Athabasca Minerals Inc. reported financial statements for the second quarter ending June 30. In the second quarter of 2021, Athabasca reported consolidated revenue of $3.2 million ($0.2 million in the second quarter of 2020) with divisional contributions from AMI Aggregates, AMI RockChain, AMI Silica and TerraShift Engineering.
Robert Beekhuizen, chief executive officer, stated, “AMI is on track for strengthened and improved revenues in 2021. Our six-month ended revenues in 2021 are higher than the mid-year results for the previous four years, and we are cash-flowing across all our divisions. We are optimistic about the balance of 2021 and about the future of AMI.”
Key highlights include:
- Revenue for the second quarter increased to $3.2 million from $0.2 million in the second quarter of 2020, driven primarily by AMI RockChain ($2.3 million) in supporting a major oil sands customer; TerraShift’s ($0.4 million) contribution of a new revenue stream; and AMI Silica which secured a new pit management contract in the quarter ($0.4 million).
- The corporation formed a joint venture company with a confidential partner and established a short-term operations service agreement with an industry client commencing June 1, for an initial term of two months and renewable monthly thereafter. The agreement remains in effect at the issuance of this report and is generating approximately $1.0 million per month gross revenue since June 1 shared 50/50 between AMI and its partner.
- Coffey Lake has been continually active throughout 2021, and the outlook is increasingly positive for the remainder of the year. To the end of June, year-to-date management revenue for Coffey Lake is $1.0 million.
- The corporation announced a transportation contract with a confidential client valued at $4.0 million, which was partially fulfilled in the second quarter and completed in the third quarter.
- Subsequent to quarter end, AMI Silica issued updated NI 43-101 resource reports for the Prosvita Sand Project (previously the Duvernay Project) increasing the total measured in-place mineral resource from 24.7 million metric tons (Mt) to 30.7 Mt.
- AMI Silica filed its regulatory application for the Prosvita Sand Project in June 2021.
- The corporation announced the upgrade of AMI RockChain’s proprietary technologies (RockChain 2.0) which increases the speed and accuracy of its supply chain algorithms to support increased demand by customers and industry users.
- The corporation announced the appointment of Paul Leveille to the role of chief technology officer (CTO) of AMI RockChain Inc., effective July 1.
- The Kearl pit was activated in the second quarter of 2021 preparing material for hauling in the second half of 2021 under a royalty agreement for the delivery of sand.
- The corporation received final provincial approval for development and operation of the Hargwen aggregates pit in Western Alberta.