Arianne Phosphate Reports Financial Results for Q4 and YE 2014
06.04.2015 | CNW
SAGUENAY, QC, April 6, 2015 /CNW/ - Arianne Phosphate Inc. (the "Company" or "Arianne") (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec's Saguenay-Lac-Saint-Jean region, reported its financial results for the three- and 12-month periods ended December 31, 2014. All amounts are in Canadian dollars unless noted.2014 Financial and Operational Highlights
- Optimized its operating production process that will result in costs savings of US$3.91 per tonne of phos-rock concentrate or approximately US$280 million over Lac à Paul's expected 26-year life of mine due to the elimination of two reagents;
- Strengthened its leadership team through the appointment of Pierre Fitzgibbon, as Executive Chairman of the Board of Directors, Dominique Bouchard asVice-Chairman of the Board of Directors, Jean-Sebastien David as Chief Operating Officer and Dino Fuoco as Chief Financial Officer;
- Announced the closing of an $8 million private placement financing that included a $2 million investment from the Québec Government through Ressources Québec, a subsidiary of Investissement-Québec;
- Increased its resources at the measured and indicated categories by 13% to 688 million tonnes at a grade of 7.01% at the Paul Zone of the Lac à Paul project; and
- Determined the location of the deep-water port on the Saguenay River that will be used for the shipment of its phosphate concentrate to clients.
Highlights Subsequent to Year-end
- Presented the environmental impact assessment and economic benefits related to its Lac à Paul project to the Bureau d'audiences publiques sur l'environnement ("BAPE"), an independent agency, in February 2015, marking the start of Arianne's public information and consultation process aimed at securing environmental permitting;
- Successfully completed a customer trial program that produced a phosphate concentrate with a superior grade and lower contaminants than previously ever achieved by the company; and
- Announced a reduction in estimated operating production costs of US$4.26 per tonne or a cost savings of almost 5% from the company's original Feasibility Study (FS). The cost reduction is expected to result in annual savings of approximately US$12.75 million, or close to US$330 million. over the planned 26-year life of mine. According to Arianne's FS filed in October 2013, the Company initially projected an FOB Port of Saguenay cost of US$93.70 per ton for its premium quality 39% P2O5 concentrate.
"Arianne has developed considerable momentum over the past 12 months," said Jean-Sebastien David, Chief Operating Officer of Ariane Phosphate. "Most significantly, we strengthened the economics of our Lac à Paul project, attracted the Quebec government as a strategic investor and started the permitting process that, upon successful completion, will serve as a major catalyst for our company. Combined, these developments further underscore the value of Lac à Paul and its potential to provide customers in the food and agiculuture sectors with surety of supply."
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in 2014. In the fourth quarter and full- year periods ended December 31, 2014, the Company incurred respective net losses of $1.4M and $5.6M, compared to $1.1M and $6.4M in the comparable periods in 2013. The Company's net loss and cash burn are consistent with other development stage mining companies.
The net loss for the fourth quarter 2014 includes $196,260 in share-based compensation expense, down from $212,829 in Q4 2014. The Company also realized a gain on the disposition of mining property of $197,000 in Q4 2014 (nil in 2013).
Liquidity
At December 31 2014, the Company had $3.8M cash on hand that will be allocated towards general working capital and advancing development of Lac àPaul in 2015. Based on current spending estimates for future project development, Arianne anticipates it will need additional financing before the end of 2015.
Outlook
In 2015, Arianne will be focused on the ongoing advancement of its Lac àPaul Project. Expected milestones in 2015 include:
- Additional optimization of operating and capital expenses;
- Signing "agreements in principle" with First Nations to proceed with development of the Lac à Paul Project;
- Securing environmental permitting from appropriate government agencies; and
- Securing strategic partners and financing.
Arianne's Management Discussion and Analysis and Financial Statements for the three- and twelve-month periods ended December 31, 2014 are available on the Company's website and on SEDAR at www.sedar.com.
Qualified Person
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release. Mr. David is also the Company's Chief Operating Officer.
About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants. The Company has 95,325,755 million shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Follow Arianne on:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
YouTube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing News: http://resourceinvestingnews.com/?s=Arianne
Forward Looking Statements and Information: This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
Contact
Arianne Phosphate Inc.
Jean-Sébastien David, C.O.O.
Tel. : 418-549-7316
j.s.david@arianne-inc.com;
Info:
Dino Fuoco, C.F.O.
Tel. : 514-945-9313
dino.fuoco@arianne-inc.com
Joe Racanelli
Tel. : 416-815-0700, 243
jracanelli@tmxequicom.com
Medias:
Karyna Tremblay, Community Relations Coordinator
Tel.: 418-549-7316
karyna.tremblay@arianne-inc.com