EDMONTON, Alberta, May 25, 2018 (GLOBE NEWSWIRE) -- Athabasca Minerals Inc. (“Athabasca” or the “Corporation”) (TSX Venture:ABM) announces its financial results for the first quarter ended March 31, 2018. The Corporation’s financial statements and management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2018 are available on SEDAR at www.sedar.com and on the Athabasca Minerals Inc. website at www.athabascaminerals.com .
Business Highlights
- Sold crushing equipment May 17, 2018 for $1,800,000 and wheel loader May 3, 2018 for $500,040 with proceeds used to repay lease balances of $260,375;
- Susan Lake remains operational under Overholding Tenancy status. Athabasca continues to collect volume-based pit management fees associated with the Pit Users’ removal of surplus stockpiled aggregate material which will continue until a new disposition is granted by with Alberta Environment & Parks (AEP) expected Q2 2018;
- The Susan Lake Closure Plan is under review with AEP and timing for obtaining this approval is revised to Q2 2018. A new Public Lands Administration Regulation (PLAR) Disposition will be included with AEP approval. Due to approval delays, milestones for progressively closing the Susan Lake gravel pit warrant further extension beyond the previously stated October 2018 target and will likely shift into 2019. Revised dates will be confirmed once the Susan Lake Closure Plan is approved;
- Awarded $1.6 million order for aggregates from a major oil sands entity with a significant portion of sales to occur between May 2018 and October 2018;
- Operating loss decreased by 14% for the three months ended March 31, 2018 to $1,089,535 versus $1,268,200 in the comparable three-month period ending March 31, 2017;
- General and Administrative expense decreased 1% for the three months ended March 31, 2018 to $600,957 versus $605,715 in the comparable three-month period ending March 31, 2017;
- Working capital of $4,230,820 million; current lease obligation of $373,301; non-current lease obligation $7,355;
- Debt to equity ratios of 0.20; total liabilities of $3,050,253; total shareholders’ equity of $14,972,299;
- Announced entry into a Letter of Intent with a property owner in the town of Mayerthorpe, Alberta for the Firebag Frac Sand Project Storage and Distribution Hub.
Financial Highlights
| ($ thousands of CDN, except per share amounts and tonnes sold) | Three Months Q1 2018 | Three Months Q1 2017 | ||
| Aggregate management fees - net | $ 107 | $ 337 | ||
| Aggregate sales revenue | $ 7 | $ 140 | ||
| Revenue | $ 114 | $ 476 | ||
| Gross profit | $ (444 ) | $ (268 ) | ||
| Total loss and comprehensive loss | $ (740 ) | $ (855 ) | ||
| Total aggregate tonnes sold (MT) | 95,489 | 250,763 | ||
| Loss per share, basic and fully diluted ($ per share) | $ (0.022 ) | $ (0.026 ) | ||
2018 Operational Outlook
Over the next 12 months, the Corporation is actively addressing and working on various strategic and operational initiatives relating to the following:
- Resolution of the Syncrude lawsuit;
- Conclude the Susan Lake Management Renewal Contract and execute the closure program of the Susan Lake Gravel Pit (still pending approval by Alberta Environment & Parks);
- Preserve the Corporation’s cash position, and dispose of non-core or low-priority assets;
- Sell existing stockpiled inventories of sand and gravel;
- Negotiate royalty agreements to monetize Pelican Hill Pit;
- Execute profitability the royalty agreement signed at the Emerson Pit;
- Establish Supplier-of-Choice relationships for 3rd party crushing services for Athabasca’s corporate pits;
- Advance the Firebag Frac Sand project venture – conclude partnerships for logistics, conclude equipment and site selection for the wash/dry plant, partner with an engineering services provider for design package and secure pre-orders for the first year’s production capacity;
- Expand the role and functionality of strategic inventory staging and distribution hubs (e.g. Conklin, Poplar Creek, and potentially House River area) to augment corporate pits limited by winter access roads;
- Selectively pursue conventional aggregate companies for potential acquisition; and
- Further develop the Aggregates Marketing arm to broker sales of 3rd party inventories to a larger market and expanded customer base in Western Canada;
About Athabasca Minerals
The Corporation is a resource company involved in the management, exploration and development of aggregate projects. These activities include contracts works, aggregate pit management, aggregate production and sales from corporate-owned pits, new aggregate development and acquisitions of sand and gravel operations. The Corporation also has industrial mineral land holdings for the purpose of locating and developing sources of industrial minerals and aggregates essential to high growth economic development.
For further Information on Athabasca, please contact:
Dean Stuart T: 403-617-7609 E: dean@boardmarker.net
Neither the 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.
