Brazil Minerals, Inc. Reports Strong Growth in Cash Flow From Operations in Q1 2014
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BELO HORIZONTE, BRAZIL--(Marketwired - May 21, 2014) - Brazil Minerals Inc. (
The first quarter of 2014 had the following corporate highlights:
(1) Operating activities generated positive cash flows of $255,877, which favorably compares to negative flows in the same period in 2013;
(2) We finished the quarter with $665,461 in cash;
(3) We purchased $244,000 in vital mining equipment for Duas Barras, our revenue-generating diamond and gold mine, allowing us to retire and return expensive monthly rental machinery;
(4) We paid off and retired a $25,000 note;
(5) We added Luis Mauricio Ferraiuoli de Azevedo, a preeminent Brazilian mining lawyer who is also a licensed geologist, to our Board of Directors.
BMIX, together with its subsidiaries, is in the business of mining diamonds and gold, and selling both polished and rough diamonds as well as gold. The Company also owns the exploration rights to a gold and copper property and has an option on a mineral property with titanium, vanadium, and iron. As of March 31, 2014, the Company owned 55% of Mineração Duas Barras Ltda. ("Duas Barras"), a Brazilian company with two mineral rights, including a mining concession. During the first quarter of 2014, BMIX focused on improvements to the operations in Duas Barras which included the acquisition of capital equipment for production (excavator, bulldozer, truck, portable generator and motor) that replaced expensive monthly rentals. Furthermore, as discussed in past public filings, given that the first quarter is the rainy season in the region where Duas Barras is located, local miners generally diminish or cease productive alluvial operations. We used the time to conduct planned maintenance of our plant and equipment and took steps to reserve production for processing into polished diamonds, which have higher margins.
Marc Fogassa, Chairman and CEO of BMIX, commented, "We are very pleased with the results and particularly the net cash flow generated by our operating activities. We have dramatically enhanced our capabilities at Duas Barras with the machinery purchased in the quarter and placed in operations. In parallel, we are taking other necessary steps in the verticalization of our business model to allow a greater percentage of revenues from sales of higher margin polished diamonds. We know what needs to be done and my team is advancing daily to expand our business."
About Brazil Minerals, Inc.
Brazil Minerals Inc. (
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.