VANCOUVER, Aug. 15 /CNW/ - Polaris Minerals Corporation (TSX:PLS) today
reported financial results for the second quarter ended June 30, 2007. All
financial results are in US dollars, unless otherwise noted.
Polaris' sales for the second quarter ending June 30, 2007 were
$4.4 million. During the corresponding period in 2006, the principal assets
were under construction and, therefore, the Company had no operating revenues
in the period. A loss of $1.2 million ($0.03 per share) was incurred for the
quarter ended June 30, 2007, compared to a loss of $0.1 million ($0.00 per
share) for the period ended June 30, 2006.
As of June 30, 2007, the Company had working capital of $31.8 million,
including cash of $29.8 million, compared to working capital of $32.6 million
and cash of $42.4 million for the quarter ended December 30, 2006.
During the quarter ended June 30, 2007, the Company capitalized
$9.3 million to property, plant and equipment, compared with $11.1 million in
the corresponding period ended June 30, 2006.
This financial summary should be read in conjunction with the Company's
June 30, 2007 unaudited consolidated financial statements and Management's
Discussion and Analysis, both of which will be available on www.sedar.com.
Marco Romero, Polaris President and CEO, said: "We are pleased with the
Company's financial results in the second quarter. Operating costs at the Orca
Quarry are in line with expectations for the ramp-up period and the current
level of production. We expect the gross margin to strengthen in the coming
quarters, as increasing sales and production enable the amortization of fixed
costs to be spread over greater tonnage. We have sufficient capital resources
to implement our short and medium term business objectives, and do not
anticipate needing any debt or equity financing to achieve positive cash flow.
We remain on track to meet or exceed our sales target of 1.54 million tons in
our first 12 months of operation. It has been particularly gratifying to
actually see our aggregates converted by our customers into buildings and
Second Quarter Highlights
During the second quarter of 2007 the Company established regular barge
shipments of sand and gravel into the Lower Mainland of British Columbia and
into San Francisco Bay by self-unloading Panamax vessels. One shipment of
material was also sent to Hawaii. The Orca Quarry continues to operate as
expected, producing a high quality sand and gravel.
Photographs of concrete structures using sand and gravel produced at the
Orca Quarry can be viewed on Polaris' website. Please visit:
http://www.polarmin.com/orcasand/photogallery.php to view these photographs.
These images include the Legacy 1 and 2 high-rise tower project in Burnaby,
British Columbia; a highway interchange on Highway 101 in San Rafael,
California; a major wastewater treatment plant in Petaluma, California and the
Green Music Center at the Sonoma State University, California.
Construction of the Richmond Terminal is proceeding in accordance with
expectations and it is anticipated to commence operation early in the fourth
quarter of 2007.
The Company will host a conference call at 8:00 am PT on Friday,
August 17, 2007. Investors and other interested parties may access the
teleconference live by calling 800-595-8550 or 416-644-3420 in North America
or internationally and 00 800 0000 2288 from the United Kingdom.
A live webcast of the conference call will be available through the link
The webcast will be archived for 90 days following the call.
The conference call will be recorded and available for replay at
10:00 am PT and will be available until August 31, 2007. In North America dial
877-289-8525, and for international calls, dial 1-416-640-1917. The access
code to hear the recording is 21242391 followed by the number sign.
Polaris Minerals Corporation is exclusively focused on the development of
quarries and the production of construction aggregates in British Columbia for
marine transport to urban markets on the west coast of North America to meet
growing local supply deficits.
This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable securities
laws. These statements and information appear in this document and include
estimates, forecasts, information and statements as to management's
expectations with respect to, among other things the future financial or
operating performance of the Company, costs and timing of the development of
the construction aggregate quarry, the timing and amount of estimated future
production, costs of production, capital and operating expenditures,
requirements for additional capital, government regulation of quarrying
operations, environmental risks, reclamation expenses, and title disputes.
Often, but not always, forward-looking statements and information can be
identified by the use of words such as "may", "will", "should", "plans",
"expects", "intends", "anticipates", "believes", "budget", and "scheduled" or
the negative thereof or variations thereon or similar terminology.
Forward-looking statements and information are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by management,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies. Readers are cautioned that any such
forward-looking statements and information are not guarantees and there can be
no assurance that such statements and information will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from the Company's expectations are disclosed
under the heading "Risks and Uncertainties" in the Company's Annual Report and
under the heading "Risk Factors" in the Company's Annual Information Form
(AIF) in respect of its financial year-ended December 31, 2006, both of which
are filed with Canadian regulators on SEDAR (www.sedar.com). The Company
expressly disclaims any intention or obligation to update or revise any
forward-looking statements and information whether as a result of new
information, future events or otherwise. All written and oral forward-looking
statements and information attributable to us or persons acting on our behalf
are expressly qualified in their entirety by the foregoing cautionary
For further information:
For further information: Marco Romero, President & CEO, or Mike
Westerlund, Director, Corporate Development, Polaris Minerals Corporation,
Tel: (604) 915-5000, firstname.lastname@example.org