Orbite Announces First Quarter 2014 Results and updates Construction of HPA Facility

Orbite Aluminae Inc. announced today the filing of its first quarter financial results ended March 31, 2014 and provided an update on the construction of its HPA facility.

First Quarter Highlights

(All dollar amounts are in Canadian dollars unless stated otherwise.)
• Advanced its high purity alumina (“HPA”) project development with its partners for detailed engineering, project management, procurement, as well as ordered the calcination system for the production of HPA.
• Received a $3.8 million non-interest bearing repayable financial contribution from Canada Economic Development.
• Announced that the Government of Québec formally approved a $10 million equity investment in Orbite. The finalization of the equity investment by the Government of Québec continues to proceed as planned.
• Issued series X and Y subscription rights, requiring the institutional investor to purchase up to $40 million of the Corporation’s debentures. Orbite has chosen to defer the 10M$ investment under the series X subscription rights. Initially contemplated for May 15th, 2014, the Company anticipates to effect closing no later than mid-July 2014. Upon shareholder approval, the investor will be required to invest a further $30 million of debentures of the Corporation under the series Y subscription rights following completion of the series X investment.
• Continued to control its costs and operate within budget estimates.
• Cash and Short-Term Investments of $5.3 million as at March 31, 2014. Positive Working Capital of $5.3 million.
• Non-current Investment tax credits receivable of $27.3 million.
• Property, Plant and Equipment of $66.9 million.
• Quarterly Net loss and Comprehensive loss of $4.4 million or $0.02 per share, up by $3.9 million compared to Q1-2013, and down by $4.6 million, or 51%, compared to Q4-2013.
• Cash flows used in operating activities of $3.6 million.
• Cash flows from financing activities of $3.9 million.
• Cash flows used for investing activities of $5.3 million.
• Shareholders’ equity of $89.0 million, up 8.2% from December 31, 2013.

Summary of Financial Results

Comprehensive loss

The Corporation is a development stage company and has no revenues.

Loss before net finance income (expense) and income and mining taxes for the first quarter 2014 increased by $571,535 to $3,414,119, compared to $2,842,384 during the same period in 2013. The increase is attributable mainly to higher HPA plant operation expenses since HPA related costs for Q1 2013 were mostly capitalized and not expensed.

Net loss for the first quarter 2014 increased by $3,900,199 to $4,411,167 ($0.02 per share), compared to $510,968 during the same period in 2013. However, this increase is due mainly to a $3,342,900 non-cash mark-to-market increase in fair value of the convertible debentures presented under net finance expense.

Orbite management held a conference call and provided a live audio webcast on May 13, 2014 at 10 a.m. to discuss the Corporation’s financials and provide an update on the Corporation’s HPA project.