Welcome!

News Feed Item

RB Energy Reports Q2 2014 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/15/14 -- RB Energy Inc. (the "Company" or "RBI" or RB Energy") (TSX:RBI)(OTCQX:RBEIF) is pleased to report financial and operating results for the three and six months ended June 30, 2014. The consolidated financial statements together with Management's Discussion and Analysis will be available on the Company's web site (www.rb-e.com) and on SEDAR (www.sedar.com).

SECOND QUARTER HIGHLIGHTS

Quebec Lithium

With the onset of warmer temperatures in the second quarter, the crushing, grinding and concentrator circuits were re-started with the objective of achieving continuous battery grade(1 ) lithium carbonate production from run of mine operations. Production of limited quantities of EV grade(1) lithium carbonate were achieved, however, ramp up issues encountered with the kiln and bi-carbonate reactors delayed production of commercial volumes.

The primary optical ore sorter was delivered to site in late Q2 2014. Installation and commissioning of the ore sorter commenced in July and will be completed in August. The diversion of a road running through the open pit to will allow full access to the open pit commenced in Q2 2014. The diversion is scheduled to be completed by the end of Q3 2014. The construction of a natural gas pipeline to the mine site commenced in Q2 2014 and is on schedule for completion in Q4 2014.

As a result of the commissioning delays, it is now anticipated that commercial production levels of battery grade lithium will be achieved by the end of 2014. Production of EV grade lithium carbonate is targeted for early 2015. The ramp-up to the annual design capacity of 20,000 tonnes is now expected to be achieved in Q1 2015.

The aforementioned delays in the ramp up of production have deferred the anticipated production and sale of commercial quantities of lithium carbonate, thereby accelerating the depletion of the Company's treasury to a greater extent than anticipated. As a result, the Company is working to secure additional sources of funding to complete commissioning, achieve commercial production and realize positive operating cash flow at Quebec Lithium.

Aguas Blancas

For the three months ended June 30, 2014, Aguas Blancas produced 314 tonnes of iodine at a cash cost of US $22 per kg and sold 518 tonnes at an average price of US $36 per kg during Q2 2014. High sales volumes in Q2 2014 offset the low volumes of sales in Q1 2014, which were due principally to disrupted shipments from Chile as a result of earthquakes and a port strike.

(1) Quebec Lithium specifications (lithium carbonate content)


--------------------------------------------------
Technical grade                    99.0%          
--------------------------------------------------
Battery grade                      99.7%          
--------------------------------------------------
Electric Vehicle (EV) grade        99.9%          
--------------------------------------------------

RESULTS FROM OPERATIONS

Quebec Lithium is in the commissioning stage and had not yet generated sales and revenues at the end of Q2 2014. Revenues only included the Aguas Blancas operations of since February 2014 (2013: none) and reflected sales of iodine inventory acquired at its fair value on January 31, 2014 and iodine produced since the Arrangement.

During the three and six months ended June 30, 2014, the Company earned a net profit of $1.3 million ($0.01 earnings per share) and incurred a net loss of $6.2 million ($0.03 loss per share), respectively, compared with net losses of $1.3 million ($0.01 loss per share) and $3.9 million ($0.03 loss per share), respectively, for the same periods in 2013. Included in the Q2 2014 profit is an unrealized foreign exchange gain of $1.5 million due principally to the positive impact of the strengthening of the Canadian dollar against the US dollar on the carrying values of the US dollar denominated convertible debentures, finance lease liabilities, and cash advances from a customer since the end of Q1 2014. More than half of the loss for the six months ended June 30, 2014 ($3.3 million) is due to the one-time transaction costs associated with the Arrangement.

RB Energy incurred general and administrative expenses of $1.8 million (2013: $2.0 million) and $3.6 million (2013: $4.3 million) for the three and six months ended June 30, 2014, respectively, which include costs to maintain offices and staff in Toronto and Montreal to the end of April.


----------------------------------------------------------------------------
                               Three months ended       Six months ended    
(Canadian dollars)             June-14     Jun-13     June-14      Jun-13   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenues ($000's)                                                     
 (Note 1)                         20,145          -      25,189           - 
----------------------------------------------------------------------------
Net income (loss) ($000's)         1,307     (1,330)     (6,167)     (3,885)
----------------------------------------------------------------------------
Income (loss) per share,                                                    
 basic and diluted ($)              0.01      (0.01)      (0.03)      (0.03)
----------------------------------------------------------------------------
Total assets ($000's) (Note                                                 
 2)                              484,265    344,076                         
----------------------------------------------------                        
Total liabilities ($000's)                                                  
 (Note 2)                        205,215    163,337                         
----------------------------------------------------                        
                                                                            
----------------------------------------------------------------------------
Iodine produced (t) (Note 1)         314          -         525           - 
----------------------------------------------------------------------------
Iodine sold (t) (Note 1)             518          -         644           - 
----------------------------------------------------------------------------
Iodine avg. price ($/kg)                                                    
 (Note 1)                             39          -          39           - 
----------------------------------------------------------------------------
Iodine cash operating cost                                                  
 ($/kg) (Note 1, 3)                   24          -          26           - 
----------------------------------------------------------------------------

Note 1: revenues and iodine data are from February 1 to June 30, 2014, the period post acquisition of Sirocco.

Note 2: comparative data provided as at December 31, 2013.

Note 3: this is a non-GAAP measure. It was calculated by dividing cost of sales, adjusted for the change in inventory and the related depreciation, by quantities of iodine produced in the period.

Note 4: for complete details, refer to the June 30, 2014 interim consolidated financial statements and MD&A.

The increase in total assets and liabilities from December 31, 2013 is due to the acquisition of Sirocco and the consolidation of its net assets as well as the ongoing construction and commissioning of the lithium processing plant in Quebec. Capitalized items include borrowing and operating costs for Quebec Lithium during the period.

OUTLOOK

Quebec Lithium

The operating focus is to ramp up commercial production volumes, achieve commercial production before the end of 2014 and name plate production by the end of Q1 2015. Shipments of lithium carbonate to the Company's main off take partner commenced in August. Modifications to the processing plant to produce EV grade lithium carbonate are scheduled for Q4 2014.

The timetable to Q1 2015 includes four main operating objectives:


1.  achieve continuous shipments of lithium carbonate in Q3 2014; 
2.  complete the commissioning of the primary optical ore sorter (to reduce
    ore dilution) thereby increasing concentrate grade in Q3; 
3.  reach commercial production levels of lithium carbonate by the end of
    2014 and name plate production by the end of Q1 2015; and 
4.  produce EV grade lithium carbonate before the end of Q1 2014 as a result
    of modifications to the processing plant. 

Aguas Blancas

Production at Aguas Blancas was reduced in late 2013 by placing the Agitated Leach Plant ("ALP") on care and maintenance in response to further softening prices in the market. As a result, operations in 2014 are limited to heap leaching. In 2014, production of iodine is estimated at approximately 1,000 tonnes at a cash cost of approximately US $26/kg. Aguas Blancas expects to supplement the sales of its 2014 production by reducing the level of finished product inventory on hand. Subsequent to Q2 2014, the Company has committed to the delivery of approximately 190 tonnes of iodine over the next twelve months to generate additional cash flows in support of commissioning at Quebec Lithium.

About RB Energy Inc.

RBI is a Canadian company formed pursuant to the arrangement involving Sirocco Mining Inc. and Canada Lithium Corp. It currently owns Aguas Blancas, an iodine producing mine in northern Chile, and Quebec Lithium near Val d'Or, the geographical heart of the Quebec mining industry. The Aguas Blancas mine is currently in production. The Quebec Lithium has completed construction and is in the commissioning phase. For more information regarding RBI, please refer to its public filings available at www.sedar.com.

The technical contents of this release have been reviewed by Mr. Kevin Ross, Eur. Ing., a Qualified Person pursuant to NI-43-101. Mr. Ross is Chief Operating Officer of the Company and a Member of The Institute of Materials, Minerals and Mining.

Forward-Looking Statements

Certain information contained in this news release, including any information relating to the state of the lithium and iodine industries; statements regarding our ability and the timing to achieve and sustain commercial production and name-plate production levels of iodine; ; our ability to secure additional financing; our ability to secure commercial orders from our customers; and our ability to become a material player in the lithium market are "forward-looking statements". These forward-looking statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities of RBI. These forward-looking statements also reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. The estimates and assumptions of RBI underlying the forward-looking statements in this news release may prove to be incorrect. Assumptions upon which such forward looking information include, among other things, successful and timely commissioning, ramp-up and production at the Quebec Lithium Project; the lack of any further significant capital expenditures during the commissioning stage or to bring the hydrometallurgical process plant into production; the continuing support and cooperation of RBI's off-take partners; as well as financial predictions premised on such assumptions. Although the Company believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. RBI expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

On behalf of the Board,

Richard P. Clark, President and CEO

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
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 ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
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, ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of 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, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of 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, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.