/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
Revenue of $5.032 million and EBITDA1 of $1.645 million for the first quarter of fiscal 2013 and tungsten
recovery rate of 64.8% achieved for the month of December
TORONTO, Feb. 14, 2013 /CNW/ - Almonty Industries Inc. ("Almonty" or the "Company") (TSX-V: AII) today announced the filing of its unaudited consolidated
interim financial statements and management discussion & analysis ("MD&A") for the three months ended December 31, 2012. Unless otherwise
indicated, all currency amounts contained in this news release are in
thousands of Canadian dollars.
Almonty reported revenue of $5,032, gross profit of $2,512 representing
a gross profit margin of 49.9%, EBITDA1 of $1,645 and net income of $229 for the three month period ended
December 31, 2012.
Almonty mined 127,928 tonnes of ore at a weighted average grade of 0.37%
WO3 for the three month period ended December 31, 2012. The overall
increase in head grade mined is a result of planned pit optimization
that the Company is continuing to undertake following the completion of
an updated National Instrument 43-101 - Standards of Disclosure for Mineral Projects technical report dated September 30, 2012. The Company believes that
it will be able to continue to further enhance its ability to access
higher grade material in future periods as the pit optimization
continues.
Tungsten concentrate recovery for the three month period ended December
31, 2012 averaged 63.3%, a 5.3% increase over the previous quarter's
recovery rate of 60.0% and culminating in a recovery rate of 64.8% for
the month of December 2012, in-line with Almonty's forecasted 65%
recovery rate by calendar year end 2012.
The Company shipped 17,360 MTU of high grade concentrate (65.0% or
higher WO3) and 1,900 MTU of low grade concentrate (between 45.0% and 65.0% WO3) during the three months ended December 31, 2012.
Production levels for the three months ended December 31, 2012 totalled
19,359 MTU of WO3 concentrate, an increase of 10.5% over the three months ended September
30, 2012. Cash operating costs for the three months ended December 31,
2012 were US$146 /MTU, a decrease of 8.2% over the three months ended
September 30, 2012 and a decrease of 20.2% when compared to the year
ended September 30, 2012. Expressed in Euros (to remove the effect of
varying foreign currency exchange rate movement as the Company incurs
100% of its production costs in Spain) costs declined to €114/MTU, a
decrease of 10.9% over the three months ended September 30, 2012 and a
decrease of 18.6% when compared to the average costs for the year ended
September 30, 2012.
Summary operating information:
|
Three
Months
Ended
December
31, 2012
|
Three
Months
Ended
December
31, 2011
|
Year
Ended
September
30, 2012
|
Ore treated (tonnes)
|
116,151
|
122,673
|
476,591
|
WO3 concentrate produced (MTU)
|
19,359
|
16,889
|
65,848
|
WO3 concentrate sold (MTU)
|
19,260
|
18,045
|
66,419
|
Sales revenue (US$ million)
|
5.0
|
6.3
|
21.5
|
Cash operating costs (US$/MTU)
|
146
|
190
|
183
|
Cash operating costs (Euro/MTU)
|
114
|
162
|
140
|
Ore mined (tonnes)
|
127,928
|
135,557
|
462,221
|
Average grade WO3 mined
|
0.37%
|
0.30%
|
0.28%
|
Average WO3 recovery rate
|
63.3%
|
56.2%
|
57.8%
|
Lewis Black, Chief Executive Officer of Almonty commented, "we have
achieved our minimum targeted tungsten recovery rate on time and below
budget. Q1 2013 was our best production quarter yet and we expect to
continue our momentum into Q2 2013. Our cash operating costs are
continuing to trend down, both in U.S. Dollar and Euro terms, towards
our targeted level of $125-$130 per MTU. The Company continues to
generate positive cash flow despite weakness in the APT commodity price
experienced during Q1. We are starting to see signs of a turning point
in the demand for tungsten concentrate and anticipate a more favourable
APT commodity pricing environment for the balance of fiscal 2013."
The following financial information is for the periods from October 1,
2011 to September 30, 2012 and for the three month periods ended
December 31, 2012 and 2011:
|
Three Months Ended December 31, 2012 $'000
|
Three Months Ended December 31, 2011 $'000
|
Year Ended September 30, 2012 $'000
|
Gross Revenue
|
5,032
|
6,485
|
21,645
|
Cost of sales
|
(2,520)
|
(3,415)
|
(11,106)
|
Gross profit
|
2,512
|
3,070
|
10,539
|
General and administrative costs
|
(820)
|
(734)
|
(3,104)
|
Other income (expense)
|
(32)
|
75
|
31
|
Non-cash compensation costs (options issued to
directors, officers and key management)
|
(15)
|
(45)
|
(263)
|
Earnings (loss) before the undernoted items
|
1,645
|
2,366
|
7,203
|
Depreciation and amortization
|
(1,399)
|
(1,608)
|
(4,863)
|
Interest expense
|
(17)
|
(12)
|
(66)
|
Deferred income tax (expense) recovery
|
-
|
-
|
141
|
Net income (loss) for the period
|
229
|
746
|
2,415
|
Income (loss) per share basic
|
$0.01
|
$0.02
|
$0.07
|
Income (loss) per share diluted
|
$0.01
|
$0.02
|
$0.07
|
Dividends
|
-
|
-
|
-
|
|
|
|
|
Cash flows provided by (used in) operating activities
|
1,712
|
2,467
|
8,612
|
Cash flows used in investing activities
|
(2,512)
|
(1,772)
|
(8,835)
|
Cash flows provided by financing activities
|
(15)
|
150
|
119
|
|
|
|
|
|
December 31, 2012
|
December 31, 2011
|
September 30, 2012
|
Cash
|
252
|
1,052
|
1,052
|
Total assets
|
30,253
|
27,966
|
27,966
|
Long-term trade payables
|
584
|
556
|
556
|
Capital lease obligations
|
138
|
200
|
148
|
Shareholders' equity
|
22,716
|
20,730
|
21,649
|
|
|
|
|
Other
|
|
|
|
Outstanding shares ('000)
|
37,044
|
37,011
|
37,044
|
Weighted average outstanding shares ('000)
|
|
|
|
|
Basic
|
37,044
|
37,011
|
37,023
|
|
Fully diluted (treasury method)
|
37,069
|
37,036
|
37,047
|
Closing share price
|
$1.07
|
$1.00
|
$0.94
|
About Almonty
The principal business of Toronto, Canada based Almonty Industries Inc.
(TSX-V: AII) is the mining, processing and shipping of tungsten
concentrate from its tungsten mine at the Los Santos Project. The Los
Santos Project was acquired by Almonty in September 2011. The mine was
originally opened in 2008 and commissioned in July 2010 by its former
owner. The Los Santos Project is located approximately 50 kilometres
from Salamanca in western Spain and produces tungsten concentrate.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information
that are based on the beliefs of management and reflect Almonty's
current expectations. When used in this press release, the words
"estimate", "project", "belief", "anticipate", "intend", "expect",
"plan", "predict", "may" or "should" and the negative of these words or
such variations thereon or comparable terminology are intended to
identify forward-looking statements and information.
The forward-looking statements and information in this press release
include information relating to the intentions of management. Such
statements and information reflect the current view of Almonty with
respect to risks and uncertainties that may cause actual results to
differ materially from those contemplated in those forward-looking
statements and information.
By their nature, forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements, or other future events, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date that statements are made and Almonty
undertakes no obligation to update forward-looking statements if these
beliefs, estimates and opinions or other circumstances should change.
Investors are cautioned against attributing undue certainty to
forward-looking statements. Almonty cautions that the foregoing list of
material factors is not exhaustive. When relying on Almonty's
forward-looking statements and information to make decisions, investors
and others should carefully consider the foregoing factors and other
uncertainties and potential events.
Almonty has also assumed that material factors will not cause any
forward-looking statements and information to differ materially from
actual results or events. However, the list of these factors is not
exhaustive and is subject to change and there can be no assurance that
such assumptions will reflect the actual outcome of such items or
factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE
REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS
RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS
SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND
SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE
ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION
AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE
LAWS.
________________________
1 EBITDA is a non-GAAP metric of the Company's financial performance
that measures earnings prior to deductions of interest, taxes
depreciation and amortization.
SOURCE: Almonty Industries Inc.