Almonty Achieves Positive EBITDA of $10,243,000 from Mining Operations and Net Income of $0.04 Per Share in
Q1 of FY 2019
Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: 1MR) today announced
the filing of its unaudited interim condensed consolidated financial statements and management’s discussion & analysis for the
three months ended December 31, 2018. Unless otherwise indicated, all currency amounts contained in this news release are expressed
in Canadian dollars.
The following financial information is for the three months ended December 31, 2018 and 2017:
|
|
Three Months |
|
Three Months |
|
|
Ended |
|
Ended |
|
|
31-Dec-18 |
|
31-Dec-17 |
|
|
$'000 |
|
$'000 |
Gross Revenue |
|
16,412 |
|
10,767 |
Mine production costs |
|
8,845 |
|
7,814 |
Impairment recovery |
|
(4,150) |
|
- |
Depreciation and amortization |
|
1,474 |
|
2,272 |
Earnings (loss) from mining operations |
|
10,243 |
|
681 |
|
|
|
|
|
General and administrative costs |
|
1,834 |
|
1,982 |
Earnings (loss) before the under noted items |
|
8,409 |
|
(1,301) |
|
|
|
|
|
Interest expense |
|
648 |
|
617 |
(Gain) Loss on debt settlement |
|
(1,015) |
|
- |
Foreign exchange (gain) loss |
|
1,411 |
|
233 |
Tax provision |
|
108 |
|
- |
Net income (loss) for the period |
|
7,257 |
|
(2,151) |
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 |
|
1,630 |
|
(2,093) |
Cash flows provided by (used in) investing activities |
|
(1,587) |
|
(1,357) |
Cash flows provided by (used in) financing activities |
|
386 |
|
2,712 |
The following financial information is as at December 31, 2018, and September 30, 2018:
|
|
|
31-Dec-18 |
|
30-Sep-18 |
|
|
|
$'000 |
|
$'000 |
Cash |
|
|
9,457 |
|
8,721 |
Restricted cash |
|
|
1,279 |
|
1,245 |
Total assets |
|
|
149,865 |
|
147,302 |
Long-term debt |
|
|
52,605 |
|
50,331 |
Shareholders’ equity |
|
|
50,180 |
|
40,863 |
|
|
|
|
|
|
Other |
|
|
|
|
|
Outstanding shares (‘000) |
|
|
181,442 |
|
181,442 |
Weighted average outstanding shares (‘000) |
|
|
|
|
|
Basic |
|
|
181,442 |
|
178,587 |
Fully diluted |
|
|
181,442 |
|
178,587 |
Closing share price |
|
|
0.65 |
|
0.81 |
Lewis Black, Chief Executive Officer of Almonty commented, “These results are continuing to reflect the go-forward cost
structure and production profile of Almonty. To highlight this, the Company has seen an increase of 795% in EBITDA from mining
operations (before impairment charges or reversals) when compared to the same period in 2017. The Company’s outlook for the
2018/2019 year is positive based on current pricing and demand profiles of the market. As we have recently published on our
website, work continues at our 100% owned Sangdong project. The pilot plant is being assembled after some changes we made to the
layout and it will begin to produce commercial grade finished concentrate by April 2019. There is currently over 3,000 tons of
fresh ore now on surface which is increasing as our mine development continues. We have passed the 250m mark in our mine
development program underground and this continues to confirm the conservatism of our block models. We are now in late stage
negotiation to finalise the equipment orders and the earlier delivery dates for the plant equipment and we anticipate further cost
savings and financing terms from our suppliers to be more favourable than previously anticipated. Our long relationship with these
suppliers at our other mines has enabled us to build a strong commercial relationship and a preferred status in these dealings. We
believe Almonty is well placed to remain the dominant Western supplier of tungsten concentrate.”
About Almonty
The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten
concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its
Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western
Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in
western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located
approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The
Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade
tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining
Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain. Further information about Almonty’s
activities may be found at
www.almonty.com and under Almonty’s SEDAR profile at
www.sedar.com.
Legal Notice
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and
observe such restrictions.
Disclaimer for Forward-Looking Information
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. These statements and information are based on management’s beliefs, estimates and
opinions on the date that statements are made and reflect Almonty’s current expectations.
Forward-looking statements in this press release include, among others, statements regarding Almonty’s future business plans and
operations, the Company’s outlook for the 2018/2019 year, the timeline for its Sangdong mine to produce finished concentrate, the
differences between the Company’s block models and actual results, anticipated future cost savings and future financing terms and
supplier relations.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by
such forward-looking statements. Such risks include, but are not limited to, the risks discussed in the Company’s management
discussion and analysis for the three months ended December 31, 2018 and in its annual information form for the year ended
September 30, 2018.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no
material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for
outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the
ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other
assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements,
there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated
or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results
described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking
statements and are cautioned that actual outcomes may vary.
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.
Non-GAAP Financial Measures
This press release makes reference to certain non-GAAP financial measures. These measures are not recognized measures under
IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further
understanding of Almonty’s results of operations from management’s perspective. Almonty’s definitions of non-GAAP measures used in
this press release may not be the same as the definitions for such measures used by other companies in their reporting. Non-GAAP
measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of
Almonty’s financial information reported under IFRS. Almonty uses non-GAAP financial measures, including “EBITDA”, to provide
investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating
performance or operating conditions, and thus highlight trends in its core business that may not otherwise be apparent when relying
solely on IFRS financial measures. Almonty defines “EBITDA from mining operations” as gross revenue less mine production costs.
Almonty believes that securities analysts, investors and other interested parties frequently use non-GAAP financial measures in
the evaluation of issuers. Almonty’s management also uses non-GAAP financial measures in order to facilitate operating performance
comparisons from period to period.
Lewis Black
Chairman, President and CEO
Telephone: +1 647 438-9766
Email: info@almonty.com
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