Printer Friendly

Canada : Athabasca Minerals Inc. First Quarter Financial Results.

Athabasca Minerals Inc. ("Athabasca" or the "Corporation") is pleased to announce its financial results for the first quarter ended March 31, 2017. The Corporation's interim financial statements and management's discussion and analysis ("MD&A") for the three months ended March 31, 2017 are available on SEDAR at www.sedar.com and on the Athabasca Minerals website at www.athabascaminerals.com.

The Corporation successfully defended Syncrude's application for a preservation order, with the Corporation receiving a favourable decision of the Court of Queen's Bench of Alberta on January 24, 2017;

Working capital $5.9 million; current debt $0.9 million; non-current debt $0.4 million;

Revenue for the three months ended March 31, 2017 declined to $0.5 million from $1.5 million in 2016, reflecting lower activity levels in the oil and gas industry and the timing of orders year over year;

During the three months ended March 31, 2017, 87,000 tonnes of 40mm product was relocated from a winter access only pit to a pit with year-round access and

The Corporation received First Nations Consultation approval for the silica sand Firebag project.

During Q1 2017, the Corporation continued to see reduced sales volumes resulting from the continuing economic downturn in the oil and gas industry and the slow start to the construction season. The significant decline in sales at its corporate pits is due to an unseasonably large order in Q1 2016. The Corporation continues to recognize efficiencies from its ongoing cost control measures.

The Corporation relocated 87,000 tonnes of 40mm product from a winter access only pit to a location with year-round access and has production plans to rebuild its corporate pit inventory later in the fiscal year. Management has initiated a more aggressive sales program to new and existing customers for sand and gravel from its corporate owned pits. The Corporation has received First Nation Consultation approval for the Firebag silica sand project.

As at March 31, 2017 the Corporation is not in compliance with certain financial covenants on their credit facility with HSBC Bank Canada, namely the funded debt to EBITDA ratio and the debt service coverage ratio. The Corporation has requested a forbearance for the three months ended March 31, 2017 on the funded debt to EBITDA ratio and the debt service coverage ratio covenants from HSBC Bank Canada. The lender and the Corporation are working together with respect to the forbearance request.

To facilitate the management of these ratios, the Corporation prepares quarterly and annual financial budgets. These budgets are updated regularly to reflect varying factors including the seasonality of the construction industry, fluctuating weather conditions, timing of projects and current market demand, current and forecasted prices, acquisitions, and general industry conditions, to assess how these factors may impact covenant compliance in future periods.

[c] 2017 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).

COPYRIGHT 2017 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Article Type:Financial report
Date:May 31, 2017
Words:475
Previous Article:United Kingdom : New Business Models such as Uber for Trucks to Transform Freight Industry from Product-based to a Service-based.
Next Article:Virgin Islands (U.S.) : Taxi Drivers To Benefit From Training In Passenger Transport.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters