SOURCE: Brazil Minerals, Inc.

Brazil Minerals, Inc.

October 23, 2013 13:56 ET

Brazil Minerals, Inc. Announces 3rd Quarter Results: Revenues Grow 83%, Net Burn Diminishes 43%, and Gross Margin Expands 4% Quarter-Over-Quarter

Significant Improvement on Major Operating Metrics

BELO HORIZONTE, BRAZIL--(Marketwired - Oct 23, 2013) - Brazil Minerals, Inc. (OTCQB: BMIX) ("Brazil Minerals" or "BMIX"), a diamond and gold producer with resources and assets in Brazil, reported its financial results for the three months ended September 30, 2013 in its Quarterly Report on Form 10-Q, filed with the SEC on October 23, 2013. A summary of BMIX's financial performance and business updates follows.

 
 
Third Quarter 2013 Results Highlights
For the period ended September 30, 2013 (financial results recorded in USD)
 
    Second Quarter
2013
  Third Quarter
2013
  Quarterly Change
Gross Revenues   $145,619   $266,070   +83%
Gross Profit Margin   43.06%   47.37%   +4.31%
Net Operating Profit/Loss   ($153,461)   ($87,199)   -43%
Total Assets   $2,534,018   $2,523,840   -0.40%
Common Shares Outstanding   70,963,463   70,983,463   +0.03%
             
             

Marc Fogassa, BMIX Chairman and CEO, stated, "We are extremely pleased with these results. As in the last quarter, they show sequential improvement on major operating metrics, and we expect these trends to continue. For the fourth quarter of 2013, we plan on beginning to sell diamonds which we mine, cut, polish, and submit for grading; thus we will have sales from both rough, as has been the case so far, as well as our own initial supply of polished diamonds. It will be a significant step in our strategy to verticalize our diamond business and retain as much profitability as possible."

Other Third Quarter Highlights

Diamond Business

  • The first BMIX polished diamonds mined from Duas Barras were graded by the Gemological Institute of America ("GIA"), considered the premier global standard for the evaluation and grading of jewelry diamonds.
  • BMIX has initiated a process of setting aside a portion of our rough diamonds that will be cut and polished in Brazil, exported to the U.S. for grading at GIA, then sold. The first sale of such diamonds is expected to occur in the fourth quarter of 2013.

Other Business

  • BMIX has retained a business development resource, compensated only on successful performance, to advance current conversations as well as initiate other contacts with respect to BMIX's growing pipeline of projects which include titanium, vanadium, iron, gold, as announced, as well as other mineral situations in the due diligence phase. BMIX's goal is to identify potential development partners for its high quality projects so that it can leverage the opportunities it pursues.

Corporate Events & Other

  • BMIX presented at the Rodman & Renshaw Global Investment Conference, sponsored by H.C. Wainwright, and held in New York, NY in September 2013.
  • BMIX presented at the Euro Pacific Capital Global Investment Conference in New York, NY in September 2013.
  • BMIX has been invited and will be presenting at the LD Micro Conference in Los Angeles on December 3, 2013.

Outlook

BMIX expects its revenues to continue to increase over time due to sequential improvement in the production of rough diamonds from Duas Barras as well as the initiation of sales of polished diamonds. BMIX expects its net losses to continue to decrease over time due to revenue growth and effective cost controls.

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTCQB: BMIX), a U.S. corporation, is a diamond and gold producer with resources and assets in Brazil. Its mining assets include a 55% ownership in Duas Barras, a diamond and gold producing mine. BMIX has exploration projects for vanadium, titanium, iron, and gold, and a healthy pipeline of other sizeable opportunities throughout Brazil. Its Brazilian headquarters is in São Paulo, the financial hub of Latin America, with an operational office in Belo Horizonte, the capital of the state of Minas Gerais, a name that means "General Mines," and serves as reminder of the strength of that region of Brazil for natural resources. More information on BMIX, including an investor presentation, can be found at www.brazil-minerals.com.

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.

Contact Information

  • CONTACT

    Marc Fogassa
    Chairman & CEO
    Brazil Minerals, Inc.
    324 South Beverly Drive, Suite 118
    Beverly Hills, CA 90212 USA
    Telephone: +1 (213) 590-2500
    Email: Email Contact
    Website: www.brazil-minerals.com