CALGARY, ALBERTA – April 28, 2016 – Titanium Corporation Inc. (the “Company” or “Titanium”) (TSX-V: TIC)today released its results for the second quarter ended February 29, 2016.
In recent months, the Alberta and Federal Governments have announced a series of programs and measures to address climate change, provide stimulus for the Alberta and Canadian economies and foster economic diversification. The announced programs are described in more detail below. The Company believes its Creating Value from Waste™ technology offers the opportunity to significantly reduce oil sands emissions, increase resource revenues and reduce the industry’s cost structure. The Company’s proposed minerals projects also represent a near term opportunity for value added economic diversification.
“We welcome the government announcements of new funding programs, particularly at this time when the oil sands industry is challenged by continuing low oil prices” commented Scott Nelson, Titanium’s President and Chief Executive Officer. “These programs are key to addressing climate change and our Company will apply to access this new funding as it becomes available.”
The oil sands industry has been facing very challenging economic and regulatory environments and these factors have been impacting proposed projects for adoption of new technologies, including the Company’s. In response to declining commodity prices for crude oil and bitumen for a protracted period now approaching two years, oil sands operators have been aggressively managing their capital spending, including deferring evaluations and sanctioning of new projects and restricting capital spending to sustaining capital expenditures and existing projects. At the same time, new environmental measures and regulations, which are still under development, are making it difficult for oil sands operators to predict potential operational and financial impacts on the industry.
In light of the industry’s economic and regulatory challenges, the Company’s strategy to achieve commercial projects includes:
The following are highlights of progress during the current fiscal year to date:
The Alberta and Federal Government budgets recently announced specific funding programs to address climate change that the Company believes are relevant to commercialization of its technology:
Titanium is focused on achieving long-term financial success by taking its innovative CVW™ technologies into commercial production. Until a commercial investment is made, a plant built and operating at an oil sands site, the Company expects to incur losses. However, with the completion of extensive pilot testing on its CVW™ technology, research & development investment has been substantially reduced as the Company focuses its resources on commercialization.
Net Loss – Net loss for the three month period ended February 29, 2016 was $0.8 million compared to $0.8 million for the three month period ended February 28, 2015. While cash costs have decreased by $0.2 million in the current quarter over the comparable period in fiscal 2015, the reduction was offset by additional non cash charges related to amortization of fair value associated with warrants issued in connection with the loan facility and non cash deferred compensation costs related to the issuance of DSUs and RSUs during the quarter. Titanium’s net loss for the period is in line with expectations as a development stage company.
Research & Development (“R&D”) – For the three month period ended February 29, 2016, R&D spending was $0.2 million and consisted primarily of compensation for technical staff, equity based compensation, rent, equipment storage fees, and patent filing and maintenance fees. R&D spending was consistent with the corresponding period in 2015. Until a commercial arrangement is reached, R&D expenses will continue to be modest.
General & Administrative (“G&A”) – G&A expense was $0.5 million for the three month period ended February 29, 2016 compared to $0.6 million for the three month period ended February 28, 2015 a decrease of $0.1 million. . G&A costs included $0.15 million of non cash equity based compensation in the current quarter. With a focus on preserving cash and implementation of equity based compensation plans, the Company reduced its cash G&A expenses by $0.2 million compared to the corresponding period in fiscal 2015.
Cash Position – The Company had $0.9 million in cash at February 29, 2016 as compared to $0.9 million at August 31, 2015. While there was no change in cash over the six month period ended February 29, 2016, the Company received proceeds of $0.5 million from the exercise of stock options and $0.5 million from funds advanced under the loan facilities secured on October 9, 2015, that offset its general overhead costs and R&D expenses incurred over the past six months. The Company arranged a $1.5 million credit facility in the first quarter to ensure access to financial resources to continue to commercialize its technology and was advanced $0.5 million during the current quarter. The remaining facility available to the Company is $1.0 million. While these short term measures have improved the capital resources, the Company continues to evaluate longer term funding options to ensure adequate capital resources through the commercialization period.
To view the Company’s management discussion and analysis and interim condensed financial statements for the three and six month periods ended February 29, 2016, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc.
Titanium Corporation’s CVW™ technology provides sustainable solutions to reduce the environmental footprint of the oil sands industry. Our technology reduces the environmental impact of oil sands froth treatment tailings while economically recovering valuable products that would otherwise be lost. CVW™ recovers bitumen, solvents and heavy minerals from tailings, preventing these commodities from entering tailings ponds and the atmosphere: volatile organic compound and greenhouse gas emissions are materially reduced; hot tailings water is improved in quality for recycling; and residual tailings can be thickened more readily. A new minerals industry will be created commencing with the production and export of zircon, an essential ingredient in ceramics. The Company’s shares trade on the TSX-V under the symbol “TIC”. For more information please visit the Company’s website at www.titaniumcorporation.com.
Disclosure regarding forward-looking information
This news release contains forward-looking statements and information that reflects the current expectations of management about the future results, performance, achievements, prospects or opportunities for Titanium, including statements relating to advantages of the Company's technology and the creation of a mineral sands industry. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “project”, “should” or “continue” or the negative thereof or similar variations.
Forward-looking information is presented in this news release for the purpose of assisting investors and others in understanding certain key elements of our financial results and business plan, as well as our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Forward-looking information, by its very nature, is subject to inherent risks and uncertainties and is based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking information and that our business outlook, objectives, plans and strategic priorities may not be achieved. In particular, the forward-looking information contained in this news release is based on the results of our research, pilot programs, studies, and commercialization efforts described in our management's discussion & analysis ("MD&A") under the heading “Titanium’s Business”. The Company has not commercially demonstrated its technologies and there can be no assurance that such research, pilot programs, and studies will prove to be accurate nor that such commercialization efforts will be successful, as actual results and future events could differ materially from those expected or estimated in such forward-looking statements. As a result, we cannot guarantee that any forward-looking information will materialize and we caution you against relying on any of this forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
Additional information on these and other factors are disclosed in our MD&A, including under the heading “Discussion of Risks”, and in other reports filed with the securities regulatory authorities in Canada from time to time and available on SEDAR (sedar.com).
The forward-looking information contained in this news release describes our expectations as of April 28, 2016 and, accordingly, are subject to change after such date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking information contained in this news release, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
For further information, contact:
|Scott Nelson||Jennifer Kaufield|
|President & CEO||Vice President Finance & CFO|
|Tel: (403) 561-0439||Tel: (403) 874-9498|
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