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CALGARY, Aug. 26 /CNW/ - Whitemud Resources Inc. ("Whitemud" or "the Company") (TSXV:WMK) today announced that it has filed its financial statements and management's discussion and analysis for the quarter ended June 30, 2010 with Canadian securities regulatory authorities. Copies of these documents are available at www.sedar.com and Whitemud's website at www.whitemudresources.com.
Financial highlights and results for the quarter ending June 30, 2010:
- Sales of $353,871 and $515,452 for the three and six months ended
June 30, 2010 respectively as compared to $149,679 and $251,110
respectively in the comparative periods
- The net loss for the three months ended June 30, 2010 amounted to
$1,278,740 ($0.07 per share) compared to a net loss of $2,029,881
($0.12 per share) for the three months ended June 30, 2009. The
Company recorded income of $630,000 in the second quarter that
resulted from the settlement of a dispute related to the failure of
the refractory lining of the plant kiln in 2008.
- Cost reduction initiatives have resulted in a reduction of salaries,
general and administrative expenses by 43% in the first two quarters
compared to the same period in the previous year
As previously announced on July 28, 2010, the Company completed a U.S. Supply and Distribution Agreement with a leading supplier of performance additives to the concrete industry. The agreement provides the distributor with exclusive distribution rights to market Whitemud(MK) to the ready mix concrete, precast concrete, concrete block, concrete brick, concrete pipe, and mining industries for the United States. The Company and its new Distribution partner in the U.S. have initiated a number of trials with producers in California, Arizona, Utah, Pennsylvania, Colorado, New Mexico, Nevada, and Idaho for use in precast concrete, ready mix concrete, concrete block, and shotcrete.
Management believes this Distribution agreement is a major step in the execution of its marketing plan and is a key milestone to Whitemud's efforts to secure additional financing to meet ongoing needs for working capital and obligations to creditors.
Although sales to date have not met management's expectations, the Company's sales have grown and new markets and applications continue to develop. In July, Whitemud initiated shipments to Colorado for oil well cementing with an international oilfield services company which subsequently began purchasing Whitemud(MK) for use in Alberta oil and gas wells.
Whitemud announced on July 28, 2010 that the Company would not make the July 31, 2010 interest payment, or the deferred January 31, 2010 interest payment on its outstanding debentures. Management is currently developing a proposal for the debenture holders. Any plan or proposal that the Company develops is subject to all necessary approvals, including stakeholder and regulatory approvals. The Company will keep debenture holders and shareholders informed on developments with respect to its plans.
Despite continued improvement in the Company's outlook for sales growth, additional capital will be required to meet the Company's future obligations and to sustain operations. Management continues to develop and implement a strategy to raise additional funds. As at June 30, 2010, the Company has drawn $182,402 on the $2 million credit facility with its bank and failed to meet its current ratio covenant. The Company is presently working with its bank towards a remedy while seeking additional financing.
This financial summary should be read in conjunction with the Company's June 30, 2010 Interim Financial Statements and Management's Discussion and Analysis, both of which are available on www.sedar.com.
About Whitemud Resources
Whitemud Resources Inc. (www.whitemudresources.com) is a Canadian-based corporation that is exploiting a large kaolin deposit in southern Saskatchewan. The Company produces Whitemud(MK), a high-reactivity, cement-grade metakaolin that enhances the performance of cement used in construction and in oil and gas wells. The Company is positioned to benefit from expanding North American infrastructure needs and growing environmental pressures.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, and in particular comments relating to expectations relating to the growing markets and applications of its Whitemud product, efforts to secure additional financing, expansion in the oil well service industry, and management's proposals and plans for amounts owing under its debentures. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of Whitemud may be affected by a variety of variables and risks associated with ability to access sufficient debt and equity capital from internal and external sources, ability to satisfy amounts owing to its debenture holders, ability to expand in the marketplace, anticipated opportunities for strategic relationships, strategy for additional financing, growing acceptance of the Company's product, expectations of customers to expand use of the Company's product and oil well service industry and infrastructure projects upon which Whitemud is dependent for the consumption of its Whitemud product. As such the future plans and objectives of Whitemud are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. The Company has, in part, relied on information provided to it by its customers and potential customers, as well as reports and forecasts provided by parties involved in infrastructure projects, the precast concrete industry and oil well service industry in order to develop its forward-looking statements and there is no assurance that the assumptions, forecasts or information relied upon by the Company is correct, or will not be affected by events or circumstances beyond the control of the Company. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
For further information on Whitemud, go to www.whitemudresources.com
For email alerts regarding Whitemud Resources, please go to Whitemud Resources Inc. - Email Alerts
SOURCE WHITEMUD RESOURCES INC.
For further information: For further information: Burl Aycock, CEO, Whitemud Resources, Telephone: (403) 695-1012; or Kelly Babichuk, President and COO, Whitemud Resources, Telephone: (403) 517-0040