Matamec Reports 2012 Year End Financial Results
MONTREAL, QUEBEC -- (Marketwired) -- 05/02/13 -- Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE: MAT)(OTCQX: MHREF) today reported its financial results for the fourth quarter and year ended December 31, 2012. All numbers are reported in Canadian dollars unless otherwise stated.
"2012 was an important year in Matamec's history with the signing of the joint venture agreement with Toyotsu for the Kipawa deposit," said Andre Gauthier, President and CEO of Matamec Explorations. "With 80% of 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."
Financial Highlights
-- Net loss of $122,638 or ($0.001 per share) in 2012 compared to net loss
of $900,019 or ($0.008 per share) in 2011
-- Working capital of $4.3 million including cash and cash equivalents of
$1.59 million (working capital includes $3.64 million in tax credits
receivable on December 31, 2012)
-- Current assets totalled $5.99 million in 2012 compared to $4.93 million
in 2011
-- Received as of April 23, 2013 from Toyotsu, $5.84 million of the $7.5
million or $14.3 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 associated with the JV agreement with Toyotsu for the Kipawa
deposit in the amount of $3.2 million approximately (2013: $2.0 million
and 2014: $1.2 million)
Kipawa Operational Highlights
-- 80% completion of the feasibility study by independent engineering firms
Roche and Genivar - results expected at the end of the second quarter
-- Feasibility study activities last quarter focussed on laboratory test
works to optimize the ore process flow diagrams and the process
equipment sizing. The engineering firms worked on OPEX and CAPEX in
order to pursue the feasibility study
-- Completion of the first mineral processing and hydrometallurgical first
pilot plants in the summer of 2012 at SGS Minerals Service in Lakefield,
Ontario
-- Development of the final purification process to produce a high purity
rare earth product acceptable by end-users
-- An MOU signed on July 6, 2012, with the Algonquin communities of Eagle
Village First Nation and Wolf Lake First Nation concerning the Zeus
property, including the Kipawa deposit, and a Consultation and
Exploration Protocol is currently being discussed
-- An Environmental and Social Impact Assessment initiated in May 2012 by
the firm Golder Associates. Last summer was mainly dedicated to data
collection in the field to consolidate the baseline study and to confirm
infrastructure locations for a potential mining operation
SELECTED ANNUAL INFORMATION
The following table includes selected consolidated financial data, prepared in accordance with International Financial Reporting Standards ("IFRS"), for the years 2012 and 2011.
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Fourth Quarter Years end
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Results as Results as Results as Results as Results as
of December of December of December of December of December
31, 2012 31, 2011 31, 2012 31, 2011 31, 2010
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$ $ $ $ $
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Others income
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Interest income 11,219 17,357 41,097 59,531 2,997
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Gain (loss) on
disposal of
property (345,916) - 3,982,372 - -
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Expenses
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Administrative
expenses (1,054,973) (477,225) (2,446,625) (1,640,115) (1,787,545)
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Stock-based
compensation (141,300) (38,723) (588,927) (426,343) (305,786)
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Income tax
expenses
(recovery) (603,827) (812,875) 1,106,173 (1,108,166) (344,317)
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Net loss (929,478) (417,495) (122,638) (900,019) (1,824,593)
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Basic and
diluted net
loss per share (0.007) (0.003) (0.001) (0.008) (0.020)
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Statements of Financial December 31, December 31, December 31,
Position 2012 2011 2010
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$ $ $
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Total assets 20,445,042 16,187,317 16,674,351
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Cash and cash equivalents 1,592,282 3,104,058 5,900,138
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Equity 15,910,692 15,448,303 14,936,829
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Annual Filings Available
The Company's December 31, 2012 audited consolidated financial statements and Management's Discussion and Analysis including further discussion and analysis of fourth quarter events or items that affected results of operations, financial position and cash flows, will be available in the Investor Relations section of the Company's website - www.matamec.com - or on the Canadian Securities Administrators' 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).
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.
"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."
Contacts:
Andre Gauthier, President
(514) 844-5252
info@matamec.com
Edward Miller, Director IR
(514) 844-5252 ext. 205
edward.miller@matamec.com
http://www.matamec.com/
