statements and MD&A for the three and six months ended March 31, 2014

/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.

For further information:

Dennis Logan, Director & Chief Financial Officer
Telephone: (647) 438-9766
Email: info@almonty.com

Profil de l'entreprise

Almonty Industries Inc.

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