Mineral Commodities Ltd
ABN 39 008 478 653
40 Murray Road North
Welshpool WA 6106, Australia
PO Box 235, Welshpool DC WA 6986, Australia
Telephone: 61 8 6253 1100
Facsimile: 61 8 9258 3601
Email: [email protected]
Web: www.mncom.com.au
31 March 2015
Australian Stock Exchange
Company Announcements Office
MRC FULL YEAR FINANCIAL STATEMENTS REPORTS A MAIDEN PROFIT AFTER INCOME TAX BENEFIT OF US$8.4M
Mineral Commodities Ltd ("MRC" or the "Company") is pleased to present its financial report for the year ended 31 December 2014. The Tormin Mineral Sands Project ("Tormin" or the "Tormin Project") was successfully commissioned in January 2014 and has completed its first 12 months of operations which have proven to be a success both in operating and financial performance, underpinning a Group profit after income tax benefit of US$8.4 million.
Group profit before income tax benefit for the period was US$4.0 million with cash on hand as at 31
December 2014 of US$4.2 million after allowing for debt repayments throughout the year.
Given the commencement of production and the positive cash flows forecast, a deferred tax asset has been brought to account as at 31 December 2014, totalling $4.0m.
Executive Chairman and CEO, Mr Mark Caruso, stated: "On behalf of the Board I would like to thank all the dedicated team on site and at the Company's respective offices for their efforts and dedication throughout the year. The company is very proud of its achievements. It has not only delivered the project on time and on budget but has successfully commissioned and made the transition to a fully operational Mine underpinned by strong key production metrics in Mining and Processing, and with solid financial performance on the backdrop of a challenging market."
The following key operating and financial metrics produced the Company's maiden profit:
Production - Full Year
Mining: 1,075,408 tonnes mined at a grade of 53.83% Heavy Mineral consisting 31.16% garnet, 17.26%
ilmenite, 4.76% zircon and 0.65% rutile.
Production & Processing: 556,105 tonnes processed through the Secondary Concentrator Plant ("SCP")
to produce:
• 254,816 tonnes garnet concentrate
• 100,437 tonnes ilmenite concentrate
• 42,668 tonnes zircon/rutile concentrates
Sales - Full Year: $33.3m
Zircon/Rutile concentrate: 42,042 wet metric tonnes Ilmenite concentrate: 21,920 wet metric tonnes Garnet concentrate: 79,630 wet metric tonnes
Corporate and Cash
Cash: Cash balance of $4.2m as at 31 December 2014, plus $3.1m in trade and other receivables.
Debt: $2.0m Wogen Pre-Financing Facility repaid to a balance of $0.6m as at 31 December 2014. Repaid in full on 2 March 2015. $3.0m Working Capital Facility fully drawn.
Mr Caruso also stated; "The Company is extremely proud of its safety record that by period end amounted to in excess of 758,000 man hours without a lost time injury (LTI) since October 2013.
The Company is well placed with a world-class deposit in Tormin to take advantage of any incremental increase in zircon pricing and has significant upside in the sale of ilmenite concentrate.
This combined with the planned processing plant upgrades, the Company is anticipating significant growth in both sales revenue and production in 2015."
For enquiries regarding this report please contact:
Mark Caruso - Executive Chairman & CEO +61 8 6253 1100
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