Great Western Minerals Group (CVE:GWG) (OTCQX:GWMGF) announced late Wednesday first quarter results, with financial performance exceeding that of the prior year period.
For the quarter that ended March 31, the integrated rare earths
company posted revenues of $4.47 million, compared to $4.23 million for
the previous year period.
Great Western Minerals Group
(GWMG) combines upstream resource exploration and extraction at its
Steenkampskraal mine in South Africa with downstream metals processing
facilities in the US and UK. Its specialty alloys are used in the
battery, magnet and aerospace industries.
"The financial performance of GWMG overall, and the performance of
Less Common Metals in particular, has once again surpassed that of the
same period of the prior year," said president and CEO Jim Engdahl.
"Increased LCM revenues are indicative of its strong market position.
The continual increase in LCM's gross margin, EBITDA [earnings before
interest, taxes, depreciation, and amortization] and earnings are
indicative of a continual focus on productivity.
"These operating results position GWMG very well as the company continues down the path of full integration."
GWMG posted gross margins of $1.79 million, up from $1.29 million in the same quarter of 2011.
The company reported a narrower loss of $3.05 million, or $0.007 per
share, smaller than the loss in the same quarter of 2011 of $4.85
million, or $0.014 per share.
Manufacturing revenues from the company's processing facilities, Less
Common Metals Limited (LCM) and Great Western Technologies, represent a
5.7 per cent increase over the first quarter of 2011.
Gross margins on manufacturing operations represent a 38.2 per cent increase over the same period of 2011.
company’s development program at Steenkampskraal is central to ensure a
strong flow of feedstock for its downstream processing. GWMG intends to
be one of the first to produce significant quantities of the more
valuable heavy rare earth oxides, which are important materials for
The rare earth company, which eventually plans to be its own supplier
as well as creating a supply certainty for global customers, has
several operational targets this year, including the refurbishment of
the mine shaft at Steenkampskraal in the first half of this year.
Great Western is on track for this target, as well as for the launch
of mining activities by the end of 2012, and the construction of a mixed
chloride plant and separation plant near Steenkampsraal in the first
half of 2013.
Gross margins for LCM’s first quarter increased 34.4 per cent to
$1.89 million, compared to $1.41 million in the first quarter of 2011.
EBITDA for the first quarter at LCM increased 41.5 per cent to $871,926, compared to $616,198 a year earlier.
Revenues for LCM were “significantly over budget”, at $4.29 million, versus $4.07 million in the same quarter of 2011.
At its LCM processing operation in the UK, the company completed the
first pour with its new strip casting furnace at the end of January, and
in late March, the company placed an order for a second strip cast
furnace, allowing alloy manufacturing capacity to double when the second
furnace arrives and is commissioned later this year.
The second strip cast furnace will increase the total production
capacity of LCM to approximately 2,000 tonnes per annum of rare earth
alloys. The company is boosting capacity in preparation for its rare
earth production coming online, and as demand for the metals grows.
The company’s shares were up 1.27 per cent Thursday, trading at $0.40.