EDMONTON, Alberta, Might 22, 2020 (GLOBE NEWSWIRE) — Athabasca Minerals Inc. (“AMI” or the “Company”) (TSXV:AMI) declares its monetary outcomes for the primary quarter ended March 31, 2020. The Company’s monetary statements and administration’s dialogue and evaluation (“MD&A”) can be found on SEDAR at www.sedar.com and on the Athabasca Minerals Inc. web site at www.athabascaminerals.com.
Robert Beekhuizen, Chief Govt Officer, states: “In 2020, we proceed to advance our company methods with regular progress in remodeling, diversifying, and creating worth throughout the Company’s companies. Our base division, AMI Aggregates, has been strengthened with the Coffey Lake Pit opening forward of schedule and from early income technology in Q1-2020. It has additionally expanded geographically with its 50% joint-venture curiosity within the Buckhorn Quarry Undertaking positioned 90 minutes from the Higher Toronto Space, the place regulatory and allowing processes are underway. AMI RockChain continues to expertise ongoing and rising demand primarily based on a lot of challenge bids in Q1-2020 the place the RockChainTM platform and related algorithm are getting used extensively to optimize provide and supply of aggregates. We additionally proceed to make good progress with AMI Silica’s Duvernay Silica Sand Undertaking. We proceed to collaborate with our pending associate to replace front-end engineering and improvement (FEED) in relation to challenge necessities, synergies and joint curiosity.”
“Within the midst of the COVID-19 pandemic and ensuing financial downturn, AMI has responded with ‘safety-first’ mindset and protocols. We’ve got additionally proactively tailored to and adjusted for fluctuations in enterprise rhythm within the development and power markets with a collection of measures proactively taken to cut back and optimize payroll by roughly 30% in any respect ranges of the corporate, together with the Board of Administrators. We’re centered on preserving our money place all through 2020 to maintain progress in advancing our strategic initiatives and company goals.”
Q1 2020 HIGHLIGHTS
Athabasca Minerals reviews the next key highlights in Q1 2020:
- The Company was awarded a 15-year contract with a 10-year renewal possibility in Q1 2019 to function and handle the Coffey Lake Public Pit positioned roughly 90 km north of Fort McMurray. Efficient January 13, 2020, the Province of Alberta issued the Company a disposition for the Coffey Lake Pit and a Floor Mineral Lease that enables for the extraction of sand and gravel. This authorization enabled the Company, because the pit administration contractor on behalf of the Province of Alberta, to start actions to start mixture operations at Coffey Lake to the general public;
- On January 28, 2020, the Company entered right into a mortgage association with Canadian Western Financial institution (“CWB”) whereby $1.5 million was superior to the Company by CWB for the event of the Coffey Lake Pit;
- On March 18, 2020, Alberta Setting & Parks granted the Company a disposition for a industrial lease for stockpiling and crushing aggregates on 74 acres (30 hectares) of land strategically positioned 7 km from the Coffey Lake Public Pit within the neighborhood of oilsands operations. The True North Staging Hub provides additional worth with supplementary providers for mixture crushing, processing and stock administration;
- On March 21, 2020, the Coffey Lake Pit started producing gross sales and income for the bottom division (AMI Aggregates) forward of schedule. Within the first three weeks of operations, loading exercise at Coffey Lake was strong with its first order being executed for roughly $560,000. This order had been dedicated to previous to the onset of COVID-19;
- On February three, 2020, AMI Silica Inc and Shell Canada (“Shell”) ratified a Grasp Buy Contract to buy Premium Home sand from AMI’s Duvernay Basin Silica Undertaking efficient July 1, 2021. Below phrases of the contract, there’s a minimal gross sales quantity at predetermined costs, with an non-compulsory most annual quantity that books a good portion of the Duvernay Undertaking manufacturing capability. The contract has a five-year time period from the efficient supply date, and offers Shell the fitting to increase for a further two 12-month phrases thereafter, with the choice to acquire sand from AMI’s future Montney In-Basin Silica Undertaking as properly;
- A strategic joint-venture (JV) was established with MGT Administration Inc. to develop the Buckhorn limestone quarry on 300 acres (121 hectares) of land in Ontario, roughly 90 minutes from the Higher Toronto Space. The JV expands the Company’s enterprise pursuits to entry one of many largest mixture consumption markets within the nation;
- The Company’s subsidiary Aggregates Advertising and marketing Inc rebranded to AMI RockChain Inc. in February 2020. This rebranding included a brand new web site with improved performance: www.amirockchain.com;
- AMI RockChain surpassed a $1 million order-size milestone on a rail transload challenge for a big industrial buyer with operations in central Alberta. The challenge was executed over 5 months and was accomplished in March 2020. Over 15,000 tonnes of specialised rail ballast product had been delivered with AMI’s taking part community of suppliers, and transportation firms who had been integral to the optimized RockChain™ answer;
- AMI Silica forwent exercising the buy-out choices at pre-determined valuations of $eight million every for the remaining 50.eight% and 50.four% of the Montney and the Duvernay premium home in-basin sand tasks respectively, because of market situations and aggressive pricing issues; and
- Despite COVID-19, AMI RockChain is engaged in a lot of bids, that are recurrently tracked and gathered on www.amirockchain.com. In Q1 2020, the subsidiary surpassed 100 bids representing a mixed potential provide of as much as 1.1 million tonnes serving 50 firms. The RockChain™ digital platform with its Operational Excellence program, its ‘Asset-Lite’ enterprise mannequin, and Well being & Security protocols have confirmed uniquely well-suited for at this time’s enterprise setting. Buyer orders for aggregates are simply positioned remotely for jobs throughout Western Canada and executed with high quality assurance whereas minimizing Well being & Security danger publicity.
Fiscal Administration & Reporting
- AMI stays centered on preserving its money place. In Q1 2020 there have been preliminary payroll reductions leading to roughly a 10% price enchancment in comparison with the earlier Quarter. With the onset of COVID-19, in Q2 2020 a second spherical of payroll reductions and optimizations in any respect ranges of the corporate are being applied, as much as and together with the Board of Administrators. The cumulative payroll price enhancements year-to-date at the moment are roughly 30%. Monitoring and optimization alternatives will proceed to obtain ongoing scrutiny and a spotlight relative to macro-economic elements from COVID-19 and the Company’s enterprise exercise ranges.
- Moreover, AMI continues to pursue strategic partnering and joint-venture relationships that may advance its industrial minerals development methods, diversify its income technology, and improve choices for entry to lower-cost capital funding; and
- The Company applied new well being and security insurance policies and protocols in response to the COVID-19 pandemic. The Company’s enterprise continuity plan incorporates authorities advisable practices with consideration of the well being and security of its staff, area operations, and clients. The Company and its subsidiaries have been in a position to safely proceed operations.
- In April, 2020, AMI Silica, along with a pending industrial associate, issued a aggressive tender to 5 pre-qualified contractors in Canada and the USA to replace Entrance-Finish Engineering & Improvement (FEED) for its Duvernay Basin Silica Undertaking, with the choice to transform to EPC (Engineer, Procure, Assemble) thereafter when the challenge is absolutely financially sanctioned and permits are obtained. AMI Silica goals at growing what it, and its bidders additionally regard because the ‘greenest’ silica sand processing facility in North America, primarily based on distinctive synergies, for a goal worth underneath $40 million for Part-1 improvement. Sand merchandise and by-products will likely be serving buyer demand within the power, development supplies and environmental remediation sectors;
- The Company appointed J. Robert Logan, MBA, ICD.D as Advisor to AMI’s Board of Administrators with regard to the Company’s strategic enterprise pursuits in 2020 and capital markets;
- Buckhorn engaged in allowing to be in manufacturing in 2H 2021 (pending regulatory evaluate);
- The Company has undertaken a number of monetary initiatives in response to the COVID-19 pandemic:
- On April 16, 2020, Athabasca secured a $40,000 mortgage for AMI Silica, and one other $40,000 mortgage for AMI RockChain by the Canadian Emergency Enterprise Account (CEBA) program to assist the companies by the COVID-19 pandemic. Each loans are curiosity free and require no principal funds till December 2022;
- AMI utilized for the Canadian Emergency Wage Subsidy (CEWS) program to assist the companies by the COVID-19 pandemic. AMI obtained the primary month-to-month subsidy of $44,044 on Might 11, 2020;
- Principal reimbursement of the $1,500,000 financial institution mortgage purposed for Coffey Lake Public Pit and the True North Staging Hub development was deferred three months with interest-only fee phrases, from Might to July 2020; and
- On Might 7, 2020, Athabasca introduced that it postponed it’s 2020 Annual Common Assembly till a later date because of the influence and constraints related to COVID-19 when it comes to social gatherings and journey. The Company is addressing venue and timing choices in relation to the federal government’s phased re-opening and restriction leisure program. The potential for holding a digital AGM can also be being thought of in its place.
|($ 1000’s of CDN,||Three Months Ended Mar 31|
|except in any other case famous)||2020||2019|
|Combination gross sales income||$||489||zero|
|Administration providers income||271||434|
|Gross (loss) revenue||41||(136||)|
|Whole loss and complete loss||(816||)||(1,055||)|
|Internet money generated (used) within the interval||(259||)||198|
|Loss per share ($ per share)|
- Income throughout Q1 2020 was $zero.eight million in comparison with $zero.four million in Q1 2019, due mixture gross sales from AMI RockChain of $zero.5 mm, offset by lower in administration providers income from AMI Aggregates division ($zero.three million in Q1 2020 versus $zero.four million in Q1 2019). The lower in Q1 2020 administration providers revenues was because of the Coffey Lake Pit beginning its operations in late March of 2020 as in comparison with aggregates being offered from a totally operational Susan Lake Pit throughout Q1 of 2019.
- Gross revenue (loss) of $nil in Q1 2020 in comparison with a gross lack of $zero.1 million in Q1 2019. The $zero.1 lower in gross (loss), because of greater revenues but additionally barely greater working prices in Q1 2020 versus Q1 2019. The rise in working prices was partially offset by decrease Q1 2020 working prices for Coffey Lake with the pit’s operations solely simply starting on the finish of Q1 2020, whereas in Q1 2019 Susan Lake pit operations had been absolutely operational for the complete quarter.
- Whole loss and complete loss for the three months ended March 31, 2020 of $zero.eight million, $zero.zero18 per share fundamental and diluted in Q1 2020, in comparison with a complete complete lack of $1.1 million, $zero.026 per share fundamental and diluted, for Q1 2019.
- Internet working capital of $1.9 million as at March 31, 2020 (December 31, 2019: $2.eight million) which in administration’s opinion is ample to fund ongoing operations. The lower in Q1 working capital was predominately because of recording the present portion of financial institution financing secured in Q1 2020 which amounted to $zero.three million, a rise of $zero.three million in accounts payable and a lower in accounts receivable of $zero.three million.
In 2020, the Company is positioning for development throughout every of its three divisions: AMI Aggregates, AMI Silica, and AMI RockChain.
The bottom division will generate revenues from industrial operations and manufacturing on the Coffey Lake Public Pit, in addition to its True North Staging Hub; each positioned within the high-demand area of oilsands industrial area.
Royalty agreements stay in place to earn revenues from strategic companions keen on harvesting aggregates from a number of AMI company pits.
AMI can also be pursuing pit administration providers and leveraging its experience to assist First Nation companions, authorities and/or municipality sources or current operations.
A strategic three way partnership (“JV”) relationship has been established for the event of the Buckhorn Quarry in Ontario, roughly 90 minutes from the Higher Toronto Space (“GTA”). The Undertaking JV is presently engaged within the regulatory and allowing course of with the purpose to be in manufacturing in 2H 2021 topic to approval timing. AMI intends to pursue an identical JV strategy for the event of the Company’s Richardson Quarry Undertaking north of Fort McMurray over the following 2 years and is engaged in ongoing discussions with doubtlessly events.
The Company presently has listed non-core gravel belongings for disposition with the intention to improve its money place.
AMI RockChain is ‘a midstreamer of aggregates, enabled by expertise’. The subsidiary is uniquely centered on enhanced worth/supply options in mapping buyer orders to aggregates suppliers and transportation firms utilizing expertise for larger velocity and effectivity. AMI RockChain purchases and takes custody of aggregates utilizing its ‘Resolution Finder’ algorithm together with its RockChainTM digital platform. This offers AMI RockChain distinctive benefits within the scope of its outreach, its potential to deal with a big quantity of bids, and within the turnaround time for networking optimum options for purchasers requiring aggregates. AMI RockChain is moreover bolstered by an in-house High quality Management/High quality Assurance program to make sure buyer necessities are met upon supply.
AMI RockChain is targeted on continued development by increasing its geographic protection throughout Western Canada and from elevated buyer functions throughout varied market-sectors. The subsidiary can also be centered on steady enhancements and developments regarding expertise improvement, operational excellence, its provide chain knowledge community, rising key purchasers and servicing repeat clients.
AMI Silica’s Duvernay Undertaking will proceed to advance with precedence given its five-year offtake settlement with Shell Canada Vitality. The event program is presently centered on revising the Entrance-end Engineering & Improvement (FEED) in collaboration with a pending industrial associate, acquiring permits, and thereafter confirming Monetary Funding Resolution (FID) to proceed to Execution.
AMI Silica’s Montney Silica Sand Delineation & Improvement program is being re-adjusted for cashflow administration functions in relation to concurrent calls for associated to the Duvernay Undertaking. Along with its current joint-venture (JV) associate, ‘Privco’, the events are taking a measured strategy regarding expenditures with the intention to affirm probably the most appropriate and cost-effective location for improvement inside the 370,650-acre (150,000 hectare) space during which the JV holds mineral leases.
Mergers, Acquisitions & Strategic Joint Ventures
AMI continues to be energetic with screening, assessing, and reviewing acquisition and three way partnership funding alternatives which can be synergistic to the Company’s portfolio, accretive, and in a position to increase revenues within the use and software of business minerals.
COVID-19 is having an hostile influence on international financial situations, which has had an hostile impact on the Company’s enterprise and monetary place. The magnitude of the monetary influence to the Company from COVID-19 stays unsure. Athabasca Minerals is navigating the state of affairs on an ongoing foundation with respect to creating acceptable and prudent enterprise choices, together with right-sizing the group accordingly. The Company’s divisions and related operations have been deemed a vital enterprise supporting development, infrastructure and the power sector. AMI will proceed to observe and cling to the required protocols to make sure compliance and to mitigate the dangers to workers, and to key stakeholders in its provide chain.
INVESTOR UPDATE WEBCAST
AMI will host a webcast for traders, analysts and stakeholders to debate the Company’s Q1 2020 working outcomes and the prevailing working setting.
A webcast hyperlink and associated presentation materials will likely be accessible on the ‘Buyers Data’ web page of the Company’s web site at https://www.athabascaminerals.com/. A replay of the occasion will likely be offered on the identical location following the occasion.
ABOUT ATHABASCA MINERALS INC. (AMI)
Athabasca Minerals Inc. (www.athabascaminerals.com) is an built-in group of firms centered on the aggregates and industrial minerals sectors, together with useful resource improvement, aggregates midstream supply-logistics options. Enterprise actions embrace mixture manufacturing, gross sales and royalties from corporate-owned pits, administration providers of third-party pits, acquisitions of sand and gravel operations, and new enterprise improvement.
Athabasca Minerals Inc. is the mum or dad firm of AMI RockChain Inc. (previously Aggregates Advertising and marketing Inc.) (www.amirockchain.com) – a midstream technology-based enterprise utilizing its proprietary RockChain™ digital platform, related Resolution-Finder algorithm and QA/QC providers to offer cost-effective built-in provide /supply options of business minerals to business, and the development sector.
Additionally it is the mum or dad firm of AMI Silica Inc.(www.amisilica.com) – a subsidiary positioning to grow to be a number one provider of premium home in-basin sand with regional deposits in Alberta and NE British Columbia. It’s the three way partnership proprietor of the Montney In-Basin and Duvernay Basin Frac Sand Tasks. Moreover, the Company has industrial mineral leases, comparable to these supporting AMI’s Richardson Quarry Undertaking, which can be strategically positioned for future improvement in industrial areas with traditionally and constantly excessive demand for aggregates.
For additional info on AMI, please contact:
Robert Beekhuizen, Chief Govt Officer
Tel: 587-525-9610 / Electronic mail: firstname.lastname@example.org
Tanya Finney, Director, Investor and Stakeholder Relations
Tel: 587-391-0548 / Electronic mail: email@example.com
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