Matamec Reports First Quarter 2013 Financial Results
May 30 2013 - 2:07PM
Marketwired Canada
Matamec Explorations Inc. ("Matamec" or the "Company") (TSX
VENTURE:MAT)(OTCQX:MHREF) today reported its financial results for the quarter
ended March 31, 2013. All numbers are reported in Canadian dollars unless
otherwise stated.
"With 85% of the bulk work associated with the Kipawa feasibility study now
completed and the continued financial support demonstrated by Toyotsu, the
Company is well positioned financially to achieve its goal of becoming the next
global heavy rare earth producer," said Andre Gauthier, President and CEO of
Matamec Explorations.
Financial Highlights
-- Net loss for the quarter of $274,336 or ($0.002 per share), compared to
a net loss of $691,704 or ($0.006 per share) in the first quarter of
2012;
-- Working capital of $4.62 million including cash and cash equivalents of
$2.44 million;
-- Current assets for the quarter totalled $6.29 million compared to $5.99
million in the first quarter of 2012;
-- Received as of May 16, 2013 from Toyotsu, $6.94 million of the $7.5
million or $15.44 million of the maximum $16.0 million for the
completion of a definitive feasibility study on the Kipawa deposit;
-- Matamec to receive reimbursed tax credits for qualifying exploration
expenses in the amount of $3.8 million approximately (2013: $2.6
million).
Kipawa JV Operational Highlights
-- 85% of the bulk work for the feasibility study is completed and it is
now for the independent engineering firms Roche Ltd. and Genivar to
gather the remaining information and to complete the report;
-- The activities for the last quarter surrounding the feasibility study
for the Kipawa HREE were focussed on laboratory test work to optimize
the ore process flow diagrams and the process equipment sizing. The
general concepts of all the infrastructures required for the operation
have been frozen so the engineering firm could work on OPEX and CAPEX in
order to complete the feasibility study;
-- An Environmental and Social Impact Assessment conducted by Golder
Associates initiated in May 2012 for the Kipawa project continues to
advance with results for inclusion in the feasibility study;
-- Variability metallurgical test work is near completion with the ability
to process material from any part of the deposit;
-- Development of the purification circuit ongoing, for producing a high
purity heavy and light rare earth product;
-- Second pilot plant planned for second half of 2013, for further
optimization and improvement on the overall recovery;
-- Information meetings continue with regional and local citizens,
including harmonization roundtables and follow-up; and
-- Meetings continue with the Band councils and populations of the two
Algonquin communities involved in the project, Eagle Village First
Nation and Wolf Lake First Nation.
SELECTED ANNUAL INFORMATION
The following table includes selected consolidated financial data, prepared in
accordance with International Financial Reporting Standards ("IFRS"), for the
period ended March 31, 2013 and 2012.
----------------------------------------------------------------------------
Results as at March Results as at March
31, 2013 31, 2012
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$ $
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Income - Interest 14,845 8,470
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Expenses
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General and administrative expenses 494,282 528,112
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Stock-based compensation - 171,737
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Deferred income tax (recovery) (205,773) -
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Net loss 274,336 691,704
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Net loss per share, basic and
diluted 0.002 0.006
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Balance sheet Balance sheet
as of as of
March 31, 2013 December 31, 2012
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$ $
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Total assets 22,796,213 20,445,042
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Cash and cash equivalents 2,435,723 1,692,598
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Equity 15,631,556 15,910,692
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2013 First Quarter Financial Results Available
The complete financial statements, notes to financial statements, and
Management's Discussion and Analysis for the first quarter ended March 31, 2013,
are available on the Company's website - www.matamec.com. These documents are
also filed on SEDAR, and will be accessible from the SEDAR website at
www.sedar.com.
About Matamec
Matamec Explorations Inc. is a junior mining exploration company whose main
focus is in developing the Kipawa HREE deposit with TRECan. Following the
positive conclusion of the PEA study filed on SEDAR in March 2012 and the hiring
of a VP Project development and Construction, Matamec and TRECan decided to move
directly to the feasibility study. The March 2012 press release highlighted that
the project has robust economics such as: $606 million before-tax value (NPV8%),
a 36.9% before-tax IRR, $2.8 billion revenue, $1.67 billion EBITDA, a before-tax
payback period of 2.4 years, etc. (see press release dated January 30, 2012).
Resources that are not mineral reserves do not have demonstrated economic
viability.
In parallel, the Company is exploring more than 35km of strike length in the
Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum
mineralization on its Zeus property.
The company is also exploring for gold, base metals and platinum group metals.
Its gold portfolio includes the Matheson JV property located along strike and in
close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins,
Ontario.
In Quebec, the Company is exploring for lithium and tantalum on its Tansim
property and for precious and base metals on its Sakami, Valmont and Vulcain
properties. As well, it is exploring for gold together with Northern Superior
Resources Inc. on the Wachigabau property.
FOR FURTHER INFORMATION PLEASE CONTACT:
Andre Gauthier
President
(514) 844-5252
(514) 844-0550 (FAX)
info@matamec.com
Edward Miller
Director IR
(514) 844-5252 ext. 205
(514) 844-0550 (FAX)
edward.miller@matamec.com
www.matamec.com
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