PhosCan Chemical Corp.
TSX : FOS

PhosCan Chemical Corp.

July 13, 2011 13:30 ET

PhosCan Chemical Announces Results for Quarter Ended April 30, 2011

TORONTO, ONTARIO--(Marketwire - July 13, 2011) -

(All dollar amounts are expressed in Canadian currency unless otherwise noted.)

PhosCan Chemical Corp. (TSX:FOS) today released its quarterly results for the period ended April 30, 2011.

The current quarter represents the first for which the Company has prepared its interim consolidated financial statements in accordance with International Financial Reporting Standards. Beginning with the twelve month period ended January 31, 2009, PhosCan has reported on the details and progress of its IFRS changeover plan in each of its management's discussions and analyses. As part of the final step in the Company's IFRS changeover plan, the Company's auditors, McCarney Greenwood LLP, reviewed the interim consolidated financial statements for the sole purpose of assisting PhosCan's Audit Committee in discharging its responsibilities with respect to the interim consolidated financial statements.

PhosCan reported a net loss of $1,030,986 for the three months ended April 30, 2011 compared to a net loss of $529,352 for the same period of the previous year. The majority of the net loss for the three months ended April 30, 2011 consisted of an unrealized foreign exchange loss of $764,643, which was due to the impact of a depreciating U.S. dollar on the approximate US$20.9 million of U.S. dollar-denominated cash and cash equivalents held by the Company at April 30, 2011.

Cash and cash equivalents plus short-term investments were $66,131,253 at April 30, 2011 versus $67,904,058 at January 31, 2011. Working capital was $65,724,314 versus $67,890,731.

Capitalized expenditures on the Martison Project were $88,596,243 at April 30, 2011 as compared to $87,289,650 at January 31, 2011. During the quarter the Company elected to pay an $812,800 fee-in-lieu of additional claim assessment work to complete its application to take a majority of the claims surrounding the Martison phosphate deposit to lease and effective May 1, 2011 the lease application was approved. The Company continues to advance the bench and pilot plant beneficiation testing of phosphate ore from the Martison Project, phosphoric acid pilot plant testing, and the test program to find a process to profitably recover niobium and rare earths contained in the Martison Deposit.

For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the three months ended April 30, 2011 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.

Contact Information

  • PhosCan Chemical Corp.
    Stephen Case
    President & CEO
    (416) 972-9222
    www.phoscan.ca