https://564aacbf-69b6-464a-a063-131897e505a0.filesusr.com/ugd/5d173e_ff521c5ad755415ea6642800ea20bc12.pdf Rogue Update: Landscape Stone Sales continue through April and May, Extends Debt Facility
June 7, 2021
• In April-May Rogue Stone sold 4,490 tons realizing an average price of $86/ton
• Average value of limestone sold continues to rise with increased demand for higher value products
• Extended the term on the existing $1.8M debt financing to December 3, 2021
TORONTO, ON – Rogue Resources Inc. (TSX-V: RRS) (“Rogue” or the “Company”) is pleased to announce that Quarry Operations for Rogue Stone continued through the spring and early summer with growing demand for Rogue’s limestone products. During the months of April and May, the Company sold a total of 4,490 tons of limestone for gross revenue of $387,296 and are in line with the sales expectations. Rogue Stone has also seen an increase in the value of the limestone sold as the demand for the higher value limestone products, including steps, wall stone and flagstone, begins to pick up with the arrival of the warmer weather.
Period. Tons. Average Realized Revenue per ton sold. Average Cost of Goods (“COGS”) per ton sold
Q3-2021 (Nov 2020 – Jan 2021). 6914. $70
February – March. 3,314. $74
April – May. 4,490. $86
Feb- April to be announced with Q4-2021 results
“We are pleased to see that the demand and sales of limestone continue to meet or exceed expectations.”, said Sean Samson, President and CEO of Rogue. “We anticipate that our sales volume will continue to increase through the summer.
Debt Financing- extending current facility
Rogue has elected to extend its $1.8M debt financing (the “Debt Facility”) with a leading Canadian, non-bank lender (the “Credit Group”). The Debt Facility is secured against all of the Company’s assets and will be extended for 6 months. The financing originally had a 12-month term, to which 3 months were added almost immediately when the Company negotiated relief around the early impact of COVID-19 (for further detail see the March 5, 2020 and April 27, 2020 news releases). The Debt Facility has interest-only payments until the principal is due in full at maturity, carrying an interest rate equal to the higher of prime plus 8.05% or 12%. There were no penalties or further fees related to the extension.
“Though expensive, the Debt Facility has financed the acquisition and growth of the Rogue Stone business and allowed the Company to pivot into a new cash flowing business”, said Mr. Samson. “The Credit Group have been good partners, especially through the early challenges of the pandemic, but I look forward to securing lower interest financing after another spring and summer of performance from the stone business.”