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CALGARY, May 3 /CNW/ - Whitemud Resources Inc. ("Whitemud" or "the Company") (TSXV:WMK) provides summary financial results and an operations update and for the twelve months ended December 31, 2009.
Financial highlights and results for the year ended December 31, 2009:
- Revenue increased to $596,634 compared to $58,307 in 2008
- The net loss for the year amounted to $8,010,480 ($0.47 per share)
compared to $7,435,502 ($0.46 per share) in 2008
- Working capital at year end of $2,483,658 compared to $1,842,302 at
December 31, 2008
- As of December 31, 2009, the Company had approximately $939,000 in
cash available for operations and currently has a $2 million credit
facility with its bank to supplement working capital requirements. To
date, this facility has not been accessed
- The Company closed a 12% secured convertible redeemable debenture
financing on August 6, 2009 consisting of 10,513 units for gross
proceeds of $10,513,000 ($9,436,766 net of issue costs). Each unit
consists of a $1,000 debenture and 200 common share purchase warrants
exercisable at $1.14 per share until July 30, 2012
Despite growing acceptance of Whitemud's product, the Company and the concrete industry continue to experience the negative impact of the economic downturn. Sales growth of Whitemud(MK) has not met the Company's expectations. In response, the Company began investigating opportunities to pursue a strategic relationship with major construction material suppliers that could bring additional resources to marketing metakaolin in North America.
Costs are being minimized through a number of initiatives, including the reduction of overhead through staff reductions and salary cuts to senior management, re-negotiating of key supplier contracts, and by postponing plant production until the majority of the product inventory has been shipped. Through these initiatives, the Company has managed to ensure the retention of key senior management and personnel to maintain continued quality supply and service to our existing and future customers.
Although the Company still has access to a $2 million credit facility with its bank, additional capital will be required to meet its future obligations and sustain operations. Management is currently reviewing its strategy for additional financing.
The acceptance of Whitemud(MK) continues to grow and is being used in a number of high profile projects, including Calgary's landmark Bow Tower project; a 58 story building, which will be the second-largest office complex in Canada, a water treatment plant project near Los Angeles, California, and the Brayton Point Station Cooling Towers Project in Somerset, Massachusetts where two 500-foot tall concrete cooling towers are being constructed by Kiewit Corporation for Dominion Energy, Inc.
To date, Whitemud(MK) has been successfully sold for use in a number of applications, including city sidewalks, residential basement floors, commercial concrete floors, precast concrete tanks, precast concrete jersey barriers, bridge decks, parking structures, water treatment plant construction, underground mineshaft shotcrete, and stucco. Regular shipments of Whitemud(MK) have been delivered to the Canadian oil and gas well cementing industry for specialized lightweight cementing applications to date. Customers have indicated that based on their experience with the performance and the demonstrated economic benefits of Whitemud(MK) they expect to significantly expand their use of Whitemud(MK) to a wider range of applications in 2010.
On February 24, 2010, Whitemud completed a Memorandum of Understanding (MoU) with a key concrete industry supplier for the North American distribution of Whitemud(MK) to dramatically improve the Company's ability to grow sales. The terms of the MoU outline the intended role of the distributor and provides a mechanism to commence sales immediately to certain customers before a supply and distribution agreement is completed. Management believes that this industry partner will dramatically enhance the Company's ability to grow sales throughout North America. Whitemud expects the two parties to complete a supply and distribution agreement in the second quarter of 2010.
This financial summary should be read in conjunction with the Company's December 31, 2009 Consolidated 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.
The TSX Venture Exchange does not accept 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 demand for the application of its Whitemud product, expansion in the oil well service industry. 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 expand in the marketplace, and 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, 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