Welcome!

News Feed Item

RB Energy Reports Q2 2014 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/14/14 -- 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
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
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...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...