TORONTO, ONTARIO--(Marketwired - April 26, 2013) -
(All dollar amounts are expressed in Canadian currency unless otherwise noted.)
PhosCan Chemical Corp. (TSX:FOS) today released its results for the year ended January 31, 2013.
PhosCan reported a (loss) of ($336,147) for the twelve months ended January 31, 2013 compared to net income of $542,823 for the previous fiscal year. The negative year-over-year change was due to a decrease in foreign exchange gains and an increase in share-based payment (stock option) expenses partially offset by an increase in interest income and a decrease in administration expenses. For the three months ended January 31, 2013, the Company reported a (loss) of ($287,957) versus a (loss) of ($24,101) for the same period of the previous year.
For the twelve months ended January 31, 2013, the Company reported other comprehensive (loss) of ($22,406) (2012 - $Nil) resulting in a comprehensive (loss) for the period of ($358,553) (2012 - $542,823). In June 2012, the Company commenced purchasing for investment purposes the common shares of publicly-listed companies which it believes are undervalued. At January 31, 2013, the Company owned common shares with a total market value of $522,630. The reported other comprehensive (loss) of ($22,406) represented unrealized losses on these investments.
Cash and short-term investments were $59,607,711 at January 31, 2013 versus $64,238,595 at January 31, 2012. Working capital was $60,005,891 versus $63,546,638. The decreases were primarily a result of expenditures on the Martison Project, corporate expenses and the repurchase of the Company's common shares under a normal course issuer bid.
Capitalized expenditures on the Martison Project were $93,782,824 at January 31, 2013 as compared to $91,147,796 at January 31, 2012. Subsequent to year end, the Company announced the results of a metallurgical test program aimed at finding a process to profitably recover niobium contained in the Martison Deposit. Please refer to the Company's press release of March 8, 2013 for a summary of the results.
During the year, the Company renewed its normal course issuer bid. The Company repurchased for cancellation during the year an aggregate of 2,496,860 of its common shares under the original and renewed normal course issuer bids. Subsequent to year end, the Company repurchased for cancellation 2,365,952 common shares. To date, PhosCan has repurchased and cancelled an aggregate of 8,846,812 of its common shares under the original and renewed bids at an average price per share of $0.281, which represents a price discount to the pro forma sum of cash, short-term investments and marketable securities per share of 25.0%. Under the renewed normal course issuer bid, the Company may purchase up to 12 million of its common shares, representing at the time of renewal approximately 9.4% of the Company's public float. The renewed bid will remain open until October 18, 2013 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid. Purchases pursuant to the renewed 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 year ended January 31, 2013 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.
PhosCan owns a 100% interest in the Martison Project and currently has cash, short term investments and marketable securities of approximately $59.3 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.