EDMONTON, ALBERTA -- (Marketwired) -- 04/30/13 -- Athabasca Minerals Inc. (the "Corporation" or "Athabasca") (TSX VENTURE: ABM) is pleased to announce the filing of its Q1 financial results for the three months ended February 28, 2013. Athabasca reports the following highlights from Q1 2013:
-- Record revenues in the amount of $6,683,396 compared with $3,629,619 during Q1 2012, an increase of 84.1%;-- Record net aggregate sales from corporate-owned operations in the amount of $5,194,379 compared with $1,607,110 during Q1 2012, an increase of 223.2%;-- More than 25% of a 375,000 tonne contract fulfilled from the Logan aggregate operation;-- Continued progress on developing its frac sand project area and progress with Alberta Government regarding permitting.
The Corporation continues to transition from primarily performing aggregate management services to increasing its aggregate supply and services provided from corporate-owned aggregate operations. Q1 2013 generated the highest single quarter revenues in the Corporation's history, as Athabasca continues to grow its business at corporate-owned operations. During this transition, the Corporation experienced seasonal challenges related to aggregate delivery. The Corporation has identified and addressed these issues and plans to continue to expand corporate owned aggregate operations at new locations in addition to the existing Logan, Kearl and House River aggregate operations.
Challenges encountered during the quarter resulted in the Corporation incurring a net loss of $374,582 during Q1 2013. The loss was a result of reduced aggregate management fees, increased aggregate operating expenses, and increased non-cash expenses, including share-based compensation, depreciation, amortization and depletion. Also included is a $284,274 valuation write down of Athabasca's land use agreement held with a work camp provider.
At the Logan aggregate operation, approximately 90,000 tonnes of high quality aggregates is to be delivered to the customer during Q2. An additional 188,000 tonnes of aggregates have been processed and stockpiled and will be delivered during fall / winter 2013. Additional contracts for Logan aggregates will be pursued, with potential delivery when seasonal conditions allow for production and delivery.
At the Kearl aggregate operation, all Q4 2012 inventory gravel production was sold in Q1, in addition to some sand sales. Crushing activity at Kearl recommenced early in Q2 2013, with steady demand for Kearl crushed gravel exceeding the current level of production.
The loss on the land use agreement takes into consideration a reduction during the Corporation's first quarter in the level of monthly occupancy at the lodges, and which is also anticipated to prevail in the near term. The work camp provider has announced that it sees opportunities to remarket or reposition these beds, as activity in the region from other operators remains strong. In the future, the Corporation may write down or increase the carrying value of its land use agreement, as is required under International Financial Reporting Standards, which will consider actual and projected accommodation occupancy.