Athabasca Potash Inc. Announces Second Quarter Results
Mon Aug 17, 11:53 AM
http://ca.news.finance.yahoo.com/s/17082009/28/link-f-ccnmatthews-athabasca-potash-inc-announces-second-quarter-results.html
SASKATOON, SASKATCHEWAN--(Marketwire - Aug. 17, 2009) - Athabasca Potash Inc. (TSX: API.TO) ("Athabasca" or the "Company") announced that it has filed the results of Company's operations for the three months ended June 30, 2009 all of which will be available at www.sedar.com or www.athabascapotash.ca.
Highlights for the second quarter include:
- Updated Mineral Resource estimate for the Burr Project, including an estimated 425 million tonnes of Measured and Indicated Mineral resource
- Expenditures on mineral properties totalled $4,494,000 for the quarter
- Cash and cash equivalents of $22,909,138 at June 30, 2009
- Issued and outstanding shares of 37,340,867 at June 30, 2009
Burr Project
During the second quarter of 2009, API continued to focus on the Environmental Impact Statement (EIS) and the Pre-feasibility Study (PFS) for its 100% owned Burr Project. The Burr Project site is located 107 km (140 km by highway) east of the City of Saskatoon in the Province of Saskatchewan, Canada. The southern boundary of the project area is located 13.5 km north of the Lanigan Mine headframe (owned and operated by Potash Corporation of Saskatchewan) and 26 km northwest of the town site of Lanigan.
The PFS is expected to be completed in the third quarter of 2009. The EIS documents were submitted and received on August 5, 2009 by the Saskatchewan Department of Environment for review. From March 30 to April 2, 2009 API held a second round of open house consultation meetings as part of the EIS public consultation process. Open house consultation meetings were held in Burr, Humboldt, Lanigan, and Saskatoon. The Company believes there is positive public support for the development of a potash mine.
On May 29, 2009 the Company announced an updated National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant potash resource estimate for the Burr Project prepared by Lions Gate Geological Consulting Inc. ("LGGC"). The targeted mining members, including both the Upper Patience Lake ("UPL") and Lower Patience Lake ("LPL") Sub-Members, contain estimated Measured Mineral Resources of 125,800,000 tonnes at a grade of 21.27% potassium oxide ("K2O"), Indicated Mineral Resources of 299,000,000 tonnes at a grade of 23.07 % K2O, and Inferred Mineral Resources of 186,900,000 tonnes at a grade of 23.55% K2O. The updated resource estimate has an effective date of May 22, 2009. Mineral resources that are not mineral reserves have no demonstrated economic viability. Susan Lomas, P.Geo. of LGGC, is the "Qualified Person" (as defined in NI 43-101) for having prepared the mineral resource estimates and scientific and technical information in this press release and has reviewed the results reported herein. For more scientific and technical information relating to the estimated mineral resources for the Burr Project, please refer to the Company's press release dated May 29, 2009 and the technical report entitled "NI 43-101 Technical Report for a Resource Estimation on the Burr Project, Athabasca Potash Inc., Saskatchewan, Canada" with an effective date of September 18, 2008 (the "Technical Report"). The May 29, 2009 press release and the Technical Report are available at www.sedar.com or www.athabascapotash.ca.
Quarter End Results ($ 000's)
As of June 30, 2009, API's cash and cash equivalents balance decreased to $22,909 from $31,578 at December 31, 2008. At June 30, 2009, API's working capital position decreased to $20,698 from $30,368 at December 31, 2008. During the six months ended June 30, 2009, the Company raised a total of $257 through the issuance of common shares, before issuance of costs, upon the exercise of the over-allotment and brokers warrants related to the IPO completed in December 2007.
API recorded a quarterly net loss of $699 or ($0.02) per share compared to a loss of $210 or $0.01 per share for the same period in 2008. Income for the quarter resulted from the Company's investments of excess cash reserves in short-term deposits and rental of farm property. For the quarter ending June 30, 2009, the Company reported interest revenue of $49 and rental revenue of $73 compared to $534 and nil for the quarter ending June 30, 2008. Revenues decreased $257 to $122 for three months ended June 30, 2009 from $379 for 2008. This decrease was due to lower interest income resulting from lower cash deposits held during 2009 and reduced interest rates on the cash deposits held during 2009.
Total operating costs for the quarter ending June 30, 2009 equalled $1,459 compared to $686 in the second quarter of 2008. This represents an increase of $773 reflecting an increase in the majority of the Company's categories of operations. Significant increases occurred for salaries and wages ($513), office and administration ($88) and professional fees ($239).
Balance Sheet ($ 000) June 30, 2009 December 31, 2008
Current Assets 22,909 31,578
Total Assets 61,091 62,280
Current Liabilities 2,537 1,507
Future income tax liability 85 1,032
Share capital 57,608 57,222
Contributed surplus 5,850 5,805
Deficit (4,989) (3,286)
Statements of Income
(For 3 Months Ended) June 30, 2009 June 30, 2008
Interest and Rental Revenue 122 379
Operating Expenses 1,459 686
Loss for the period before income taxes (1,337) (307)
Net Loss for the period (699) (210)
Loss per share (.02) (.01)
Statements of Cash Flows
(For 3 Months Ended) June 30, 2009 June 30, 2008
Cash flows from Operating Activities (1,805) (162)
Cash flows from Investing activities (3,664) (1,001)
Cash flows from Financing Activities 205 193
Decrease in cash and cash equivalents (5,264) (970)
Cash, beginning of period 28,173 46,630
Cash, end of period 22,909 45,660
Outlook
API has adopted a cash conservative approach, focusing available human resources and short-term expenditures on the most critical activities. The Burr Project has an established mineral resource of sufficient quantity and quality to support the Pre-feasibility Study and an initiation of a Feasibility Study. The Environmental Impact Study documents have been received by the Saskatchewan Ministry of the Environment on August 5, 2009 for review. The Company intends to file a new NI 43-101 compliant technical report in connection with the PFS being undertaken on the Burr Project. This NI 43-101 technical report is expected to be available in the third quarter of 2009. As included in the Company's press release dated July 16, 2009, API has had constructive preliminary discussions with third parties regarding potential strategic alliances to develop the Burr Project and continues to pursue such discussions.
About Athabasca:
Athabasca Potash Inc. is a Canadian based corporation and was founded with a goal of establishing itself as a pre-eminent Canadian public company engaged solely in potash exploration and development with focus on the Company's wholly owned Burr Project, and to provide its shareholders with a unique investment opportunity focused entirely on potash.
Caution Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws. All statements, other than historical facts, included in this press release that address activities, events, or developments that the Company expects or anticipates will or may occur in the future, including such things as statements regarding the plans and timing for the ongoing pre-feasibility study on the Burr Project, plans for a feasibility study on the Burr Project, the timing and release of a new NI 43-101 technical report, and statements regarding the on-going public consultation process are forward-looking information. This includes statements concerning Athabasca's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Athabasca, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this press release, the words "estimate", "will", "plan", "believe", "expect", "intend", and "anticipate" and similar expressions are intended to identify forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, exploration risks, lack of historic drill hole documentation, challenges or impairments to title, the negotiation of access to certain potash mineralization, permit requirements, governmental regulations, aboriginal land use, environmental risks and competition in attracting and retaining personnel. In addition, forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, Athabasca undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Contacts
James G. Davidson
Athabasca Potash Inc.
Chief Financial Officer
(306) 933-4298
Email: info@athabascapotash.ca
Website: www.athabascapotash.ca
