Orbite announces first quarter 2015 results

Orbite Aluminae Inc. announced the filing of its Consolidated Interim Financial Statements for the first quarter ended March 31, 2015. The Company reported a net loss of $2.7 million (or $0.01 per share) for the first quarter ended March 31, 2015, as compared to a net loss of $4.4 million ($0.02 per share) for the same period in 2014, representing a decrease of $1.7 million, or 39.1%. All dollar amounts are in Canadian dollars unless stated otherwise.

First Quarter Highlights:
• Cash and Short-Term Investments of $2.2 million as at March 31, 2015.With subsequent $10 million bought deal ($9.4 million net of underwriter's fee) announced on April 6, 2015, pro-forma balance of $11.6 million.
• Short term loan increased by $3.0 million during Q1 2015 compared to December 31, 2014 due to the receipt of the $3.0 million loan from Investissement Quebec.
• Long-term debt (including short-term portion) and convertible debentures increased by $0.1 million and by $0.3 million, respectively, during the first quarter of 2015, as compared to December 31, 2014. Both increases in convertible debentures and in long-term debt are mainly due to effective interest accretion during the period.
• Property, Plant and Equipment increased by $3.6 million to $83.0 million.
• HPA plant operation expenses remained relatively stable at $0.9 million, as compared to the same period in 2014.
• Net finance expense decreased by $0.9 million to $0.2 million, as compared to Q1 2014. The decrease was attributable mainly to positive change in the effect of changes in fair value of derivative financial instruments and increase in interest income.
• Quarterly Net loss and Comprehensive loss of $2.7 million (or $0.01 per share) for the first quarter ended March 31, 2015, as compared to a net loss of $4.4 million ($0.02 per share) for the same period in 2014, representing a decrease of $1.7 million, or 39.1%.
• Cash flows used in operating activities decreased by $1.8 million to $1.8 million during the quarter ended March 31, 2015, compared to the same period in 2014.
• Adjusted for certain non-cash working capital items and net interest payments, cash flow used in operations down by $0.4 million.
• Cash flows used for investing activities of $2.4 million.
• Shareholders' equity of $99.4 million, down slightly from $101.9 million for December 31, 2014.

The Company is a development stage company that has not generated any revenues or significant cash flows from its operations. As at March 31, 2015, the Company had working capital (current assets less current liabilities) of $1.9 million. Following the $10 million bought deal ($9.4 million net of underwriter's fee) completed on April 6, 2015, the Company had, on a pro-forma basis, a cash and short-term investments balance of $11.6 million and a pro-forma working capital of $11.3 million.

The consolidated financial statements have been prepared on a going concern basis, meaning on the basis that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations.

In order to finance the completion of the construction and commissioning of the HPA plant, the Company closed a $10 million bought deal on April 6, 2015 with a potential to increase to $15 million. Combined with monthly burn rate and expectation of starting commercial production in the third quarter of 2015, the Company will need to raise an additional $16.1 million or 11.1 million if the additional 5 million mentioned above is exercised prior to expiry of the option on May 6, 2015. The Company is currently working on alternative sources of financing.

"With the installation of the refractory materials ongoing and on schedule, we continue to be on track towards the completion of our 3 tpd HPA plant, and commencement of commercial production in Q3 2015," stated Glenn Kelly , CEO of Orbite. "We look forward to updating our shareholders of our progress in the coming months via press release and at our upcoming AGM, to be held June 18, 2015 in Montreal."