PhosCan Chemical Corp.
TSX : FOS

PhosCan Chemical Corp.

December 13, 2011 17:23 ET

PhosCan Chemical Announces Results for Quarter Ended October 31, 2011

TORONTO, ONTARIO--(Marketwire - Dec. 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 October 31, 2011.

PhosCan reported net income of $1,336,756 for the three months ended October 31, 2011 compared to $182,214 for the same period of the previous year. The positive quarter-over-quarter result was due to decreases in administration and share-based payment expenses and increases in interest income and foreign exchange gain. For the nine months ended October 31, 2011, the Company reported net income of $566,924 compared to a net loss of $358,199 for the same period of the previous year.

Cash and cash equivalents plus short-term investments were $66,185,187 at October 31, 2011 versus $67,904,058 at January 31, 2011. Working capital was $66,396,219 versus $67,890,731. The decreases were primarily a result of expenditures on the Martison Project and administration expense net of realized foreign exchange gains.

Capitalized expenditures on the Martison Project were $89,497,860 at October 31, 2011 as compared to $87,289,650 at January 31, 2011. The Company continues to advance the bench and pilot plant beneficiation testing of phosphate-enriched residuum from the Martison Project and the test program to find a process to profitably recover niobium and rare earths contained in the Martison Deposit. PhosCan recently announced that it intends to conduct work at the site of the Martison Deposit during the winter of 2012. The Company has commenced construction of a temporary winter road to access the site and intends to conduct hydrogeological testing and sonic drilling to collect samples for ongoing metallurgical testing.

During the quarter, the Company announced a normal course issuer bid. Under the bid, the Company has repurchased and cancelled 3,934,000 of its common shares. The average price per share paid was $0.29, which represents a price discount to pro forma cash and short-term investments per share of 24.7%. PhosCan may purchase up to 12 million of its common shares under the bid, which will remain open until October 17, 2012 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid.

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 and nine months ended October 31, 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