Arianne Phosphate (TSXV:DAN) announced its financial results for the three and six month period ended June 30. The company also provided outlook for the remainder of 2015.
As quoted in the press release:
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q2 2015. In the second quarter ended June 30, 2015, the Company incurred a net loss of $2,029,395 for the six-month period ended June 30, 2015. This compares favourably to a net loss of $3,045,451 in the comparable period of 2014. The year-over-year decline in net loss was due to a series of measures that the Company undertook in order to reduce its expenses, as well as to focus primarily on permitting activities and financing alternatives, which require less working capital. The Company’s net loss and cash burn are consistent with other development stage mining companies.
- Continued its efforts to secure permitting for its Lac à Paul project. The Company worked closely with the Ministère du Développement durable, Environnement et Lutte contre les changements climatiques (MDDELCC), Bureau d’Audiences Publiques sur l’Environnment (BAPE) and local stakeholders, providing information, hosting public hearings and responding to inquiries about Lac à Paul’s economics and project viability. Arianne anticipates receiving an operating permit in the last quarter of 2015.
- Signed a cooperation agreement with Innu First Nations from Pessamit, Essipit and Mashteuiatsh in support of Lac à Paul’s development. Arianne and the three Innu First Nations are currently collaborating on the specifics to be included in the Impact and Benefit Agreements.
- Reduced expected production costs (OPEX) for its premium quality phosphate concentrate by US$8 per ton to approximatelyUS$79 per ton freight on board (FOB) Port of Saguenay.
- Appointed James Cowley as interim Chief Financial Officer for the Company. Mr. Cowley, a metallurgical engineer with an MBA in Finance, is a director of the Company and a member of its audit Committee. Mr. Cowley had previously served as President of Arianne from August of 2011 until August of 2014.
- Shareholders re-elected Messrs. Pierre Fitzgibbon, Dominique Bouchard, James Cowley, David DeBiasio, Marco Gagnon, Brian Ostroff, Siva Pillay, and Steven Pinney as Directors of the Company’s Board.
Jean-Sébastien David, COO of Arianne Phosphate, commented:
The second quarter was yet again another exciting and productive quarter for Arianne. Although many segments of the resource sector were adversely affected by sharply lower commodity prices, the fertilizer sector provided some relative stability and Arianne was able to make significant progress towards its key milestones. Arianne continued to work closely with government officials and agencies, as well as local stakeholders, to complete the formal public hearing process aimed at securing permitting for Lac à Paul. Our work with local stakeholders also led to the signing of a collaboration agreement with the three Innu First Nations. Operationally, our ongoing efforts to reduce our project’s expected operating costs, led to an additional 10% savings, or an anticipated cost of US$79 per ton. Combined, these initiatives demonstrate both our commitment to advancing development of Lac à Paul, as well as to the overwhelming support we have received for the Project’s build-out. With permitting for our project expected relatively soon, we are very well positioned to capitalize on the growing demand for a secure and stable phosphate supply.
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