Whitemud Resources Reports Operations Update and 2008 Year End Financial Results
Thu Apr 30, 7:15 PM
ca.news.finance.yahoo.com
CALGARY, April 30 /CNW/ - Whitemud Resources Inc. ("Whitemud" or "the Company") (TSXV: WMK.V) is pleased to provide an operations update and summary financial results for the twelve months ended December 31, 2008.
Whitemud Exploiting Opportunities in Economic Downturn
In the fourth quarter of 2008, Whitemud Resources successfully launched Whitemud(MK) (the commercial trade name for our metakaolin) to key markets in the Prairie Provinces and Quebec. This resulted in the introduction of Whitemud(MK) into a number of high profile construction projects. Whitemud Resources worked closely with national engineering firms, construction contractors, and major concrete producers to evaluate and specify the inclusion of Whitemud(MK) in commercial applications. The product met or exceeded performance expectations and is being specified in a growing number of large projects which will commence construction in the upcoming construction season.
A number of high profile projects have included Whitemud(MK) in their
concrete:
- Saskatchewan Highways Bridge in Estevan, SK
- Leduc Recreation Centre in Leduc, AB
- University of Calgary - Taylor Family Digital Library in Calgary, AB
- South Calgary Hospital in Calgary, AB
- University of Calgary - Energy. Environment. Experiential Learning
(E.E.EL.) Building in Calgary, AB
Shipments were made to various parts of Canada and the United States; including rail shipments to Holcim (Canada) Inc. (formerly known as St. Lawrence Cement) in Longueuil, Quebec. Whitemud is making arrangements with several other concrete producers in the U.S. and Canada to deliver Whitemud(MK) to their major concrete plants. Deliveries are expected to increase as the 2009 construction season significantly ramps up.
With the current economic downturn, concrete and oil well servicing companies are faced with pressure to lower costs and differentiate their product offerings in order to be more competitive. The unique ability of Whitemud(MK) to lower concrete costs while enhancing performance positions Whitemud to penetrate and grow sales in these sectors.
In the area of environmental benefits, Whitemud(MK) demonstrates exceptional performance in achieving LEED targets. LEED(R) (Leadership in Energy and Environmental Design) is an international standard for construction projects that rewards environmental innovation, sustainability and reduction in CO(2) footprints. Management believes that Whitemud(MK) provides a unique, cost-effective solution and the growing environmental concerns that are rapidly impacting the concrete industry.
As a result of the environmental and economic benefits, we are well positioned to capitalize on infrastructure construction revitalization spending. Several U.S. departments of transportation (DOTs), Canadian provincial transportation and infrastructure departments, and North American cities are currently evaluating metakaolin for use in their concrete construction projects.
The oil well service industry initiated the use of Whitemud(MK) in Alberta and North Eastern British Columbia. Whitemud(MK) delivered good performance and we expect the use of Whitemud(MK) to expand to other locations across Western Canada as drilling activity resumes. Whitemud continues to actively pursue opportunities with other international, U.S. based oil well cementers.
A relatively new opportunity for Whitemud(MK) is in underground mining where shotcrete is used to support underground tunnels. Independent testing has demonstrated that Whitemud(MK) enhances shotcrete performance and shipments have commenced to a number of mining operations in Eastern Canada and British Columbia.
Also, we have developed a relationship with an established international brokerage firm to explore Asian and European opportunities in construction and oil well cementing. Interest from China resulted in a 24-tonne container of Whitemud(MK) being shipped to Beijing for evaluation by Chinese contractors and state agencies. Whitemud(MK) is very competitive with silica fume for use in high performance concrete. It may be feasible to supply large scale projects internationally.
Operations Update
Since December 2008, the plant has been shut down to make some modifications to improve plant performance and reliability. These modifications have been completed and the plant is ready to start-up as soon as necessary to produce additional product. Current product inventory is expected to be sufficient to meet demand into June 2009, therefore the plant operations are expected to restart in early June.
Financial highlights and results for the year ended December 31, 2008:
- The Company closed a bought deal private placement of 2,143,000
special warrants that were subsequently exchanged for common shares
for total gross proceeds of $15,001,000 ($13,821,313 net of offering
costs).
- Working capital available at year end amounts to $1,892,302. In early
2009, the Company entered into a short-term bridge loan financing
with its bank for $2 million to supplement working capital.
- The Company is actively involved with a syndicate of underwriters in
seeking additional financing. The Company has conducted extensive
discussions with various parties with significant progress being
made.
- Commercial shipments of product commenced in the fourth quarter and
will be slowly ramping up through 2009.
- Net loss for the year ended December 31, 2008 amounted to $7,435,502
($0.46 per share) compared to $4,420,946 ($0.30 per share) for the
year ended December 31,2007.
- In 2007 the Company was developing while it constructed the plant and
mine, whereas in 2008 the Company became fully staffed and the
processing facility was put into full industrial production; making
comparisons between the two periods difficult.
A summary of financial results is presented below:
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Income Statement Summary For the Year Ended
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December 31, December 31,
2008 2007
$ $
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Interest and miscellaneous income 207,739 1,099,718
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Expenses 7,615,191 5,520,664
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Non-cash stock based compensation expense
(included above) 1,991,823 1,800,443
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Net loss 7,435,502 4,420,946
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Net loss per share 0.46 0.30
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Balance Sheet Summary As at As at
December 31, December 31,
2008 2007
$ $
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Working capital 1,892,302 5,076,996
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Total assets 70,718,171 67,014,124
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Shareholder equity 67,052,501 58,246,618
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About Whitemud Resources
Whitemud Resources Inc. (www.whitemudresources.com) is a Canadian-based
corporation that is exploiting a large kaolin deposit in southern
Saskatchewan. The Company produces Whitemud(MK), a high-reactivity,
cement-grade metakaolin that enhances the performance of cement used in
construction and in oil and gas wells. The Company is positioned to benefit
from expanding North American infrastructure needs and growing environmental
pressures.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Forward-Looking Information
This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements made under the headings "Whitemud Exploiting Opportunities in Economic Downturn" and "Operations Update" and in particular comments relating to expectations relating to the growing demand for the application of its Whitemud product, expansion in the oil well service industry, developments in underground mining applications and interest from China. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of Whitemud may be affected by a variety of variables and risks associated with the mining and mineral processing industry, such as, loss of market, competition, ability to access sufficient debt and equity capital from internal and external sources, ability to expand in the marketplace, exploration and development plans and results, anticipated capital expenditures and financing thereof, timing of applications and approvals as well as risks and variables associated in general with the precast concrete industry, the oil well service industry and infrastructure projects upon which Whitemud is dependent for the consumption of its Whitemud product. As such the future plans and objectives of Whitemud are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. The Company has, in part, relied on information provided to it by its customers and potential customers, as well as reports and forecasts provided by parties involved in infrastructure projects, the precast concrete industry and oil well service industry in order to develop its forward-looking statements and there is no assurance that the assumptions, forecasts or information relied upon by the Company is correct, or will not be affected by events or circumstances beyond the control of the Company. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
For further information on Whitemud, go to www.whitemudresources.com
For email alerts regarding Whitemud Resources, please go to Whitemud Resources Inc. - Email Alerts
Contacts
Burl Aycock
Chairman & CEO
Whitemud Resources
Telephone: (403) 695-1012
Ron Love
Vice President
Finance and CFO
Whitemud Resources
Telephone: (403) 517-0040
Kelly Babichuk
President and COO
Whitemud Resources
Telephone: (403) 517-0040
Kevin Graham
Vice President
Communications
Whitemud Resources
Telephone: (403) 517-0040 |
