TORONTO, ONTARIO--(Marketwired - Sep 11, 2015) -
(Expressed in Canadian Dollars)
PhosCan Chemical Corp. (FOS.TO) ("PhosCan" or the "Company") today released its quarterly results for the period ended July 31, 2015.
PhosCan reported a net loss of $312 thousand for the three months ended July 31, 2015 compared to a net loss of $164 thousand for the same period of the previous fiscal year. During the six months ended July 31, 2015 the Company reported a net loss of $979 thousand compared to a net loss of $336 thousand in the same period last year. Professional and legal fees were significantly higher to support increased business development activities. As well directors' fees were higher for fees paid to members of a Special Committee of independent directors established to supervise and engage in a strategic review process with a view to enhancing shareholder value. Interest income was down due to lower interest rates and investment balances. On the plus side salaries were lower in the three and six month periods. The remaining expenses were generally in line with prior year periods.
Cash, cash equivalents, short-term investments and marketable securities were $53.9 million at July 31, 2015 versus $55.0 million at January 31, 2015 and working capital was $53.8 million versus $54.9 million. The decrease in working capital was primarily due to administration expenses of $1,140 thousand, the repurchase of common shares of $273 thousand, and expenditures on the Martison Project of $87 thousand, net of interest income of $335 thousand and net realized and unrealized gains on marketable securities of $47 thousand.
For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the quarter ended July 31, 2015 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.
The Company has today filed a supplement to its most recent Management Information Circular to provide additional corporate governance information. The supplement discloses that none of the Company's current directors or executive officers are women. As previously announced, the Company has initiated a strategic review process with a view to enhancing shareholder value, and has established a Special Committee to supervise such process. The Special Committee is actively engaged in the strategic review. Since the strategic review could result in a transaction or restructuring which materially affects the composition of the Corporation's Board and management, the Board has deferred adoption of new corporate governance policies and practices until the strategic review process is complete. Specifically, the Company has deferred adopting (i) a written policy relating to the identification and nomination of women directors, (ii) a target regarding the representation of women on the Board or executive officer positions of the Corporation, or (iii) a policy with respect to the consideration of the representation of women in executive officer positions when making executive officer appointments. It is expected that these matters will be addressed following completion of the strategic review process currently underway. A copy of the supplement is available under the Company's profile at www.sedar.com.
About PhosCan
PhosCan owns a 100% interest in the Martison Project and currently has cash, cash equivalents, short term investments and marketable securities of approximately $53.8 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.