Polaris Reports Third Quarter Results and Conference Call
November 14, 2007
VANCOUVER, British Columbia – Polaris Minerals Corporation (TSX:PLS) today reported financial results for the third quarter ended September 30, 2007. All financial results are in US dollars, unless otherwise noted.
Polaris’ sales for the third quarter ending September 30, 2007 were $5.5 million. During the corresponding period in 2006, the principal assets were under construction and, therefore, the Company had no operating revenues in the period. A loss of $1.9 million ($0.05 per share) was incurred for the quarter ended September 30, 2007, compared to a loss of $7,448 ($0.00 per share) for the period ended September 30, 2006.
As of September 30, 2007, the Company had working capital of $21.3 million, including cash of $18.8 million, compared to working capital of $32.6 million and cash of $42.4 million for the quarter ended December 30, 2006.
During the quarter ended September 30, 2007, the Company capitalized $8.8 million to property, plant and equipment, compared with $17.8 million in the corresponding period ended September 30, 2006.
This financial summary should be read in conjunction with the Company’s September 30, 2007 unaudited consolidated financial statements and Management’s Discussion and Analysis, both of which will be available on www.sedar.com.
Marco Romero, Polaris President and CEO, said: “The Company’s financial results for the third quarter were in line with our expectations for the current level of production during this ramp-up period. Distribution costs were higher than anticipated, reflecting minor delays in securing terminal capacity and the resulting need to lightly load two vessels in order to maintain supplies to a San Francisco Bay customer. The high quality of the sand and gravel from the Orca Quarry is well recognized by our customers and has led to sales of 488,414 tons during this quarter. A large proportion of our sales into California are now going into private commercial and infrastructure projects, reflecting the current reduction in private house building and the corresponding increase in infrastructure spending.”
Mr. Romero continued, “We are very pleased with the recently announced Strategic Alliance with Cemex, through which we have become their exclusive supplier of imported aggregates in Washington, Oregon and California. As a result of the Cemex agreement, our existing agreement with Shamrock, and the construction of our new Richmond Terminal, we have so far secured exclusive access to four terminals in San Francisco Bay, with more expected to come on stream in the next year or two. In collaboration with Cemex, we have accelerated new terminal development initiatives in Southern California and are following up on a number of promising opportunities. Sales continue to pick up pace and we are on-track to exceed our original sales target of 1.54 million tons in the first full year of production. We anticipate that in the coming quarters our costs per ton will continue to decrease to the benefit of margins, as sales volumes increase and greater logistical flexibility and further economies of scale are achieved.”
Third Quarter Highlights
The most significant event during the third quarter was the announcement that Polaris and Cemex had entered into a long-term Strategic Alliance in California, Oregon and Washington. For this three State area, the parties have agreed that Polaris will be the exclusive supplier to Cemex of marine transported construction aggregates internal use by Cemex and for sales by Cemex to third party customers, and that Cemex will be the exclusive marketer for Polaris. Polaris has already initiated sand and gravel shipments from the Orca Quarry to the two existing Cemex terminals in San Francisco Bay. In addition, the two companies have entered into an agreement to pursue the development of future construction aggregates import terminals in California, Oregon and Washington and to pursue markets for the products of the proposed Eagle Rock Quarry.
The first shipment of sand and gravel from the Orca Quarry was unloaded at the Richmond Terminal in San Francisco Bay on October 9, 2007. Commissioning of the truck load-out facility has now been successfully completed, thus opening up a further strategic gateway into the San Francisco Bay market.
A third tractor scraper has been ordered from Caterpillar for the Orca Quarry for delivery in the spring of 2008, which will enable the Orca Quarry to continue ramping up production.
Photographs of the Richmond Terminal and of recent aggregate deliveries to Hawaii from the Orca Quarry can be seen on Polaris website. Please visit http://www.polarmin.com/projects/photogallery.php to view these photographs.
The Company will host a conference call at 8:00 am PT on Thursday, November 15, 2007. Investors and other interested parties may access the teleconference live by calling 800-590-1508 or 416-644-3427 in North America or internationally and 00 800 2288 3501 from the United Kingdom.
A live webcast of the conference call will be available through the link below: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2082300
The webcast will be archived for 90 days following the call.
The conference call will be recorded and available for replay at 10:00 am PT and will be available until Friday, November 30, 2007. In North America dial 877-289-8525, and for international calls, dial 1-416-640-1917. The access code to hear the recording is 21252629#.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the west coast of North America to meet growing local supply deficits.
For further information, please contact:
Marco Romero, President & CEO or
Mike Westerlund, Director, Corporate Development
Polaris Minerals Corporation
Tel: (604) 915-5000
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 Report and under the heading “Risk Factors” in the Company’s Annual Information Form (AIF) in respect of its financial year-ended December 31, 2006, 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.