Toronto – June 29, 2020 – Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: 1MR) today announced the filing of its unaudited interim consolidated financial statements and management’s discussion & analysis (MD&A) for the three months ended March 31, 2020. Unless otherwise indicated, all currency amounts contained in this news release are expressed in Canadian dollars.
Lewis Black, Chief Executive Officer of Almonty commented:
“These results are continuing to reflect the go-forward cost structure and production profile of Almonty. To highlight this, the Company has seen an increase of 80.3% in EBITDA from mining operations when compared to the same six-month period in 2018. The Company’s outlook for the 2019 year is positive based on current pricing although we did see prices soften compared to the same quarter in 2018 but prices have now stabilized.
“This was a difficult quarter with the Covid-19 backdrop but the Company now feels the worst is behind us. During the three months ended March 31, 2020, we raised $875,000 in conjunction with closing the third of three tranches of our private placement and US$3,000,000 through debt financings. We recorded a positive EBITDA from mining operations even with putting our Los Santos mine into a planned temporary care and maintenance closure while we finalized plans to modify the plant’s infrastructure. It will require a EUR one million capital expenditure, which is expected to result in significantly higher recovery rates from the future processing of its tailings inventory.
The modifications have been complicated with the emergency laws that were put into place in Spain but the country is now emerging from that state and so the modifications can continue. Naturally, it’s disappointing that it was necessary to record a non-cash unrealized foreign exchange loss of $2.54 million during Q1-2020 which was mainly attributed to the current pandemic crisis and the extraordinary currency fluctuations that we witnessed, but as stated before, fiscal 2020 will be the major turning point for the Company.
We have also seen the recently announced news of the reclassification of the land zones of our Valtreixal property significantly add to the value of the project and now offers a clear road to finalise permits during this year. We expect that, as we start full construction at our Korean Sangdong project, the planning for the project build of Valtreixal will begin with the target of commencing construction as we finish construction in Korea. This further adds to our growth and our dominance as the premier non-Chinese producer. Finally, in regard to our Korean Sangdong project, we are now reviewing the definitive loan documents and have a clear path to complete all conditions precedent. We expect to have a good summer with the anticipated news flow.”
The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain.
The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate.
The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp.
Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain.
Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.
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Disclaimer for Forward-Looking Statements
Certain statements in this press release constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking
statements. Such statements relate to, among other things, the Company’s intention to purchase Shares pursuant to the NCIB, the Company’s belief that the Shares may from time to time be undervalued and that purchases of Shares under the NCIB will provide benefits to shareholders. These statements reflect the Company’s current views regarding future events and operating performance, are based on
information currently available to the Company, and speak only as of the date of this press release.
Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The
forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Company does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.