Athabasca Minerals based in Edmonton, Alberta, reported improved sales volumes and improved production costs for the thirteen months ended December 31, 2014
Highlights aggregate operations
- Revenue, net of royalties at Susan Lake, was $26.33 million for 2014 as compared to $25.36 million in 2013.
- EBITDA for 2014 (thirteen months) improved significantly as the year progressed due to improved sales volumes and improved production costs.
- Annual EBITDA of $3.5 million consisted of $5.1 million from June to December 2014 as compared to $(1.6) million from December 2013 to May 2014.
- A net loss of $0.83 million was recorded for the thirteen month period in 2014 as compared to a net profit of $1.92 million for the twelve month period in 2013.
- Developed two new aggregate operations at the Cowper and KM248 pits through agreements with DeneCo Aggregates Ltd., a First Nations company.
- Management entered into a Joint Venture Agreement with Wood Buffalo Metis Corporation to explore, develop, and produce aggregates for ten years.
Dom Kriangkum, chief executive, said; “We have recognized significant success through the implementation of a number of cost reduction opportunities in the extraction and processing of aggregates in 2014. Despite slow demand during the first two quarters, we supplied in excess of 8,000,000 tonnes of aggregates to regional customers, and built up significant inventory at our corporate owned aggregate operations to meet future demand.
“In addition to our aggregates business, we are extremely pleased with the positive results of the Preliminary Economic Assessment for the Firebag Project, and will continue development in 2015 targeting becoming a quality frac sand supplier to the oil and gas industry in Western Canada in 2016.”
Susan Lake sales volumes in 2014 of 7.5 million tonnes were 20% lower than 2013. Demand levels were impacted by poor weather in the first half of the year and the impact of dropping oil prices in the last quarter of the year. Management maintained operations at historical levels, while continuing to clear land and strip topsoil which should enable the Corporation to maximize sales volumes in future periods.
“Athabasca managed to increase aggregate sales volumes slightly from the corporate owned pits in 2014 to 571,000 tonnes. In the latter half of 2014, Athabasca management implemented several cost improvement strategies which enabled the Corporation to produce gravel at a lower operating cost.
“By optimizing production levels at the crusher, labour requirements were reduced and associated equipment hours were minimized reducing maintenance and operational costs to ensure a higher margin product going forward,” the company said in a statement.