PhosCan Chemical Corp.
TSX : FOS

PhosCan Chemical Corp.

December 13, 2013 16:34 ET

PhosCan Chemical Announces Results for Quarter Ended October 31, 2013

TORONTO, ONTARIO--(Marketwired - Dec. 13, 2013) -

(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, 2013.

PhosCan reported a net (loss) of ($63,539) for the three months ended October 31, 2013 compared to net income of $276 for the same period of the previous year. The ($63,815) change from net income to net loss was primarily due to increases in administration expenses and a decrease in foreign exchange gains, partially offset by an increase in gains on sale of marketable securities. For the nine months ended October 31, 2013, the Company reported a net (loss) of ($333,657) compared to a net (loss) of ($48,190) for the same period of the previous year. The increase in net loss of $285,467 was primarily due to increases in administration and share-based payment expenses, partially offset by increases in gains on foreign exchange and on sale of marketable securities.

For the three and nine months ended October 31, 2013, the Company reported other comprehensive income (loss) of $297 and ($8,577), respectively, resulting in comprehensive (losses) for the periods of ($63,242) and ($342,234), respectively. At October 31, 2013, the Company owned marketable securities with a total market value of $897,940. The reported other comprehensive income (loss) represented unrealized gains (losses) on these investments.

Cash, short-term investments and marketable securities were $57,188,736 at October 31, 2013 versus $60,130,341 at January 31, 2013 and working capital was $58,117,629 versus $60,005,891. The decrease in working capital of $1,888,262 was primarily due to expenditures of $1,616,882 on repurchases of the Company's common shares, $919,785 of corporate expenses and expenditures of $147,631 on the Martison Project; net of $623,833 of interest income, $181,200 of realized foreign exchange gains and $41,369 of realized gains on sales of marketable securities.

Capitalized expenditures on the Martison Project were $93,839,951 at October 31, 2013, an increase of $57,127 from January 31, 2013. The increase in capitalized expenditures was net of interest income of $90,504 earned on funds being held for project development.

During the quarter the Company renewed its normal course issuer bid. The Company repurchased for cancellation during the quarter an aggregate of 2,985,556 of its common shares under the normal course issuer bids. To date, PhosCan has repurchased and cancelled an aggregate of 14,483,895 of its common shares at an average price per share of approximately $0.28, which represents a price discount to cash, short-term investments and marketable securities per share of 24%. Under the renewed normal course issuer bid, the Company may purchase up to 10 million of its common shares. The bid will remain open until October 20, 2014 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid. Purchases pursuant to the normal course issuer bid are being conducted through RBC Dominion Securities Inc.'s institutional equity trading desk.

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, 2013 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.

During the quarter, PhosCan also announced the appointments of A. Murray Sinclair and Stephen H. White to its Board of Directors. Subsequent to quarter-end, each of Mssrs. Sinclair and White were granted 500,000 stock options exercisable at $0.40 per PhosCan common share for a term of 5 years, with 25% vesting immediately and 25% vesting on each of the first, second and third anniversaries of the date of grant.

About PhosCan

PhosCan owns a 100% interest in the Martison Project and currently has cash, short term investments and marketable securities of approximately $56.6 million. The Company continues to monitor economic conditions for attractively priced acquisitions and investment opportunities that would be accretive to shareholder value.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of PhosCan, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of financial markets and commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on development projects, results of future metallurgical testing, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Contact Information

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