Athabasca Minerals Announces Q3 2020 Financial Results and Investor Update TSX Venture Exchange:AMI


CALGARY, Alberta, Nov. 25, 2020 (GLOBE NEWSWIRE) — Athabasca Minerals Inc. (Athabasca or the Company) (TSXV:AMI) pronounces its monetary outcomes for the third quarter ended September 30, 2020. The Companys monetary statements and administrations dialogue and evaluation (MD&A) can be found on SEDAR at www.sedar.com and on the Athabasca Minerals Inc. web site at www.athabascaminerals.com. The Company additionally pronounces the Q3 2020 Outcomes Investor Replace to be held on December 1, 2020.

Within the third quarter of 2020, Athabasca reported consolidated income of $0.four million ($0.1 million in Q3 2019) with a complete loss and complete lack of $1.1 million, in comparison with revenue of $0.Eight million in Q3 2019.

Robert Beekhuizen said: Regardless of the challenges of COVID-19, AMI and our group of firms continues to deal with our targets and making the suitable long-term choices to advance our initiatives and strategic initiatives. The non-brokered non-public placement of $1.48 million in late October highlights the dedication to our Duvernay Sand Mission, in addition to the announcement of our three way partnership companion to develop the sand facility.

BUSINESS HIGHLIGHTS

Athabasca Minerals stories the next key highlights in Q3-2020:

  • In September 2020, the Company introduced the development of a strategic Joint Enterprise (JV) initiative with a world industrial companion to pursue the Duvernay Sand Mission. The intention of the JV initiative is to co-develop and function one of many greenest sand services in North America. The JV initiative gives various distinctive synergies together with industrial land for building of the ability, in addition to entry to industrial utilities and transportation infrastructure;
  • AMI Aggregates was impacted by decrease exercise on account of COVID-19 in addition to the financial downturn. Resumption of normalized manufacturing out of Coffey Lake or AMIs different company pits is just not anticipated till early 2021 with out enchancment to commodity costs and lifting of COVID-19 restrictions;
  • Within the third quarter of 2020, AMI RockChain had elevated gross sales volumes relative to Q2-2020; nevertheless, volumes proceed to be impacted by the financial downturn from COVID-19;
  • Subsequent to the third quarter of 2020, on October 26, 2020, the Company introduced the closing of a $1.48 million non-brokered non-public placement, with the issuance of 9,866,688 frequent shares at a premium worth of $0.15. Proceeds from the non-public placement shall be used to advance Entrance-Finish Engineering & Growth (“FEED”) actions for the Duvernay Sand Mission (“Duvernay Mission”) and for normal company functions. The non-public placement was supported by JMAC Assets Ltd. as an anchor investor. With the non-public placement, insider possession of the Companys Frequent Shares elevated from 8.1% to 22.5%;
  • On October 26, 2020, the Company additionally introduced the addition of Jon McCreary, CEO of JMAC Assets Inc., to the Board of Administrators, efficient November 1, 2020; and
  • AMI continues to pursue strategic partnering and joint-venture relationships that may advance its industrial minerals development methods, diversify its income era, and improve choices for entry to lower-cost capital funding.

Fiscal Administration & Reporting

  • The Company has undertaken a number of monetary initiatives in response to the COVID-19 pandemic:
    • A $40,000 mortgage for AMI Silica and a $40,000 mortgage for AMI RockChain have been secured by the Canadian Emergency Enterprise Account (CEBA) program to assist these companies by the COVID-19 pandemic. TerraShift additionally had a $40,000 CEBA mortgage on the time of acquisition. These loans are curiosity free, require no principal funds till December 2022, and $10,000 is forgivable if repaid by December 2022. In October 2020, the Authorities of Canada introduced its intention to extend CEBA loans from $40,000 to $60,000, of which $20,000 shall be forgivable if repaid by December 2022;
    • AMI utilized for the Canadian Emergency Wage Subsidy (CEWS) program to help its companies by the COVID-19 pandemic. The CEWS program is presently in place till June 2021, and AMI has obtained and accrued subsidies totaling $267,574 as at September 30, 2020 from the CEWS program;
    • In November 2020, AMI intends to use for the Canadian Emergency Lease Subsidy (CERS) program to additional help its companies by receiving subsidies for lease and different industrial properties bills incurred from September 27, 2020 till June 2021;
    • Principal compensation of the $1,500,000 financial institution mortgage purposed for Coffey Lake Public Pit and the True North Staging Hub building was deferred an extra three months to 6 months of interest-only fee phrases, which led to July 2020;
  • In an effort to protect the Companys money place and staff through the COVID-19 pandemic and financial downturn, AMI carried out a 90/10 compensation program whereby 90% of base wage is paid in money and 10% of base wage is paid in treasury-issued shares. For this compensation program, the Company has put into place an Worker Share Buy Plan (ESP Plan) and participation within the ESP Plan is voluntary. The compensation program was enforce June 1, 2020 for workers and administration. For directors charges, the compensation program was retroactive to April 1, 2020. The ESP Plan was authorised by the shareholders on September 22, 2020 and by the TSX Enterprise Alternate on October 16, 2020.
  • AMIs money place as at September 30, 2020 was $1.2 million free money and $1.1 million restricted money. The free money stability elevated subsequent to quarter finish because of the $1.48 million non-brokered non-public placement which closed on October 26, 2020. AMIs money place as at October 31, 2020 was $2.four million free money and $1.1 million restricted money.

COVID-19 UPDATE

Athabasca and its subsidiaries will proceed to be operational by the brand new enhanced public well being directives issued by the Province of Alberta, as per the advice of well being officers, most staff shall be working from dwelling. AMI continues to develop each security and expertise options to raised enable our prospects and suppliers a secure and environment friendly methodology to proceed assembly their combination wants. Nevertheless, all operations might be affected by any new COVID-19 associated points or new lockdown directives, as will probably be tougher for our prospects to maneuver ahead with initiatives throughout a lockdown.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

($ hundreds of CDN,Three Months Ended Sept 309 Months Ended Sept 30
except in any other case famous)2020201920202019
Mixture gross sales income$326$78$874$1,059
Administration providers income1000557434
Income426781,4311,493
Working prices(601)(430)(1,392)(2,107)
Gross (loss) revenue(322)(445)(312)(853)
Complete (loss) revenue and complete (loss) revenue(1,106)749(2,596)(1,619)
Money place1,1763,9861,1763,986
Web money (utilized in) working actions(512)(760)(1,471)(1,868)
Loss (revenue) per share ($ per share)
Primary(.023).017(.055)(.038)
Absolutely diluted(.023).016(.055)(.038)
  • The quarterly improve in income was a results of development in combination gross sales income from AMI RockChain. Within the third quarter of 2020, administration providers income was additionally generated by TerraShift, whereas the comparable quarter had nil income with the closure of Susan Lake operations.
  • For the 9 months ended September 30, 2020, aggregates gross sales income was decrease on account of a decline in AMIs company pit income, offset by elevated networked 3rd occasion gross sales income from AMI RockChain. Administration providers income within the 9 months ended September 20, 2020 elevated versus the comparable interval in 2019 on account of gross sales from Coffey Lake in 2020 and the addition of TerraShifts income stream.
  • Gross revenue (loss) for the three and 9 months ended September 30, 2020 was a lack of $0.Three million and lack of $0.Three million, respectively, in comparison with a lack of $0.four million and $0.9 million for a similar intervals in 2019. Included within the lack of $0.Three million for the three and 9 months ended September 30, 2020 was a list write-down of $0.Three million. The Company took the mandatory actions to regulate prices constructions the place attainable, and consequently, gross losses have been considerably lowered within the three and 9 month 2020 intervals. It’s anticipated that these changes to prices will profit the Company on an ongoing foundation.
  • The whole loss (revenue) and complete loss (revenue) for the three and 9 months ended September 30, 2020 was a lack of $1.1 million and $2.6 million, respectively, in comparison with revenue of $0.Eight million and a lack of $1.6 million for the corresponding intervals in 2019.
  • Web working capital of $1.Zero million as at September 30, 2020 (December 31, 2019: $2.Eight million). On October 26, 2020, the Company accomplished a $1.48 million non-brokered non-public placement enhancing AMIs internet working capital. In administrations opinion the improved internet working capital from the non-public placement positions AMI to fund ongoing operations. The Company used much less money in operations within the three and 9 months ended September 30, 2020 in comparison with the equal intervals in 2019. The write-down of stock additionally decreased working capital as at September 30, 2020 in comparison with December 31, 2019.

GRANT OF STOCK OPTIONS AND DEFERRED SHARE UNITS

  • AMI pronounces that its Board of Administrators have authorised the grant of 664,800 inventory choices (“Choices”) and 36,000 Deferred Share Models (“DSUs”) to officers, administrators, and choose administration of the Company pursuant to the Company’s Choices and DSU plans in addition to the Company’s Inventory Choice Replenishment Program. The Choices have an train worth of $0.14 per share and have a time period of 5 years.

INVESTOR UPDATE WEBCAST
Athabasca will host a webcast for buyers, analysts and stakeholders to supply an replace on the present working surroundings. Registration is required, so please pre-register to obtain your password.

A webcast hyperlink and associated presentation materials shall be accessible on the Buyers Data web page of the Companys web site at https://www.athabascaminerals.com/. A replay of the occasion shall be supplied on the similar location following the occasion.

ABOUT ATHABASCA MINERALS INC.
Athabasca is an built-in group of firms targeted on the aggregates, industrial minerals and useful resource sectors, together with exploration and improvement; aggregates advertising and midstream supply-logistics options. Enterprise actions embrace combination manufacturing, gross sales and royalties from corporate-owned pits, administration providers of third-party pits, acquisitions of sand and gravel operations, built-in provide/supply options of commercial minerals, and new enterprise improvement. The Company is strategically targeted on rising its three core enterprise items: the AMI Aggregates division, the AMI RockChain division, and the AMI Silica division. Administration is frequently pursuing alternatives for sustained development and diversification in supplying combination merchandise and industrial minerals.

Athabascas enterprise is comprised of the next three reportable segments:

  • AMI Aggregates division produces and sells combination out of its company pits and manages the Coffey Lake Public Pit on behalf of the Province of Alberta for which combination administration providers income are earned.
  • AMI Silica division is positioning to change into a number one provider of premium home silica sand with regional deposits in Alberta and NE British Columbia. This reporting phase encompasses all silica property together with Firebag, the Duvernay Mission and the Montney In-Basin Mission.
  • AMI RockChain division is a midstream technology-based enterprise utilizing its proprietary RockChain digital platform, related algorithm and high quality assurance & management providers to supply cost-effective built-in provide / supply options of commercial minerals to business, and the development sector.
    • TerraShift Engineering Ltd. is a newly acquired entity of RockChain. It gives technology-based purposes that assist useful resource exploration and improvement, environmental and regulatory planning, useful resource administration, compliance reporting, and reclamation for a rising buyer base throughout Western Canada and Ontario.

For additional data, please contact:
Tanya Finney, Director, Investor and Stakeholder Relations
Tel: 587-391-0548 / E-mail: tanya.finney@athabascaminerals.com

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this launch.

FORWARD LOOKING STATEMENTS
This doc incorporates ahead trying statements and forward-looking data (collectively referred to herein as forward-looking statements) regarding anticipated developments and occasions that will happen sooner or later. Ahead trying statements embrace, however should not restricted to: statements with respect to the estimation of combination and mineral reserves and assets, the conclusion of combination and mineral reserve estimates, disposition of property, the timing and quantity of estimated future manufacturing, prices of manufacturing, capital expenditures, prices and timing of the event of latest deposits, success of exploration actions, allowing time strains, necessities for added capital, potential three way partnership relationships, potential acquisitions, geographic diversification, authorities regulation of mining operations, environmental dangers, unanticipated reclamation bills, title disputes or claims and limitations on insurance coverage protection.

Ahead-looking statements are statements that aren’t historic details and are typically, however not all the time, recognized by the phrases expects, plans, anticipates, believes, intends, estimates, continues, future, forecasts, potential, finances and comparable expressions, or are occasions or situations that will, would, might, probably, might, ought to, can, sometimes, historically or are likely to happen or be achieved. This MD&A incorporates forward-looking statements, pertaining to, amongst different issues, the next: the influence of Athabascas monetary assets or liquidity on its future working, investing and financing actions; Athabascas capital budgets, the appropriateness of the quantity and expectations of how will probably be funded; the Companys capital administration technique and monetary place; Athabascas outlook, industrial and building ranges, and deal with value administration; the enlargement of consumers and community of AMI RockChain; the worldwide industrial companion or three way partnership for the Duvernay Mission; a possible companion for the Montney Mission; continued improvement of the Duvernay Mission; the potential completion of a Nationwide Instrument 43-101 compliant technical report for the Montney Mission; the reactivation of sure inactive pits; potential acquisition or divestiture actions; the demand for aggregates from the Richardson Quarry Mission; and the influence of and the Companys response to the COVID-19 well being pandemic.

Though the Company believes that the fabric elements, expectations and assumptions expressed in such forward-looking statements are cheap based mostly on data accessible to it on the date such statements are made, undue reliance shouldn’t be positioned on the forward-looking statements as a result of the Company can provide no assurances that such statements and data will show to be right and such statements should not ensures of future efficiency. Since forward-looking statements deal with future occasions and situations, by their very nature they contain inherent dangers and uncertainties. Precise efficiency and outcomes might differ materially from these presently anticipated on account of various elements and dangers. These embrace, however should not restricted to: identified and unknown dangers, together with these set forth within the Companys annual data type dated September 3, 2020 (a duplicate of which will be discovered below Athabascas web site below Annual Paperwork or on the Companys profile on SEDAR at www.sedar.com); exploration and improvement prices and delays; climate, well being, security, market and environmental dangers; integration of acquisitions, competitors, and uncertainties ensuing from potential delays or modifications in plans with respect to acquisitions, improvement initiatives or capital expenditures and modifications in laws together with, however not restricted to incentive applications and environmental laws; inventory market volatility and the shortcoming to entry enough capital from exterior and inner sources; normal financial, market or enterprise situations; the COVID-19 well being pandemic; international financial occasions; modifications to Athabascas monetary place and money move; the provision of certified personnel, administration or different key inputs; potential business developments; and different unexpected situations which might influence using providers equipped by the Company. Accordingly, readers mustn’t place undue significance or reliance on the forward-looking statements. Readers are cautioned that the listing of things set out herein is just not exhaustive and may seek advice from Threat Elements set out within the Companys annual data type dated September 3, 2020.

Statements, together with forward-looking statements, contained on this MD&A are made as of the date they’re given and the Company disclaims any intention or obligation to publicly replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, except so required by relevant securities legal guidelines. The forward-looking statements contained on this MD&A are expressly certified by this cautionary assertion.

Extra data on these and different elements that would have an effect on the Companys operations and monetary outcomes are included in stories on file with relevant securities regulatory authorities and could also be accessed on Athabascas web site or below Athabascas profile on SEDAR at www.sedar.com.



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