|By PR Newswire||
|February 24, 2014 08:02 AM EST||
Shares Outstanding: 152,029,492
Fully Diluted: 170,325,330
TORONTO, Feb. 24, 2014 /CNW/ - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX: MBC) (OTCQX: MBCFF) provides guidance on expected production and sales at its Itafόs Arraias Single Super Phosphate ("SSP") operations ("Itafόs Operations") for the years 2014 to 2016.
The Company anticipates the following production and sales at the Itafόs Operations:
|Sulphuric Acid Available for Sale|
The Company has started to witness strength in both demand and price in the local markets for SSP since the beginning of 2014 which is consistent with developments in markets outside Brazil. Volumes are expected to increase over the next three years as the Company continues to increase market share. With recent modifications and improvements late last year and early this year, all plants have been able to perform at or close to their design capacity.
Global phosphate fertilizer prices have started to rise after a three year decline. DAP prices (fob Morocco) have increased by approximately 20% since bottoming in November 2013. Triple Super Phosphate ("TSP") prices have also seen a strong increase (approximately 32%) since hitting five year lows in late 2013. The impact of the rising price environment is starting to impact SSP prices in Brazil as 2013 inventories are depleting. The Company believes that SSP prices should fully benefit from the rising global prices as the sales season starts to gain momentum.
Average selling prices for SSP are expected to be consistent with last year's average selling price and are expected to rise driven primarily by an expected general recovery for international phosphate prices. We anticipate that the cost of production for SSP will be consistent with previously disclosed guidance and is expected to fall over the next couple of years as the plant reaches nominal capacity.
Since the beginning of January through mid-February the Company has received firm commitments for approximately 25% of its expected sales for 2014. This level of sales would be in excess of previously budgeted expectations. The Company has received advanced payments on a portion of these sales. The Company is pleased with this progress made to date as it has demonstrated acceptance of the product quality by the marketplace. The Company continues to produce and build inventories for future deliveries.
The Company has signed a strategic sales agreement with a regional distributor for an intention to purchase 70,000 tonnes of which the Company has received firm orders for 30,000 tonnes to date. The agreement contemplates deliveries starting by the end of February 2014. The Company continues to work closely with other customers in order to finalize similar agreements.
The Company remains successful in managing its working capital position through working capital facilities, advanced payments on sales and through the monetization of receivables. The Company is currently in negotiations regarding a working capital facility. In addition, the Company is also in discussions regarding the re-profiling of its overall debt structure.
Mr. Melcher, President and CEO stated "We are pleased by the acceptance of our product by customers given that the selling season is just underway. The market tone seems much more positive than experienced in the last half of 2013 and this is consistent with the developments that we are seeing in the global markets. I believe the Company is well positioned to take advantage of the fastest growing agricultural regions in Brazil. I am particularly excited about the potential for unlocking value at both the Itafόs operations as well as the high grade Santana Phosphate Project."
Addition to Management Team
As part of an ongoing review of management needs, the Company has appointed Nelson Canato Jr. to the position of Vice President, Operations and will report to the CEO. Mr. Canato will be responsible for the Company's operations with an initial focus of accelerating the ramp up of Itafόs. Mr. Canato has been involved in fertilizer operations for over 25 years in increasing roles of responsibility in maintenance and operations and was most recently Head of Operations in Anglo American Phosphate Brazil Ltda. Mr. Canato graduated with a degree in Mechanical Engineering, Universidade Estadual Paulista UNESP, São Paulo and has an Executive MBA from IBMEC, São Paulo. Mr. Canato will be joining the Company in March upon concluding his current responsibilities.
The Company continues to advance its Santana Phosphate Project. The Company is starting detailed engineering for the Santana Phosphate Project and continues to advance its financing discussions with various parties.
As part of the financing alternatives, the Company is currently pursuing a process in order to find a strategic partner for a minority interest in the Santana Project as an alternative to financing its portion of the project. The Company continues to advance the process for the Santana Phosphate Project with interested parties.
MBAC is focused on becoming a significant integrated producer of phosphate fertilizers and related products in the Brazilian and Latin American markets. MBAC has an experienced team with significant experience in the business of fertilizer operations, management, marketing and finance within Brazil. MBAC owns and operates the Itafós Operations which consists of an integrated fertilizer producing facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP plant and a granulation plant and related infrastructure located in central Brazil. The Itafós Operations are estimated to have production capacity of approximately 500,000 tonnes of SSP per annum. MBAC's exploration portfolio includes a number of additional exciting phosphate projects, which are also located in Brazil. The Santana Phosphate Project is a high grade phosphate deposit located in close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Pará State. The Company continues to search for additional fertilizer opportunities in the Brazilian and other Latin-American markets, where strong agricultural fundamentals and unique opportunities are expected to provide attractive growth opportunities in the near future. Further information on MBAC can be found on the Company's website at www.mbacfert.com and on SEDAR at www.sedar.com.
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements related to activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, expectations related to production and sales at the Itafós Operations, an increase in SSP volumes over the next three years as the Company continues to increase its market share, the positive impact of rising global prices on SSP prices as the sales season starts to gain momentum, the average SSP selling price remaining consistent with last year's average and then rising due to general recovery for international phosphate prices, sulphuric acid prices rising over the next two years as demand in the region continues to increase, cost of production for SSP will remain consistent with the Company's previously disclosed guidance and will fall over the next couple of years as the plant reaches nominal capacity, the level of SSP sales being in excess of previously budgeted expectations, the Company continuing to be successful in managing its working capital position, the securing of a new working capital facility and successfully re-profiling the Company's overall debt structure, the Company being well positioned to take advantage of the fastest growing agricultural regions in Brazil, the Company being successful in accelerating the ramp up of the Itafós Operations, obtaining satisfactory detailed engineering results for the Santana Project, successfully advancing financing for or finding a strategic partner for a minority interest in the Santana Project as an alternative.
Forward-looking statements are often identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such statements are made, and forward-looking statements involve known and unknown risks, uncertainties and other factors may cause the actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors include, among others, not meeting the various expected production and sales estimates, not increasing SSP volumes, seeing a lower than expected rise in SSP selling price, not achieving expected SSP sales volumes, not successfully managing the Company's working capital position or obtaining funding or being able to re-profile the outstanding debt, not being successful in accelerating ramping up at the Itafós Operations, not obtaining positive detailed engineering results at the Santana Project and not being successful at securing financing or an alternative strategic partner for the Santana Project, as well as those factors disclosed in the Company's current Annual Information Form and Management's Discussion and Analysis, as well as other public disclosure documents, available on SEDAR at www.sedar.com. Although MBAC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company's plans, objectives, expectations and goals and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. The company does not undertake any obligation to update forward-looking statements except in accordance with applicable securities laws.
SOURCE MBAC Fertilizer Corp.
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion...
Nov. 27, 2015 04:15 AM EST Reads: 704
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 27, 2015 04:00 AM EST Reads: 322
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 27, 2015 04:00 AM EST Reads: 211
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company Logz.io. In the past, he was co-founder of social-trading platform Currensee, which...
Nov. 27, 2015 04:00 AM EST Reads: 180
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 27, 2015 02:30 AM EST Reads: 450
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 27, 2015 02:00 AM EST Reads: 514
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 27, 2015 01:30 AM EST Reads: 461
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Nov. 27, 2015 01:00 AM EST Reads: 555
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
Nov. 27, 2015 01:00 AM EST Reads: 458
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Nov. 27, 2015 01:00 AM EST Reads: 307
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Nov. 27, 2015 01:00 AM EST Reads: 421
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Nov. 27, 2015 12:45 AM EST Reads: 393
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application del...
Nov. 27, 2015 12:00 AM EST Reads: 333
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 26, 2015 10:00 PM EST Reads: 397
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 26, 2015 04:00 PM EST Reads: 384