Almonty Industries Inc. (TSXV:AII) filed its unaudited consolidated interim financial statements and management discussion & analysis (MD&A) for the three and nine month periods ended June 30, 2013. The Company reported revenue of $3,574, gross profit of $1,395 representing a gross profit margin of 39.0% for the three month period ended June 30, 2013 and also mined 113,160 tonnes of ore at a weighted average grade of 0.37% WO3.
As quoted in the press release:
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.
Almonty Industries Inc. CEO, Lewis Black, said:
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.