Athabasca Reports Lower Aggregates Sales Revenue for 2020

Athabasca Minerals Inc. announced financial results for the fourth-quarter and year ended Dec. 31, 2020. In the fourth quarter of 2020, Athabasca reported consolidated revenue of $0.5 million versus $1.1 million in the fourth quarter of 2019 with a total loss and comprehensive loss of $0.9 million, compared to loss of $1.1 million in the fourth quarter of 2019 and a loss of $2.7 million for the corresponding periods in 2019.

In 2020, aggregates sales revenue was lower due to a decline in AMI’s corporate pit revenue, offset by increased networked third-party sales revenue from AMI RockChain. In 2020, management services revenue decreased due to lower sales volume from Coffey Lake in 2020 compared to 2019 sales from Susan Lake, partially offset by a $0.2 million increase from the addition of TerraShift’s revenue stream.

Robert Beekhuizen, chief executive officer, stated, “In 2020, we streamlined our company with operational efficiencies and reduced our expenses. With the continued progress of our sand projects and an overall increase in industry demand for aggregates, we are well positioned to grow in 2021. Our commitment and focus continues to be on growth throughout the AMI group of companies and continued communication with shareholders.”

Athabasca Minerals reported the following key highlights for the fourth quarter of 2020:

  • AMI Aggregates was impacted by lower activity due to COVID-19 as well as the economic downturn. Production out of Coffey Lake resumed in January 2021, and production out of AMI’s other corporate pits is anticipated to resume in 2021.
  • In fiscal 2020, AMI RockChain has increased sales volumes relative to 2019; however, anticipated volumes were impacted by the economic downturn from COVID-19.
  • On Oct. 26, 2020, the corporation announced the closing of a $1.48 million non-brokered private placement with the issuance of 9,866,688 common shares. The deal was priced at $0.15/share representing a 30% premium to the prior-day closing price. Proceeds from the private placement were allocated to advance Front-End Engineering & Development (FEED) activities for the Duvernay Project and for general corporate purposes. The private placement was supported by JMAC Resources Ltd. as an anchor investor. With the private placement, insider ownership of the Corporation’s Common Shares increased from 8.1% to 22.5% as of the date of closing.
  • On Oct. 26, 2020, the corporation also announced the addition of Jon McCreary, CEO of JMAC Resources Inc., to the board of directors, effective Nov. 1, 2020.
  • Subsequent to the fourth quarter of 2020, on March 15, 2021, the corporation announced a three-year agreement with a two-year renewal option for AMI RockChain to supply aggregates and related services to the Rural Municipalities of Alberta (RMA), their provincial membership of 69 rural municipalities, and their inter-provincial affiliates.
  • Subsequent to the fourth quarter of 2020, also on March 15, 2021, the corporation announced TerraShift securing contracts valued at more than $600,000 to: (a) provide municipal services associated with environmental waste management for the Ministikwan Lake Cree Nation for the next 12 months, and (b) secure peat resources and regulatory approvals for a confidential industry client.
  • Subsequent to the fourth quarter of 2020, on Feb. 5, 2021, the corporation announced the acquisition of 100% interest in Privco1 and Privco2, the private Alberta corporations that hold the Montney In-Basin Project and the Duvernay Sand Project, respectively. These transactions were combined and concluded for $1.00 of cash consideration and 8,000,000 common shares at a value of $0.25 per common share for a total purchase price of $2,000,001 released over three milestone installments.

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