VANCOUVER, March 21, 2012 /PRNewswire/ - Polaris Minerals Corporation (TSX: PLS) today reported financial results for the year ended December 31, 2011, in accordance with International Financial Reporting Standards (IFRS). All financial results are in US dollars unless otherwise noted.
Revenue in 2011 was $23.4 million an increase of 30% over the $18.0 million recorded in the prior year. This was generated on sales of 1.73 million tons of sand and gravel compared with 1.28 million tons sold in 2010, an increase of 35%. Sales in the fourth quarter of 2011 were 506,000 tons, more than double the 178,000 tons sold in the fourth quarter last year. Sales during the first quarter of 2012, the winter quarter, are significantly higher than in the same period last year.
The net loss attributable to shareholders for the year was $17.8 million ($0.33 loss per share) compared with a net loss of $13.1 million ($0.25 loss per share) for the year ending December 31, 2010. A revised fair value estimate of the Company's jointly-owned freehold land in the Port of Long Beach resulted in a loss of $2.1 million being recognized compared to the profit of $2.1 million recognized in the previous year, thus representing a difference in net losses of $0.08 per share between the two years. The net loss recorded in 2011 was also impacted by a non-recurring loss of $2.2 million ($0.04 loss per share) arising from the sale of two non-core assets with the cash proceeds being used for working capital. At the year end cash on hand was $1.63 million.
Herb Wilson, President and CEO, said: "The strong increase in sales reported for 2011 commenced in the second half of the year, gained momentum during the fourth quarter and is continuing into 2012 with increased demand from both the public and private sectors and the realization of an average selling price increase. Management believes that the first half of 2011 represented the bottom of this severe recessionary cycle and is now looking forward to a period of recovery during which selling prices are expected to strengthen. We expect to meet contracted shipping volumes in 2012 and therefore avoid penalty payments that have affected previous years". He added, "We are benefitting from an increased level of construction activity in our major market around San Francisco Bay, including the commencement of supplies to three additional ready mixed concrete manufacturers. At the national level, we await the adoption of a surface transportation reauthorization bill, either in the form of the Senate-passed, two-year, $109 billion bill, or the 5-year extension drafted by the chairman of the House Transportation & Infrastructure Committee. The eventual passing of a definitive bill, coupled with the prospect of an improving house building sector, should stimulate industry recovery".
This financial summary should be read in conjunction with the Company's December 31, 2011 Consolidated Financial Statements and Management's Discussion and Analysis, both of which are available on www.sedar.com.
The Company will host a conference call on Thursday, March 22, 2012 at 8:00 am Pacific Daylight Time. Details to access the call live are as follows:
- Via telephone by calling 888-231-8191 in North America or 647-427-7450 internationally
- Via webcast at: http://www.newswire.ca/en/webcast/detail/940769/1006789
The webcast will be archived for 90 days following the call at the above noted link. The conference call will also be recorded and available for replay at 11:00 am PDT and will be available until April 5, 2012. To access the replay, dial 1-855-859-2056 or 416-849-0833 and use access code 64647681 to hear the recording.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transportation to urban markets on the west coast of North America to meet local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver, BC and Hawaii.
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things the future financial or operating performance of the Company, costs and timing of the development of the construction aggregate quarry, the timing and amount of estimated future production, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties" in the Company's Annual Reports and under the heading "Risk Factors" in the Company's Annual Information Forms (AIF) both of which are filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
SOURCE Polaris Minerals Corporation