|By Marketwired .||
|September 13, 2013 11:21 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 09/13/13 --
(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, 2013.
PhosCan reported a net (loss) of ($135,318) for the three months ended July 31, 2013 compared to net income of $50,186 for the same period of the previous year. The decrease in net income of $185,504 was primarily due to increases in administration and share-based payment expenses and a decrease in foreign exchange gains, partially offset by an increase in gains on sale of marketable securities. For the six months ended July 31, 2013, the Company reported a net (loss) of ($270,118) compared to a net (loss) of ($48,466) for the same period of the previous year. The increase in net loss of $221,652 was primarily due to increases in administration and share-based payment expenses, partially offset by increases in gains on foreign exchange and on sale of marketable securities.
For the three and six months ended July 31, 2013, the Company reported other comprehensive income (loss) of $11,429 and ($8,874), respectively, resulting in comprehensive (losses) for the periods of ($123,889) and ($278,992), respectively. At July 31, 2013, the Company owned marketable securities with a total market value of $967,740. The reported other comprehensive income (loss) represented unrealized gains (losses) on these investments.
Cash and short-term investments were $57,059,973 at July 31, 2013 versus $59,607,711 at January 31, 2013. Working capital was $58,087,154 versus $60,005,891. The decrease in working capital of $1,918,737 was primarily due to: the reclassification of $930,000 as restricted cash under non-current assets, expenditures of $779,479 on the repurchase of the Company's common shares under the Renewed Bid, expenditures of $672,390 on corporate expenses, and expenditures of $120,184 on the Martison Project; net of interest income of $416,241, proceeds of $208,846 from the sale of a portion of its common shareholdings in public-companies, and realized foreign exchange gains of $181,200.
Capitalized expenditures on the Martison Project were $93,843,200 at July 31, 2013, an increase of $60,376 from January 31, 2013.
The Company repurchased for cancellation during the quarter an aggregate of 485,704 of its common shares under a normal course issuer bid. To date, PhosCan has repurchased and cancelled an aggregate of 9,497,504 of its common shares under its normal course issuer bids at an average price per share of $0.28, which represents a price discount to the pro forma sum of cash, short-term investments and marketable securities per share of 25.1%. Under its current normal course issuer bid, the Company may purchase up to 12 million of its common shares. The bid will remain open until October 18, 2013 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid. Purchases pursuant to the normal course issuer bid are being conducted through RBC Dominion Securities Inc.'s institutional equity trading desk.
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, 2013 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.
PhosCan also announces that Christopher Hodgson has resigned as a director of the Corporation.
PhosCan owns a 100% interest in the Martison Project and currently has cash, short term investments and marketable securities of approximately $58 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