Revenue of $3,574 million and EBITDA1 of $0.368 million for the third quarter of fiscal 2013
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
TORONTO, Aug. 28, 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 and nine month periods ended June 30, 2013. Unless
otherwise indicated, all currency amounts contained in this news
release are in thousands of Canadian dollars.
Almonty reported revenue of $3,574, gross profit of $1,395 representing
a gross profit margin of 39.0%, EBITDA1 of $368 and net loss of ($1,656) for the three month period ended June
30, 2013.
Included in the net loss was a write-down of $527 related to the loss of
equipment from the fire that occurred June 23, 2013 (see press release
dated June 24, 2013). Almonty has reached a settlement with its
insurance carrier for $949, net of deductibles, to cover the
replacement value of the machinery and equipment as that was destroyed
as well as a substantial portion of business interuption costs incurred
as a result of the fire. Almonty expects to recognize a gain from
insurance of $949 (equivalent to approximately $0.03 per basic share
outstanding) during Q4 2013 when it expects to receive the insurance
proceeds.
Almonty mined 113,160 tonnes of ore at a weighted average grade of 0.37%
WO3 for the three month period ended June, 2013.
The Company produced 12,336 MTUs of tungsten concentrate during the
three months ended June 30, 2013. Tungsten concentrate recovery for
the three month period ended June 30, 2013 averaged 56.9%. The
reduction in both MTU production and the tungsten recovery rate, when
compared to prior periods, was directly attributable to the forced shut
down due to the fire as well as shutdowns during May to install the
final components of the mineral processing optimization equipment.
Subsequent to the restart of mineral processing operations in July and
the fine-tuning of the newly installed equipment, tungsten recovery
rates have stabilized at the 65% level.
The Company shipped 12,063 MTU of high grade concentrate (65.0% or
higher WO3) and 900 MTU of low grade concentrate (between 45.0% and 65.0% WO3) during the three months ended June 30, 2013.
Production levels for the three months ended June 30, 2013 totalled
12,336 MTU of WO3 concentrate. Cash operating costs for the three months ended June 30,
2013 were negatively impacted by the various shut-downs and increased
to US$198/MTU during the period. Going forward the Company expects to
be back on trend to its long range cost target of US$ 125-135 per MTU
as a result of the completed optimization to the processing plant and
savings from its pending connection to the Spanish state electricity
grid in September 2013. 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) production costs were €152/MTU.
Summary operating information:
|
|
Three Months
Ended June 30,
2013
|
Three Months
Ended June 30,
2012
|
Nine Months
Ended June 30,
2013
|
Nine Months
Ended June 30,
2012
|
Year Ended
September 30,
2012
|
Year Ended
September 30,
2011
|
|
Ore treated (tonnes)
|
114,347
|
116,166
|
339,074
|
356,688
|
476,591
|
441,976
|
|
WO3 concentrate produced (MTU)
|
12,336
|
16,136
|
47,796
|
48,324
|
65,848
|
61,599
|
|
WO3 concentrate sold (MTU)
|
12,963
|
14,986
|
52,119
|
47,842
|
66,419
|
52,807
|
|
Sales revenue (US$ million)
|
3.7
|
4.9
|
13.7
|
16.5
|
21.5
|
15.0
|
|
Cash operating costs (US$/MTU)
|
198
|
187
|
160
|
189
|
183
|
193
|
|
Ore mined (tonnes)
|
113,160
|
113,492
|
400,974
|
347,574
|
462,221
|
482,968
|
|
Average grade WO3 mined
|
0.37%
|
0.28%
|
0.34%
|
0.27%
|
0.28%
|
0.32%
|
|
Average WO3 recovery rate
|
56.9%
|
58.1%
|
61.7%
|
57.1%
|
57.8%
|
52.3%
|
Lewis Black, Chief Executive Officer of Almonty commented, "Q3 was a
challenging quarter operationally as a result of the fire.
Fortunately, with the optimization of the processing plant now complete
with our tungsten recovery rate at our minimum target of 65%, expected
future savings from our pending connection to the state electricity
grid and our anticipated $949 pending insurance settlement, the Company
is well positioned to capitalize on improving market fundamentals and
increasing APT prices during the balance of fiscal 2013 and into fiscal
2014."
The following financial information is for the three and six month
periods ended March 31, 2013 and 2012:
|
|
|
|
|
Three Months
Ended
June 30,
2013
$'000
|
|
|
Three Months
Ended
June 30,
2012
$'000
|
|
Gross Revenue
|
|
|
|
3,574
|
|
|
4,802
|
|
Cost of sales
|
|
|
|
2,179
|
|
|
2,563
|
|
Gross profit
|
|
|
|
1,395
|
|
|
2,239
|
|
General and administrative costs
|
|
|
|
780
|
|
|
788
|
|
Other expense (income)
|
|
|
|
81
|
|
|
(68)
|
|
Non-cash compensation costs (options issued to directors, officers and
key management)
|
|
|
|
166
|
|
|
69
|
|
Earnings (loss) before the undernoted items
|
|
|
|
368
|
|
|
1,450
|
|
Depreciation and amortization
|
|
|
|
1,421
|
|
|
1,170
|
|
Interest expense
|
|
|
|
76
|
|
|
17
|
|
Loss on disposal of machinery and equipment due to fire
|
|
|
|
527
|
|
|
-
|
|
Deferred income tax expense (recovery)
|
|
|
|
-
|
|
|
-
|
|
Net income (loss) for the period
|
|
|
|
(1,656)
|
|
|
263
|
|
Income (loss) per share basic
|
|
|
|
($0.04)
|
|
|
$0.01
|
|
Income (loss) per share diluted
|
|
|
|
($0.04)
|
|
|
$0.01
|
|
Dividends
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by (used in) operating activities
|
|
|
|
(36)
|
|
|
2,635
|
|
Cash flows provided by (used in) investing activities
|
|
|
|
(3,352)
|
|
|
(2,583)
|
|
Cash flows provided by (used in) financing activities
|
|
|
|
5,949
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
June 30,
2013
$'000
|
|
|
Nine Months
Ended
June 30,
2012
$'000
|
|
Gross Revenue
|
|
|
|
13,611
|
|
|
16,251
|
|
Cost of sales
|
|
|
|
7,138
|
|
|
8,590
|
|
Gross profit
|
|
|
|
6,473
|
|
|
7,661
|
|
General and administrative costs
|
|
|
|
2,318
|
|
|
2,230
|
|
Other expense (income)
|
|
|
|
127
|
|
|
(145)
|
|
Non-cash compensation costs (options issued to directors, officers and
key management)
|
|
|
|
196
|
|
|
221
|
|
Earnings (loss) before the undernoted items
|
|
|
|
3,832
|
|
|
3,905
|
|
Depreciation and amortization
|
|
|
|
4,414
|
|
|
3,921
|
|
Interest expense (income)
|
|
|
|
117
|
|
|
44
|
|
Loss on disposal of machinery and equipment due to fire
|
|
|
|
527
|
|
|
|
|
Deferred income tax expense (recovery)
|
|
|
|
-
|
|
|
-
|
|
Net income (loss) for the period
|
|
|
|
(1,226)
|
|
|
1,390
|
|
Income (loss) per share basic
|
|
|
|
($0.03)
|
|
|
$0.04
|
|
Income (loss) per share diluted
|
|
|
|
($0.03)
|
|
|
$0.04
|
|
Dividends
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by (used in) operating activities
|
|
|
|
4,526
|
|
|
6,192
|
|
Cash flows used in investing activities
|
|
|
|
(8,631)
|
|
|
(6,485)
|
|
Cash flows provided by financing activities
|
|
|
|
5,918
|
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2013
|
|
|
Sept. 30, 2012
|
|
Cash
|
|
|
|
2,900
|
|
|
1,052
|
|
Total assets
|
|
|
|
35,957
|
|
|
27,966
|
|
Long-term trade payables
|
|
|
|
638
|
|
|
556
|
|
Long-term debt
|
|
|
|
6,379
|
|
|
-
|
|
Capital lease obligations
|
|
|
|
116
|
|
|
148
|
|
Shareholders' equity
|
|
|
|
22,335
|
|
|
21,649
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
Outstanding shares ('000)
|
|
|
|
37,044
|
|
|
37,044
|
|
Weighted average outstanding shares ('000)
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
37,044
|
|
|
37,023
|
|
Fully diluted (treasury method)
|
|
|
|
37,044
|
|
|
37,047
|
|
Closing share price
|
|
|
|
$1.08
|
|
|
$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.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date that statements are made. The
forward-looking statements and information in this press release
include, without limitation, information relating to the intentions of
management, expected insurance coverage and proceeds, long range cost
targets, connection to state electricity and expected cost savings.
Such statements and information reflect the current view of Almonty and
known or unknown risks and uncertainties 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. Important risk factors that could cause actual results to
differ materially include the risk factors discussed in Almonty's
annual and interim management's discussion and analysis, and annual and
interim financial statements and the notes thereto. These documents are
available at www.sedar.com. 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.
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.
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.
