Athabasca Minerals Inc. Announces Year End 2013 Results

Mar 31, 2014

March 31, 2014 EDMONTON, ALBERTA. Athabasca Minerals Inc. (“Athabasca” or the “Corporation”) (TSX Venture: ABM) is pleased to announce its financial results for the fourth quarter and year ended November 30, 2013. The Corporation’s audited financial statements and management’s discussion and analysis (“MD&A”) for the year ended November 30, 2013 are available on SEDAR at www.sedar.com and on the Athabasca Minerals website at www.athabascaminerals.com.

Q4 2013 Highlights

• During Q4 2013, Athabasca generated net aggregate sales of $3,698,041 from corporate-owned aggregate operations versus $989,513 during Q4 2012, an increase of $2,708,528 or 273.7%.
• The Corporation delivered 136,993 tonnes from corporate-owned aggregate operations in Q4 2013 versus the delivery of 63,945 tonnes during Q4 2012, an increase of 73,048 tonnes or 114.2%.
• Total aggregate production at the Kearl aggregate operation was significantly increased, with Q4 gravel production of 307,000 tonnes accounting for 62% of total gravel produced during fiscal 2013. An additional 123,000 tonnes of processed sand was also produced during Q4.
• During Q4, substantial improvement in cost efficiency was realized with Kearl pit aggregate processing, through the increase in total production with a decrease in the cost per tonne of aggregate produced.

Fiscal 2013 Year End Highlights

• Athabasca generated record total revenue of $25,118,000 for the fiscal year ended November 30, 2013, an increase of $10,395,325 or 70.6% over the prior year.
• During the fiscal year ended November 30, 2013, the Corporation generated net aggregate sales of $14,698,719 from corporate-owned aggregate operations versus $3,040,328 during fiscal 2012, an increase of $11,658,391 or 383.5%.
• By fiscal 2013 year-end, Athabasca had successfully processed and stockpiled finished goods inventory with a cost of nearly $7.5 million. This crushed gravel and sand inventory is available for sale to meet regional aggregate demand.
• The Corporation continued to significantly benefit from cash flow collected from its land use agreement for work camp purposes, with more than $525,000 cash received during fiscal 2013.
• The Corporation was strengthened through the addition of previously announced appointments to its board of directors, its advisors, and senior management
• Communication with Alberta Environment and Sustainable Resources Development resulting in notification during February 2014 that the department has completed its review of the Firebag Project, enabling the Corporation to next provide a Conservation and Reclamation Business Plan to the department for their review before final approval.

President and CEO Dom Kriangkum states; “We are pleased with the Corporation’s progress in supplying gravel, sand and industrial minerals in Alberta. We continue to grow and improve our efficiency at aggregate production, while identifying new sources of industrial minerals, including aggregates, required for oil sands projects, infrastructure and oil and gas exploration. In particular, we are working hard to transition from aggregate pit management toward further developing and increasing aggregate production from Athabasca-owned pits where the opportunity for greater margins are higher. With our growth from less than 20 employees to a current staff of greater than 60 members, we look forward to continuing to increase our productivity and to service regional product requirements.”

Operations Update

Susan Lake aggregate management operations are ongoing, while at a slower pace than normal, as light aggregate demand within the region has been experienced thus far in 2014. From discussions with its major customers, and from other external sources, management anticipates a near term ramp-up in aggregate demand, followed by strong demand through the remainder of the fiscal year.

Activity at our corporate-owned pits is ongoing with the planned temporary suspension of crushing operations at Kearl pit, which began in mid-December 2013, is expected to continue through approximately May 2014, at which time spring conditions and dewatering at the pit will be addressed. Thereafter, Athabasca intends to process aggregate at its Kearl pit during the period June through mid-December 2014.

Management intends to have completed all crushing operations at the Cowpar pit, a pit that was made available through a joint venture announced March 4, 2014, before removing its crushing spread during March 2014. Management then intends to haul its crushing spread to the Conklin stockpile site for maintenance and storage before it is transported to the Kearl pit for set-up in late May.

Activity from our Logan pit is now complete for the winter season with hauling of aggregate expected to resume in late fall 2014, at such time that winter roads can be accessed and product is deliverable.

Read More: http://www.athabascaminerals.com/s/news.asp?ReportID=645310

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