VANCOUVER, Nov. 14 /CNW/ - Polaris Minerals Corporation (TSX:PLS) today
reported financial results for the third quarter ended September 30, 2007. All
financial results are in US dollars, unless otherwise noted.
Polaris' sales for the third quarter ending September 30, 2007 were
$5.5 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 $1.9 million ($0.05 per share) was incurred for the
quarter ended September 30, 2007, compared to a loss of $7,448 ($0.00 per
share) for the period ended September 30, 2006.
As of September 30, 2007, the Company had working capital of
$21.3 million, including cash of $18.8 million, compared to working capital of
$32.6 million and cash of $42.4 million for the quarter ended December 30,
During the quarter ended September 30, 2007, the Company capitalized $8.8
million to property, plant and equipment, compared with $17.8 million in the
corresponding period ended September 30, 2006.
This financial summary should be read in conjunction with the Company's
September 30, 2007 unaudited consolidated financial statements and
Management's Discussion and Analysis, both of which will be available on
Marco Romero, Polaris President and CEO, said: "The Company's financial
results for the third quarter were in line with our expectations for the
current level of production during this ramp-up period. Distribution costs
were higher than anticipated, reflecting minor delays in securing terminal
capacity and the resulting need to lightly load two vessels in order to
maintain supplies to a San Francisco Bay customer. The high quality of the
sand and gravel from the Orca Quarry is well recognized by our customers and
has led to sales of 488,414 tons during this quarter. A large proportion of
our sales into California are now going into private commercial and
infrastructure projects, reflecting the current reduction in private house
building and the corresponding increase in infrastructure spending."
Mr. Romero continued, "We are very pleased with the recently announced
Strategic Alliance with Cemex, through which we have become their exclusive
supplier of imported aggregates in Washington, Oregon and California. As a
result of the Cemex agreement, our existing agreement with Shamrock, and the
construction of our new Richmond Terminal, we have so far secured exclusive
access to four terminals in San Francisco Bay, with more expected to come on
stream in the next year or two. In collaboration with Cemex, we have
accelerated new terminal development initiatives in Southern California and
are following up on a number of promising opportunities. Sales continue to
pick up pace and we are on-track to exceed our original sales target of
1.54 million tons in the first full year of production. We anticipate that in
the coming quarters our costs per ton will continue to decrease to the benefit
of margins, as sales volumes increase and greater logistical flexibility and
further economies of scale are achieved."
Third Quarter Highlights
The most significant event during the third quarter was the announcement
that Polaris and Cemex had entered into a long-term Strategic Alliance in
California, Oregon and Washington. For this three State area, the parties have
agreed that Polaris will be the exclusive supplier to Cemex of marine
transported construction aggregates internal use by Cemex and for sales by
Cemex to third party customers, and that Cemex will be the exclusive marketer
for Polaris. Polaris has already initiated sand and gravel shipments from the
Orca Quarry to the two existing Cemex terminals in San Francisco Bay. In
addition, the two companies have entered into an agreement to pursue the
development of future construction aggregates import terminals in California,
Oregon and Washington and to pursue markets for the products of the proposed
Eagle Rock Quarry.
The first shipment of sand and gravel from the Orca Quarry was unloaded
at the Richmond Terminal in San Francisco Bay on October 9, 2007.
Commissioning of the truck load-out facility has now been successfully
completed, thus opening up a further strategic gateway into the San Francisco
A third tractor scraper has been ordered from Caterpillar for the Orca
Quarry for delivery in the spring of 2008, which will enable the Orca Quarry
to continue ramping up production.
Photographs of the Richmond Terminal and of recent aggregate deliveries
to Hawaii from the Orca Quarry can be seen on Polaris website. Please visit
http://www.polarmin.com/projects/photogallery.php to view these photographs.
The Company will host a conference call at 8:00 am PT on Thursday,
November 15, 2007. Investors and other interested parties may access the
teleconference live by calling 800-590-1508 or 416-644-3427 in North America
or internationally and 00 800 2288 3501 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 Friday, November 30, 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 21252629, 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