TORONTO--(BUSINESS WIRE)--Nov 14, 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 and twelve months ended September 30, 2019.
The Company provided notice, pursuant to Section 4.8(2) of National Instrument 51-102, that it has determined to change its financial year-end from September 30 to December 31 in order to allow it to complete the audit requirements of its investee companies with greater efficiency and to better align the Company’s financial reporting periods to that of its peer group in the mineral resources sector, which will allow investors to more easily compare quarterly and annual financial results. The annual audited financial statements of the transition year will be 15 months and will include the period starting October 1, 2018 and ending December 31, 2019.
Unless otherwise indicated, all currency amounts contained in this news release are expressed in Canadian dollars.
The following financial information is for the three and twelve months ended September 30, 2019 and 2018:
|Three months ended||Three months ended||Twelve months ended||Twelve months ended|
|Mine production costs|
|Reversal of impairment loss|
|Depreciation and amortization|
|Earnings from mining operations|
|General and administrative costs|
|Non-cash compensation costs|
|Earnings before the under noted items|
|(Gain) Loss on debt settlement|
|Foreign exchange (gain) loss|
|Net income (loss) for the period|
|Income (loss) per share - basic|
|Income (loss) per share - diluted|
|Cash flows provided by (used in) operating activities|
|Cash flows provided by (used in) investing activities|
|Cash flows provided by (used in) financing activities|
The following financial information is as at September 30, 2019, and September 30, 2018:
|Outstanding shares (‘000)|
|Weighted average outstanding shares (‘000)|
|Closing share price|
Lewis Black, Chief Executive Officer of Almonty commented: “The Company’s outlook for the 2019 year remains positive, even with the dramatic 33% decline in tungsten prices. During the twelve months ended September 30, 2019, we accomplished the reduction of accounts payables and accrued liabilities by a further $10.5M or 40.1% and recorded a positive EBITDA from mining operations of $19,198,000 (before recognizing a $4,150 gain from impairment reversal). We are continuing to advance our Valtreixal property in Spain, finalizing the planning for relocating the Los Santos processing plant to Valtreixal, commence a 10 year forward mine development plan at the Panasqueira mine in Portugal and continue to develop our Sangdong mine project in South Korea. As we have recently published on our website, work continues at our 100%-owned Sangdong project. The pilot plant is commissioned after some changes we made to the layout and it has begun to produce commercial grade finished concentrate. There is currently over 5,000 tons of fresh ore now on surface which is increasing as our mine development continues. We are moving toward the closing of the previously announced financing for Sangdong with KfW-IPEX Bank and hope to update the market shortly following their successful visit to our Panasquiera mine and their current ongoing visit at Sangdong.”
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.
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’s discussion and analysis for the three and twelve months ended September 30, 2019 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191114005925/en/
CONTACT: Lewis Black
Chairman, President and CEO
Telephone: +1 647 438-9766
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: MINING/MINERALS NATURAL RESOURCES
SOURCE: Almonty Industries Inc.
Copyright Business Wire 2019.
PUB: 11/14/2019 06:21 PM/DISC: 11/14/2019 06:21 PM