Polaris Reports First Quarter Results and Conference Call
May 16, 2007
VANCOUVER, British Columbia – Polaris Minerals Corporation (TSX:PLS) today reported financial results for the first quarter ended March 31, 2007. All financial results are in US dollars, unless otherwise noted.
Effective January 1, 2007, the Company changed its reporting currency to the US dollar (USD). The change in reporting currency is to better reflect the Company’s principal operating currency, as Polaris incurs the majority of its operating revenues and costs in USD. Prior to January 1, 2007, the Company reported its annual and quarterly consolidated financial statements in Canadian dollars. All comparative figures have been restated into USD.
As of March 31, 2007, the Company had working capital of $44.0 million, including cash of $76.0 million, compared to working capital of $32.6 million and cash of $42.4 million for the quarter ended March 31, 2006.
Polaris’ operating revenues for the first quarter ending March 31, 2007 were $49,751. 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 $4.3 million ($0.14 per share) was incurred for the quarter ended March 31, 2007, compared to a loss of $1.9 million ($0.07 per share) for the period ended March 31, 2006.
During the quarter ended March 31, 2007, the Company capitalized $6.0 million to property, plant and equipment, compared with $7.1 million in the corresponding period ended March 31, 2006.
This financial summary should be read in conjunction with the Company’s March 31, 2007 unaudited consolidated financial statements and Management’s Discussion and Analysis, both of which will be available on www.sedar.com.
First Quarter Highlights
The Company began production at the Orca Quarry on February 20, 2007, paving the way for the first barge shipments to the Vancouver area on March 22, 2007 and the first Panamax freighter shipment to California on April 1, 2007.
Construction at the Richmond Terminal is proceeding well and is anticipated to be completed around the end of the third quarter, 2007. The Mitigated Negative Declaration application for the proposed Redwood City Terminal received unanimous support from the Redwood City Port Commissioners, a significant step forward in the permitting process.
On March 5, 2007, Polaris received the 2007 e3 Environmental Excellence in Exploration Award from the Prospectors and Developers Association of Canada for industry-leading social and environmental sustainability practices. Additionally, on April 16, 2007, Polaris’ subsidiary Company, Orca Sand and Gravel Ltd., received the Stewart O’Brian Safety Award for its exemplary safety record from the Government of British Columbia. The Orca Quarry had zero lost-time accidents in 2006 during its construction while accumulating more than 100,000 worker hours.
Images of the Orca Quarry, the loading of barges and Panamax freighters, as well as construction progress at the Richmond Terminal, can be viewed at the link below:
The Company will host a conference call at 8:00 am PT on Tuesday, May 29, 2007. Investors and other interested parties may access the teleconference live by calling 800-732-9303 or 416- 644-3417 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 1:00 pm PT and will be available until June 5, 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 21231740#.
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.