Titanium Corporation Reports Fiscal Year 2014 First Quarter and Operational Update
25 January 2014 - 12:30AM
Marketwired
Titanium Corporation Reports Fiscal Year 2014 First Quarter and
Operational Update
CALGARY, ALBERTA--(Marketwired - Jan 24, 2014) - Titanium
Corporation Inc. (the "Company" or "Titanium") (TSX-VENTURE:TIC)
today released its results for the first quarter ended November 30,
2013.
"Having largely
completed our R&D and pilot projects in 2013, we are now
exclusively focused on commercializing Titanium's CVW™ technology,"
commented Scott Nelson, Titanium's President and Chief Executive
Officer. "We are meeting regularly with the industry and other
stakeholders to encourage adoption and development of a commercial
project and we remain confident of eventual success. The fact that
CVW™ offers an attractive environmental and economic solution for
froth treatment tailings is clear, and we are now working on
refining the financial and business models that will work for our
potential oil sands company partners."
The following are
highlights for the three month period ended November 30, 2013:
- During the first fiscal quarter of 2014, Titanium provided
project proposals and technical information to oil sands operators
specific to their sites. The Company has proposed flexible business
structures which allow for the licensing of CVW™ technology to
operators who wish to build and operate the on-site facilities
themselves. Alternatively, the Company is prepared to participate
in building and operating facilities together with partners. The
timing for decisions around technology adoption and the preferred
business structures are at the discretion of the oil sands
operators.
- In the course of site specific proposals, the Company has been
gaining valuable insight and feedback from oil sands operators on
their priorities for tailings recoveries. The Company has developed
an enhanced opportunity to stage technology implementation starting
with bitumen and solvent recovery, to reduce capital and operating
costs, and reduce implementation risks, increase economic returns
and deliver environmental benefits as early as possible.
- The Company has engaged outside experts to review and report on
potential environmental performance improvements resulting from the
implementation of CVW™ technology. These very positive results have
been provided to stakeholders including government ministries,
funding agencies and the oil sands industry. The principal
environmental benefit opportunities of implementing the Company's
technology are: a 70% or more reduction of VOC emissions through
the recovery of solvents prior to discharge to tailings ponds and
the atmosphere; a minimum 5% reduction of site-wide GHG emissions
and a 20% or more reduction of river water consumption.
- The final technical program underway is the processing in
Australia of the heavy mineral concentrate bulk sample produced
during the 2013 demonstration pilot at CanmetENERGY. The objective
of the program is to conduct higher volume testing and optimization
of mineral concentration and separation flow-sheet circuits. During
the quarter, Company management conducted an on-site review of
progress at the engineering firm's facility in Brisbane. Results to
date are well in line with program targets, with testing of wet
circuits substantially complete and dry circuit testing scheduled
for completion in the second quarter.
- In addition to measures taken to reduce costs and conserve
cash, which have included staff reductions, decommissioning of
pilot and laboratory facilities, and surplus equipment disposals,
the Company's management and directors have proposed to receive a
portion of their cash compensation in the form of new share-based
instruments which were adopted by the Company during the quarter
and announced in December 2013.
FINANCIAL
OVERVIEW
As a research and
development company, Titanium is focused on achieving long-term
financial success by taking its innovative technologies into
commercial production. Until commercial investment is made and a
plant is built and operating, the Company expects to incur losses.
However, with pilot testing completed, R&D investment in future
quarters will be substantially reduced as the Company focuses its
resources on commercialization.
Net Loss - Net loss
of $0.8 million for the three month period ended November 30, 2013
decreased by $0.5 million from $1.3 million in the comparative
three month period ended November 30, 2012 due to the completion of
the HMC bulk minerals processing and paraffinic tailings pilots at
CanmetENERGY's research facility in the prior fiscal year. With the
completion of pilot testing and as a development stage company,
Titanium's net loss for the period is in line with
expectations.
Research &
Development ("R&D") - For the three month period ended November
30, 2013 R&D spending before government grant recovery was $0.3
million as compared to $1.6 million for the three months ended
November 30, 2012. R&D expense was lower in the current quarter
compared to the same three month period in fiscal 2012 due to
reduced labour and operating costs of the pilot, which was
concluded in May of 2013. Current R&D expenditures related to
the final phases of the minerals testing program will be completed
in the second quarter of fiscal 2014.
General &
Administrative ("G&A") - G&A expense was consistent for the
three month period ended November 30, 2013 and November 30, 2012 at
$0.5 million. As the company focused on cash conservation, G&A
cash costs (excluding deferred and stock-based compensation) were
reduced by $0.1 million for the three month period ended November
30, 2013 to $0.4 million as compared to $0.5 million for the three
month period ended November 30, 2012.
Cash Position - The
Company had $3.7 million in cash at November 30, 2013, compared to
$4.1 million at August 31, 2013; the reduction in cash was due to
ongoing operational expenses incurred in the quarter. The Company
has sufficient cash and accounts receivable related to grant
funding, to fund its R&D and G&A costs for a period in
excess of 12 months. As the Company focuses on commercialization of
its technology, any discretionary R&D and engineering projects
would be pursued in conjunction with grant funding or partner
support.
To view the
Company's management discussion and analysis and unaudited
condensed interim financial statements for the three month period
ended November 30, 2013, please visit our website at
www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation
Inc.
Titanium
Corporation Inc. has developed innovative technologies to recover
bitumen, solvent, valuable heavy minerals and water from oil sands
waste tailings. The benefits are twofold: the recovered bitumen,
solvent and minerals will have economic value; and green benefits
that will significantly reduce environmental impacts of the oil
sands industry. The Company's shares trade on the TSX-V under the
symbol "TIC". For more information visit the Company's website at
www.titaniumcorporation.com.
Disclosure regarding forward-looking
statements
Certain
statements contained herein regarding the Company and its plans
constitute "forward-looking statements" within the meaning of
Canadian securities laws. By their nature, forward-looking
statements require the Company to make assumptions and are subject
to inherent risks and uncertainties. There is a significant risk
that predictions, forecasts, conclusions, projections, and other
forward-looking statements will not prove to be accurate. We direct
you to our statement of risks and uncertainties more particularly
described and updated in the Company's management discussion and
analysis filed for the period ended November 30, 2013 and annual
information form for the year ended August 31, 2013 each filed on
SEDAR (www.sedar.com). Most notably these risks include, but are
not limited to risks associated with the commercialization of the
CVW™ project on the timetable anticipated or at all; access to
capital on acceptable terms to fund our commercialization plan,
operational or technical difficulties in connection with building
and operating the CVW™ project and research activities; uncertainty
related to the cost to build and operate CVW™ facilities; reliance
on a small number of people, access to and cost of oil sands
tailings necessary to carry out the CVW™ project, competition and
intellectual property protection and changes to environmental laws
and regulation.
Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
Titanium Corporation Inc.Scott NelsonPresident & CEO(403)
561-0439snelson@titaniumcorporation.comTitanium Corporation
Inc.Andreas CurkovicInvestor Relations(416)
577-9927acurkovic@titaniumcorporation.comwww.TitaniumCorporation.com
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