|By Marketwired .||
|March 20, 2014 06:32 PM EDT||
SASKATOON, SK -- (Marketwired) -- 03/20/14 -- Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE: GWG) (OTCQX: GWMGF), a leader in the manufacture and supply of rare earth element-based metals and metal alloys and holder of a low cost, high-grade critical rare earth asset (the "Steenkampskraal Project" or "SKK"), today released its fourth quarter and full year financial results through December 31, 2013, and provided an update on the Company's activities.
Highlights and Results:
- Strong top line performance: fourth quarter revenue increased more than 86% to $5.2 million over the prior-year period on strong alloy sales as a result of increased manufacturing capacity and enhanced capabilities. For the full-year 2013 period, revenue increased 10.8% to $17.4 million. Company revenue was primarily attributable to its production subsidiary Less Common Metals Limited ("LCM").
- SKK Feasibility Study progressing well: Company plans to take a few extra weeks to perform value engineering to optimize capital expenditure requirements for the SKK project. Expect to report results of the study by May 1, 2014.
- Advanced corporate-wide objectives and strategy: monthly cash outlays were significantly reduced with aggressive expense management and a continued focus on core assets, which was further supported with the executed joint venture agreement on the Hoidas Lake project and the planned closing of Great Western Technologies Inc. ("GWTI").
Marc LeVier, Company President and CEO, commented, "2013 and the start of this year can be described as a period of measurable change and progress. We have reduced costs and focused our efforts and resources on the work that will support our mine to metals strategy. Our efforts have put the work process in proper sequence to advance the project and provide for long term success."
Mr. LeVier added, "We are starting to see the benefits of our capacity and capability enhancements at LCM with increased customer orders. At SKK, we laid out an aggressive plan to get us on the path toward production and have been successful in advancing our objectives. We completed a new NI 43-101 compliant technical report and upgraded mineral resource estimate, optimized the metallurgical process, completed a successful mini-pilot plant test, and the SKK Feasibility Study is in the final stages of review efforts. We believe we have the right-sized operation and right-sized business model to succeed."
Manufacturing services revenue was $5.2 million in the fourth quarter of 2013, an 86.2%, or $2.4 million, increase from the same period in the prior year as higher volumes more than offset declining alloy prices. A slow-down in sales near the end of 2012, as customers prepared for price decreases, also contributed to the year-over-year change. In the recent quarter, the Company sold 85 metric tonnes of alloys compared with 37 metric tonnes of alloys for the same period in 2012. The increase was primarily due to the Company being able to sell bulk quantities of strip-cast alloys following full qualification with key customers in 2013. Fourth quarter gross margin improved to $0.8 million, or 15.9% of sales, from $0.3 million, or 10.8% of sales, in the fourth quarter of 2012. The increase was due to the leverage on higher volume and specialty alloy sales during the period which have historically been at higher margins.
For the full-year 2013 period, the Company had revenue of $17.4 million, an increase of 10.8% over the 2012 period, which reflects 284 metric tonnes of alloys sold compared with 198 metric tonnes in 2012. The Company's gross margin remained relatively constant at $4.4 million in 2013 compared with $4.3 million in 2012, though as a percentage of revenue, gross margin declined to 25.6% from 27.1% in the prior-year period. The margin contraction was due to lower alloy prices.
The manufacturing services segment generated a loss of $2.9 million in 2013 compared with a loss of $1.9 million in 2012. The change was mostly attributable to an increase in depreciation and amortization of $0.7 million as a result of the new LCM facility and furnaces that were put into production, and an impairment of property, plant and equipment of $0.2 million related to redundant assets at LCM.
Alloy volumes are anticipated to increase over the prior years now that the new furnaces at LCM are fully commissioned and customers expand their orders, although growth will continue to be limited by the Company's ability to obtain the necessary rare earth materials at competitive pricing. Once the SKK project has commenced production, the Company expects this limitation will be removed.
The Company will be discontinuing the operations of its GWTI business unit located in Troy, Michigan, and will attempt to liquidate the assets in the coming months.
Mr. LeVier added, "The Board and management team have been conducting an extensive review to identify inefficiencies in our operations in order to lower our overhead and capital outlays. GWTI has struggled with losses and, given our strong position with LCM, the Board felt this action was prudent and an important step that will eliminate redundancy and better streamline the organization for improved efficiencies."
The GWMG Board of Directors approved the closing and redundant asset liquidation on March 20, 2014.
The Company expended $7.6 million in 2013 on various technical studies, mine site exploration and evaluation investigations, the October 2013 Resource Estimate, finalization of the PEA, the final phase of infill drilling and underground sample collection for higher density resource data, development of a robust structural geology model, metallurgical test works, and commencement of the SKK Feasibility Study. Comparatively, in 2012, GWMG expended $10.8 million predominantly on exploratory drilling and various technical studies.
During the year, GWMG also initiated exploration activities on an approximately 55,000 hectare prospecting right surrounding the SKK Project. Work included geologic mapping, ten channel sample lines crossing monazite veins in historic trenches for a total of 126 rock samples and 49 quality control samples, ground radiometric surveys and a combined airborne high-resolution magnetic and radiometric geophysical survey of the area. Geophysical and geological interpretation of the radiometric survey data along with preliminary evaluation of assay results have identified several anomalies that may be related to REE mineralization.
The October 2013 Resource Estimate, which is one of the foundations for the SKK Feasibility Study, increased the Measured and Indicated mineral resources to 86,900 tonnes total rare earth oxides including yttrium oxide (16,600 tonnes Measured and 70,300 tonnes Indicated) and upgraded a significant amount of the December 2012 Resource Estimate from the Indicated and Inferred categories to the Measured and Indicated categories.
The Company is currently evaluating a variety of funding options as well as alternatives to reduce capital outlays. This includes evaluating toll separation alternatives to defer certain upfront capital costs and shorten timelines. Until such time as the funding is secured, the Company will manage its current cash position to best support key lines of progress at the SKK project.
The Company's cash and cash equivalent position at December 31, 2013 was $23.6 million compared with $28.3 million at September 30, 2013. The Company continues to take a prudent approach to expense management and has significantly reduced its monthly cash outlays following various operational efficiency initiatives. During the first half of 2013, GWMG averaged cash outlays of approximately $3.0 million per month. This significantly improved to $1.8 million during the second half of 2013.
The Company believes that its current capital level will allow it to perform certain compliance work, undertake necessary engineering and technical studies to complete the SKK feasibility study and make its scheduled interest payments for 2014.
Victor-Mark Fitzmaurice, Pr. Eng. M. Engineering (Mining), Managing Director of Rare Earth Extraction Co. Limited and Steenkampskraal Monazite Mine (Pty) Ltd. and Brent C. Jellicoe, B.Sc. (Hon.), P.Geo., Chief Geologist for Steenkampskraal Monazite Mine (Pty) Ltd., are the Qualified Persons (as defined in NI 43-101) responsible for supervising the preparation of the technical content of this news release.
Teleconference and Webcast
The Company will host a conference call and webcast to review its results, key market initiatives and business strategy on Friday, March 21, 2014 at 11:00 a.m. ET. A question-and-answer session will follow.
The conference call can be accessed by calling (201) 689-8471. The live listen-only audio webcast can be monitored on the Company's website at www.gwmg.ca, where it will be archived afterwards, along with a transcript once available.
A telephonic replay will be available from 2:00 p.m. ET the day of the teleconference until Friday, March 28, 2014. To listen to the archived call, dial (858) 384-5517 and enter replay pin number 13577672.
Great Western Minerals Group Ltd. is a leader in the manufacture and supply of rare earth element-based metals and metal alloys. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly-owned subsidiary, Less Common Metals Limited in Ellesmere Port, U.K., these alloys contain transition metals, including nickel, cobalt, iron and other rare earth elements. As part of the Company's vertical integration strategy, GWMG also holds 100% equity ownership in Rare Earth Extraction Co. Limited, which controls the Steenkampskraal monazite mine in South Africa. The Company also holds interests in three rare earth exploration properties in North America that are not active.
The Company routinely posts news and other information on its website at www.gwmg.ca.
Email inquiries can also be made to [email protected].
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.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of GWMG as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to the assumptions and estimates in the October 2013 resource estimate and the preliminary economic assessment of the Steenkampskraal project proving to be accurate over time; the construction, commissioning and operation of the proposed monazite processing facility and separation facility within estimated parameters; mine refurbishment activities; reliance on third parties to meet projected timelines and commencement of production at Steenkampskraal; risks related to the receipt of all required approvals including those relating to the commencement of production at the Steenkampskraal mine, delays in obtaining permits, licenses and operating authorities in Canada, South Africa and China, environmental matters, water and land use risks; risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, including those estimated in the preliminary economic assessment of the Steenkampskraal project; risks associated with the uncertainty of resource estimates; health and safety risks; uncertainty of estimates and projections of production, costs and expenses; risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives; the adequacy of the Company's financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all; political risks inherent in South Africa and China; risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in Canada and South Africa, radioactivity and related issues, dependence on one mineral project; loss of, and the inability to attract, key personnel; the factors discussed in the Company's public disclosure record; and other factors that could cause actions, events or results not to be as anticipated. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. Except as required by law, GWMG does not assume any obligation to update forward looking statements as set out in this news release. The forward-looking statements of GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's Annual Information Form available at www.sedar.com.
GREAT WESTERN MINERALS GROUP LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($ in CAD) As at December 31 December 31 2013 2012 Recast Assets Cash and cash equivalents $ 23,573,586 $ 52,095,448 Accounts receivable 3,855,444 2,365,880 Inventories 4,121,182 4,199,561 Escrow account - 7,163,280 Deposits and prepaid expenses 1,991,582 837,315 -------------- -------------- Current assets 33,541,794 66,661,484 -------------- -------------- Property, plant and equipment 20,677,727 16,388,314 Exploration and evaluation assets 15,233,227 17,624,225 Intangible assets 668,431 749,814 Goodwill 2,323,426 2,132,431 -------------- -------------- Non-current assets 38,902,811 36,894,784 -------------- -------------- Total assets $ 72,444,605 $ 103,556,268 ============== ============== Liabilities Accounts payable and accrued liabilities 7,398,668 11,220,369 Current portion of provisions 2,188,963 1,065,175 -------------- -------------- Current liabilities 9,587,631 12,285,544 -------------- -------------- Provisions 1,971,899 3,287,136 Convertible bonds - debt 65,824,047 55,810,316 Convertible bonds - embedded conversion option - 7,047,954 -------------- -------------- Non-current liabilities 67,795,946 66,145,406 -------------- -------------- Shareholders' equity / (deficit) Share capital 111,747,305 111,747,305 Warrants 11,702,153 11,817,308 Share based payments reserve 10,908,496 10,274,967 Accumulated other comprehensive income (loss) (6,192,722) (5,020,099) Deficit (133,104,204) (103,694,163) -------------- -------------- Total shareholders' equity / (deficit) (4,938,972) 25,125,318 -------------- -------------- Total liabilities and shareholders' equity $ 72,444,605 $ 103,556,268 ============== ============== GREAT WESTERN MINERALS GROUP LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ($ in CAD) For the three months ended For the years ended December 31, December 31, 2013 2012 2013 2012 Recast Recast Sales $ 5,193,526 $ 2,789,613 $ 17,385,056 $ 15,687,298 Cost of sales 4,366,563 2,487,218 12,941,697 11,435,785 ------------ ------------ ------------ ------------ Gross margin 826,963 302,395 4,443,359 4,251,513 ------------ ------------ ------------ ------------ Operating Expenses General and administration 150,327 1,258,745 3,776,047 4,109,182 Wages and benefits 1,694,610 4,186,612 7,428,157 9,071,977 Stock based compensation (107,695) (426,806) 633,529 2,109,921 Professional fees 202,898 689,539 1,885,563 2,640,732 Investor relations 51,922 189,584 227,049 369,706 Occupancy 1,020,873 1,427,530 2,642,684 2,876,508 Depreciation and amortization 640,251 142,855 1,750,362 875,137 Exploration and evaluation 1,541,859 3,173,050 7,720,713 12,364,859 Property research - 124,498 - 154,647 Impairment of property, plant and equipment 83,203 1,204,702 236,690 6,469,890 Exchange loss 1,481,306 269,949 1,982,704 21,458 ------------ ------------ ------------ ------------ 6,759,554 12,240,258 28,283,498 41,064,017 Other Interest expense and finance costs (3,671,249) (3,076,497) (12,866,488) (10,359,682) Interest income (34,223) 116,635 104,040 262,061 Gain on conversion option 130,114 15,561,981 7,047,954 26,528,477 Other income (expense) 11,638 (7,913) 33,636 147,036 ------------ ------------ ------------ ------------ (Loss) Income before income taxes (9,496,311) 656,343 (29,520,997) (20,234,612) Income tax recovery (expense) (4,199) 802,976 110,956 715,929 ------------ ------------ ------------ ------------ Net Income (loss) $ (9,500,510) $ 1,459,319 $(29,410,041) $(19,518,683) Other comprehensive income (loss): Items that may be reclassified to profit and loss: Translation adjustment 970,388 (478,201) (1,172,623) (2,114,079) ------------ ------------ ------------ ------------ Other comprehensive income (loss) 970,388 (478,201) (1,172,623) (2,114,079) ------------ ------------ ------------ ------------ Total comprehensive income (loss) (8,530,122) 981,118 (30,582,664) (21,632,762) ============ ============ ============ ============ Basic and fully diluted income (loss) per share $ (0.023) $ 0.003 $ (0.070) $ (0.047) ============ ============ ============ ============ Weighted average number of shares outstanding 418,738,174 418,564,261 418,738,174 416,470,712 ============ ============ ============ ============ GREAT WESTERN MINERALS GROUP LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in CAD) For the years ended December 31, 2013 2012 Recast Cash provided by (used in) Operating activities Net loss for the year $ (29,410,041) $ (19,518,683) Adjustment for: Depreciation and amortization 1,750,362 875,137 Stock based compensation 633,529 2,109,921 Finance costs 12,866,488 10,359,682 Gain on conversion options (7,047,954) (26,528,477) Impairment of property, plant & equipment 236,690 6,469,890 Loss on disposal of property, plant & equipment 2,063 5,149 Impairment of inventory 249,457 466,302 Gain on Vaaldiam Mining shares - (108,261) Income tax recovery (110,956) (715,929) Income tax received (paid) 122,273 (234,841) Other operating items (4,750,180) 5,213,380 -------------- -------------- (25,458,269) (21,606,730) -------------- -------------- Investing activities Property, plant and equipment (5,243,987) (11,316,398) Proceeds on sale of Vaaldiam Mining shares - 159,405 Proceeds on sale of property, plant and equipment 160,422 15,739 Interest received 104,040 262,061 -------------- -------------- (4,979,525) (10,879,193) -------------- -------------- Financing activities Issuance of share capital, net of issuance costs - 913,908 Interest paid (7,397,833) (3,813,551) Issuance of convertible bonds, net of issue costs - 83,405,896 Net change in amounts in escrow 7,163,280 (7,163,280) -------------- -------------- (234,553) 73,342,973 -------------- -------------- Net increase (decrease) in cash and cash equivalents during the year (30,672,347) 40,857,050 Exchange rate changes on foreign currency cash balances 2,150,485 308,190 Cash and cash equivalents, beginning of year 52,095,448 10,930,208 -------------- -------------- Cash and cash equivalents, end of year $ 23,573,586 $ 52,095,448 ============== ==============
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 24, 2016 07:15 PM EDT Reads: 916
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 24, 2016 06:30 PM EDT Reads: 708
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 24, 2016 06:00 PM EDT Reads: 4,625
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 24, 2016 05:45 PM EDT Reads: 604
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
May. 24, 2016 05:00 PM EDT Reads: 1,830
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 24, 2016 04:45 PM EDT Reads: 999
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 24, 2016 04:45 PM EDT Reads: 892
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
May. 24, 2016 04:15 PM EDT Reads: 1,810
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
May. 24, 2016 04:00 PM EDT Reads: 1,675
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
May. 24, 2016 04:00 PM EDT Reads: 2,342
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 24, 2016 03:30 PM EDT Reads: 917
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
May. 24, 2016 02:15 PM EDT Reads: 2,067
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 24, 2016 02:00 PM EDT Reads: 3,833
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
May. 24, 2016 01:45 PM EDT Reads: 1,355
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
May. 24, 2016 01:45 PM EDT Reads: 2,046