|By Marketwire .||
|September 12, 2012 05:19 PM EDT||
TORONTO, ONTARIO -- (Marketwire) -- 09/12/12 --
(All dollar amounts are expressed in Canadian currency unless otherwise noted.)
PhosCan Chemical Corp. (TSX:FOS) today released its quarterly results for the period ended July 31, 2012.
PhosCan reported net income of $50,186 for the three months ended July 31, 2012 compared to net income of $261,154 for the same period of the previous year. The decrease in net income of $210,698 was primarily due to a decrease in unrealized foreign exchange gain. For the six months ended July 31, 2012, the Company reported a net (loss) of ($48,466) compared to a net (loss) of ($769,832) for the same period of the previous year. The decrease in net loss of $721,366 was primarily due to a decrease in administration expenses and share-based payments and the reporting of realized and unrealized foreign exchange gains in the current period versus losses in the prior period.
Cash and short-term investments were $60,912,487 at July 31, 2012 versus $64,238,595 at January 31, 2012. Working capital was $60,904,735 versus $63,546,638. The decreases were primarily due to expenditures on the Martison Project, corporate expenses and the previously announced normal course issuer bid.
Capitalized expenditures on the Martison Project were $93,592,585 at July 31, 2012 as compared to $91,147,796 at January 31, 2012. During and subsequent to the quarter, PhosCan's efforts continued to be focussed on the metallurgical test programs aimed at finding a process to profitably recover niobium and/or rare earths contained in the Martison Deposit. The Company expects to have completed its current metallurgical program in the fourth quarter of calendar 2012.
The Company settled all outstanding supplier invoices related to the winter work program conducted from January to March of this year at the Martison Deposit site. The Company had budgeted approximately $4.5 million, including a 5% contingency, to conduct the winter work program and the Company completed the program under budget.
During the quarter, the Company repurchase for cancellation 534,500 of its common shares under the previously announced normal course issuer bid. Subsequent to the quarter end, the Company repurchased for cancellation 254,500 common shares. To date, PhosCan has repurchased and cancelled 4,773,000 of the 12 million common shares permitted under the normal course issuer bid. The average price per share paid was $0.289, which represents a price discount to pro forma cash and short-term investments per share of 24.5%. The bid will remain open until October 17, 2012 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid.
For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the three and six months ended July 31, 2012 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.
PhosCan owns a 100% interest in the Martison Project and currently has cash, short term investments and marketable securities of approximately $60.4 million. The Company continues to monitor economic conditions for attractively priced acquisitions and investment opportunities that would be accretive to shareholder value.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of PhosCan, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of financial markets and commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on development projects, results of future metallurgical testing, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
PhosCan Chemical Corp.
President & CEO