Cotec earns $1.45-million in Q2
2024-08-07 18:18 ET - News Release
Mr. Julian Treger reports
COTEC HOLDINGS CORP. FILES SECOND QUARTER 2024 RESULTS WITH CONTINUED FOCUS ON ITS OPERATIONAL ROLL-OUT OPPORTUNITIES
Cotec Holdings Corp. has filed its unaudited interim condensed consolidated financial statements and the accompanying management's discussion and analysis for the three and six months ended June 30, 2024. The financial statements and MD&A can be viewed under the company's SEDAR+ profile.
The company announced comprehensive income for the quarter and the six months ended June 30, 2024, of $1.45-million and $1.42-million, respectively. The comprehensive income was mainly driven by a gain on equity investments offset by the operating costs for the quarter.
Other highlights for the quarter include:
- Initial mineral resource estimate and positive preliminary economic assessment for the Lac Jeannine iron tailings project completed on time and within budget; initial inferred mineral resource of approximately 73 million tonnes at 6.7 per cent total iron for 4.9 Mt of contained total Fe; pretax net present value discounted at 7 per cent of $93.6-million (U.S.) and internal rate of return of 38 per cent, and after-tax NPV discounted at 7 per cent of $59.5-million (U.S.) and an IRR of 30 per cent excluding potential benefit of adjacent tailings;
- Good progress at HyProMag USA LLC bankable feasibility study and remains on schedule for release prior to end of 2024 fiscal year;
- MagIron (equity investment) has signed long-term mineral leases that provide further operational and economic support for the restart of MagIron's Plant 4 iron ore concentrator; when combined with iron-bearing stockpiles already owned by MagIron, the aggregate iron-bearing materials secured could be sufficient to support Plant 4 for more than 20 years of operation, targeting annual production of 2.5 million dry tonnes per year of direct reduction grade iron concentrate;
- Appointed Linda Lourie to the board of directors for HyProMag USA, effective June 24, 2024;
- Joined the Rare Earth Industry Association to work with REIA and other stakeholders to support the rollout of the HyProMag technology;
- Raised gross proceeds of $2.6-million through a non-brokered private placement.
Julian Treger, chief executive officer of the company, commented: "We were very pleased with the outcome of the Lac Jeannine PEA, which shows significant value, far exceeding our current market valuation, having used only part of the total Lac Jeannine tailings material. Our immediate focus for Lac Jeannine is the permitting and execution of our 2024 drill program, which will form the basis of our feasibility study. We will also begin commencing detailed discussions with all relevant local, federal and first nation stakeholders to progress the project.
"The HyProMag USA feasibility study is progressing well, and we have commenced discussions with various potential stakeholders, including U.S. government agencies. We are very pleased with the reception we have received in all our meetings to date, and we expect to complete the feasibility on time.
"First revenue from HyProMag USA is still targeted in 2026. If successful, this truncated timeline will confirm the effectiveness of the Cotec strategy to bring production and revenues to market in an expedited manner, with a much reduced environmental footprint and lower capital intensity than traditional mining projects.
"Insiders of Cotec continue to support the company through purchases in the open market and participation in private placements. During the quarter, insiders have contributed more than $2-million through private placement participation and a further $2.75-million after quarter-end."
The PEA is preliminary in nature and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. As such, there may be no certainty that the PEA will be realized.
Qualified person
The independent qualified person as defined by National Instrument 43-101 for the Lac Jeannine mineral resource, Christian Beaulieu, PGeo, is a member of l'Ordre des geologues du Quebec (No. 1072). The qualified person has reviewed and approved the scientific and technical content of this news release relating to the Lac Jeannine mineral resource.
About Cotec Holdings Corp.
Cotec is a publicly traded investment issuer listed on the TSX Venture Exchange and the OTCQB, and trades under the symbol CTH and CTHCF, respectively. The company is an environment, social and governance focused company investing in innovative technologies which have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the company transitions into a mid-tier mineral resource producer.
Cotec is committed to supporting the transition to a lower-carbon future for the extraction industry, a sector on the cusp of a green revolution, as it embraces technology and innovation. The company has made four investments to date and is actively pursuing operating opportunities where current technology investments could be deployed.
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