Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, William Schmarzo, Elizabeth White, Carmen Gonzalez

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
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, discussed how a user-centric Application Performance Management solution can help inspire your users with every applicati...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed this shifting dynamic with an ...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackI...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT transformation?
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, 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 a...
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
SYS-CON Events announced today that SUSE, a pioneer in open source software, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SUSE provides reliable, interoperable Linux, cloud infrastructure and storage solutions that give enterprises greater control and flexibility. More than 20 years of engineering excellence, exceptional service and an unrivaled partner ecosystem power the products and support that help ...
Move from reactive to proactive cloud management in a heterogeneous cloud infrastructure. In his session at 16th Cloud Expo, Manoj Khabe, Innovative Solution-Focused Transformation Leader at Vicom Computer Services, Inc., will show how to replace a help desk-centric approach with an ITIL-based service model and service-centric CMDB that’s tightly integrated with an event and incident management platform. Learn how to expand the scope of operations management to service management. He will al...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
In a world of ever-accelerating business cycles and fast-changing client expectations, the cloud increasingly serves as a growth engine and a path to new business models. Dynamic clouds enable businesses to continuously reinvent themselves, adapting their business processes, their service and software delivery and their operations to achieve speed-to-market and quick response to customer feedback. As the cloud evolves, the industry has multiple competing cloud technologies, offering on-premises ...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
T-Mobile has been transforming the wireless industry with its “Uncarrier” initiatives. Today as T-Mobile’s IT organization works to transform itself in a like manner, technical foundations built over the last couple of years are now key to their drive for more Agile delivery practices. In his session at DevOps Summit, Martin Krienke, Sr Development Manager at T-Mobile, will discuss where they started their Continuous Delivery journey, where they are today, and where they are going in an effort ...