TORONTO, ONTARIO--(Marketwire - April 25, 2012) -
(All dollar amounts are expressed in Canadian currency unless otherwise noted.)
PhosCan Chemical Corp. (TSX:FOS) today released its results for the year ended January 31, 2012.
PhosCan reported net income of $542,823 for the twelve months ended January 31, 2012 compared to a net loss of $221,220 for the previous fiscal year. The positive year-over-year result was due to decreases in administration and share-based payment expenses and increases in interest income and foreign exchange gain. For the three months ended January 31, 2012, the Company reported a net loss of $24,101 compared to net income of $136,979 for the same period of the previous year.
Cash and cash equivalents plus short-term investments were $64,238,595 at January 31, 2012 versus $67,904,058 at January 31, 2011. Working capital was $63,546,638 versus $67,890,731. The decreases were primarily a result of expenditures on the Martison Project and administration expenses, net of realized foreign exchange gains.
Capitalized expenditures on the Martison Project were $91,147,796 at January 31, 2012 as compared to $87,289,650 at January 31, 2011. The Company continues to advance the test program to find a process to profitably recover niobium and/or rare earths contained in the Martison Deposit. During the period January to March 2012, PhosCan conducted work at the Martison Deposit site. The Company constructed a temporary winter road to access the site and conducted hydrogeological testing and sonic drilling to collect samples for ongoing metallurgical testing. The budget for the work program is $4.5 million.
During the quarter, the Company announced a normal course issuer bid. Under the bid, the Company has repurchased and cancelled 3,984,000 of its common shares. The average price per share paid was $0.29, which represents a price discount to pro forma cash plus short-term investments per share of 24.8%. PhosCan may purchase up to 12 million of its common shares under the bid, which will remain open until October 17, 2012 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid.
For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the year ended January 31, 2012 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.
PhosCan currently has cash and cash equivalents, plus short term investments of approximately $62.1 million. The Company continues to monitor economic conditions for attractively priced acquisitions and investment opportunities that would be accretive to shareholder value.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of PhosCan, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of financial markets and commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on development projects, results of future metallurgical testing, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
PhosCan Chemical Corp.
President & CEO