WATERDOWN, ONTARIO--(Marketwired - May 13, 2015) - Opta Minerals Inc. (News - Market indicators) today announced results for the three months ended March 31, 2015. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.

Operational and Financial Highlights:

• First quarter revenue in the Steel and Magnesium segment decreased 7.0% from 2014. The Steel and Magnesium segment has primarily been impacted by a slow down in the steel industry in the U.S. and strengthening US exchange rates against the EUR and CAD, affecting non-U.S. based business results converted to U.S. dollars. The Industrial Minerals segment decreased 24.3% over 2014. The decrease in the quarter was primarily due to harsh weather throughout North America, competitive pressure, and exchange and industry conditions similar to the Steel segment. The Company is focused on cost reduction to realign to a lower revenue base.
  
  
• Gross profit decreased quarter over quarter due to lower volumes and reduced gross profit margins of 12.7% compared to 14.2% in 2014. Gross profit margins have declined primarily from reduced facility utilization.
  
  
• Selling, general and administrative expenses (SGA) were $3,286 or 11.2% as a percent of revenues, compared to $4,357 or 12.6% of revenues in the prior year quarter. Reduced SGA is a function of cost reductions including headcount reductions already completed in Q4 2014 and the early part of 2015, as well as the strengthening US dollar and its impact on corporate costs which are primarily in Canadian dollars. The Company is targeting 10% SGA as a percent of revenues.
  
  
• Results include non-cash foreign exchange losses of $782 in the current quarter compared to foreign exchange gains of $251 in the prior year comparative quarter. This was driven by the strength of the US dollar against both the Canadian dollar and Euro.
  
  
• Working capital at March 31, 2015 amounted to $20.3 million and total assets were $110.4 million, as compared to $21.8 million and $117.7 million, respectively, at December 31, 2014. While overall working capital is approximately the same as at December 31, 2014, the current quarter ended March 31, 2015 reflects lower accounts receivable as a result of lower revenues.
  
  
• The debt to equity ratio at March 31, 2015 was 0.99 to 1.00, and at December 31, 2014 was 1.00 to 1.00.
  
  

David Kruse, President and CEO of Opta Minerals, noted, "Since the fall of 2014 we have been engaged in cost reductions including headcount in order to streamline the business and improve results. Unfortunately, the steel industry after a good fourth quarter in 2014 has softened considerably due to the cascading effect of lower oil prices. We have felt this impact, combined with exchange rate movements when we consolidate our results and the very cold winter and its impact on our Infrastructure business. We believe the steel industry will improve in the back half of 2015 and we have not lost any significant customers through this downturn. Our priorities are to continue to reduce costs, simplify the business and improve cash flow through working capital management. We are also working on a number of revenue growth opportunities in the steel segment of our business."

Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France, Slovakia and Germany. Opta has one of the broadest product lines in the industry.

FOOTNOTES:

Earnings before income taxes and interest ("EBIT"); and earnings before interest, income taxes, depreciation and amortization ("EBITDA") as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.

FORWARD-LOOKING STATEMENTS:

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to the Company's targets with respect to SGA as a percent of revenues, anticipated improvements in the steel industry in the second half of 2015, the Company's intention to focus on reducing costs, simplifying the business and improving cash flows and potential revenue growth opportunities, as well as other statements which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: the impact of general economic conditions; the impact of specific industry conditions; the inability of the Company to successfully integrate recently acquired businesses or to achieve the anticipated benefits from such acquisitions; the risk of unexpected costs or liabilities relating to acquisitions; currency fluctuations and exchange rate risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; mining risks; and the other risks identified in the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward- looking statements, whether as a result of new information, future events or otherwise.