Polaris Reports Second Quarter Results and Conference Call
August 15, 2007
VANCOUVER, British Columbia – Polaris Minerals Corporation (TSX:PLS) today reported financial results for the second quarter ended June 30, 2007. All financial results are in US dollars, unless otherwise noted.
Polaris’ sales for the second quarter ending June 30, 2007 were $4.4 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 $1.2 million ($0.03 per share) was incurred for the quarter ended June 30, 2007, compared to a loss of $0.1 million ($0.00 per share) for the period ended June 30, 2006.
As of June 30, 2007, the Company had working capital of $31.8 million, including cash of $29.8 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 June 30, 2007, the Company capitalized $9.3 million to property, plant and equipment, compared with $11.1 million in the corresponding period ended June 30, 2006.
This financial summary should be read in conjunction with the Company’s June 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: “We are pleased with the Company’s financial results in the second quarter. Operating costs at the Orca Quarry are in line with expectations for the ramp-up period and the current level of production. We expect the gross margin to strengthen in the coming quarters, as increasing sales and production enable the amortization of fixed costs to be spread over greater tonnage. We have sufficient capital resources to implement our short and medium term business objectives, and do not anticipate needing any debt or equity financing to achieve positive cash flow. We remain on track to meet or exceed our sales target of 1.54 million tons in our first 12 months of operation. It has been particularly gratifying to actually see our aggregates converted by our customers into buildings and infrastructure elements.”
Second Quarter Highlights
During the second quarter of 2007 the Company established regular barge shipments of sand and gravel into the Lower Mainland of British Columbia and into San Francisco Bay by self-unloading Panamax vessels. One shipment of material was also sent to Hawaii. The Orca Quarry continues to operate as expected, producing a high quality sand and gravel.
Photographs of concrete structures using sand and gravel produced at the Orca Quarry can be viewed on Polaris’ website. Please visit: http://www.polarmin.com/orcasand/photogallery.php to view these photographs. These images include the Legacy 1 and 2 high-rise tower project in Burnaby, British Columbia; a highway interchange on Highway 101 in San Rafael, California; a major wastewater treatment plant in Petaluma, California and the Green Music Center at the Sonoma State University, California.
Construction of the Richmond Terminal is proceeding in accordance with expectations and it is anticipated to commence operation early in the fourth quarter of 2007.
The Company will host a conference call at 8:00 am PT on Friday, August 17, 2007. Investors and other interested parties may access the teleconference live by calling 800-595-8550 or 416-644-3420 in North America or internationally and 00 800 0000 2288 from the United Kingdom.
A live webcast of the conference call will be available through the link below:
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 August 31, 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 21242391#.
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.