News Article | February 28, 2017
“I am pleased to report another excellent set of results in 2016 from Eurofins, with organic growth nearly double our annual objective. In 2016, we made significant progress towards both our financial and operational objectives. With 89% of Group revenues now generating 21.3% EBITDA margin, Eurofins is able to continue investing for future growth such as the roll-out of multiple start-up laboratories in high-growth markets, as well as deliver profit improvements (+50bp expansion in reported EBITDA margin), and earnings expansion (+91% uplift in reported EPS). Operationally, we continue to make steady progress on key initiatives including the addition of 46,000m2 of state-of-the-art laboratory surface in 2016 alone, development and commercialization of many innovative tests to better serve our clients, internal development of tailor-made IT solutions that should further elevate the Eurofins laboratory network ahead of its peers, and the roll-out of over 20 new start-up laboratories in 2016. I would like to thank and compliment our teams in the 39 countries where we operate laboratories around the world for their outstanding dedication and performance in what was once again the best year ever for Eurofins as well as thank our clients and shareholders for their continued support.” In view of the positive developments in our start-up investment program as detailed on page 7 of this press release, the Group has significantly accelerated the current program which commenced in 2014, to open 76 start-up laboratories by the end of 2017. Start-ups complement the Group’s acquisition strategy, and provide a compelling alternative in markets or segments where acquisition prices are too high. Start-up investments therefore allow the Group to enter or reinforce its leadership in high-growth markets without putting value creation at risk by overpaying for acquisitions. In addition, despite investments to strengthen barriers to entry and secure future growth drivers, the Group continues to optimize its capital structure, successfully de-levering the balance sheet to 1.16x net debt to adjusted EBITDA, and deliver strong cash generation, with a 40% increase in free cash flow to the firm8 in 2016. Therefore, whilst the strong growth outlook of the existing businesses allows the Group to be selective to ensure that we maintain financial discipline with regards to acquisitions, our strong balance sheet means that Eurofins is better-positioned than ever to respond to large, compelling opportunities as and when they arise. Overall, the Group’s performance in the first of its 5-year plan bodes well for the achievement of our mid-term objectives. In light of these results and the continued positive outlook for the Group, the management will be proposing a 38% increase in dividends to EUR 2 per share. N.B. H2 2016 results can be found in Table 3 on page 8 of this press release Revenues grew 16.0% to EUR 699.3m in the fourth quarter, bringing revenues for the full year 2016 to EUR 2,536.6m, representing year-on-year increase of 30.1%, of which over 9% was organic. Acceleration in market share gains in most geographies, increased customer penetration, as well as continued growth in the testing market underpin the robust growth across the Group. Currency translation had a limited impact of -0.3% during the year. Taking the annualized revenues of all the acquisitions completed during the year, 2016 pro-forma revenues were EUR 2,658.6m. In Q3 and Q4 2016, Eurofins once again exceeded its 5% organic growth objective despite very strong comparable level of almost 9% in H2 2015, and clinical testing bearing most of the annual impact of cost containment measures by payors in Q4. The stronger organic growth generated by the Group compared to its 5% annual growth objective continues to be driven by a ramp-up in volumes, and supported by continued strength in the underlying trends across many of its businesses. During the year, Eurofins’ food testing business once again outperformed the Group’s organic growth objective, driven by rising awareness among consumers and across the food industry of the need for more systematic testingi, and the Group’s capability to often respond to the industry’s needs better than any other laboratory testing service provider. Strong performance from some of the Group’s environment testing businesses, notably air and water testing in France and Germany, partially offset some of the impact of slower economic activity in the rest of Europe, as well as the continued weakness in the US environment testing market. Although organic growth in environment testing for 2016 was lower than the Group average, the business is well-positioned for growth due to the scale of its network. Organic growth generated by the Group’s pharmaceutical testing business remained well above the Group’s 5% objective in 2016, on the back of further growth acceleration in pharmaceutical products testing, and as the Group unwinds and starts to see the benefits of the reorganization of its discovery services business, as well as the steady build-up of the order book in the central laboratory business. In the broader industry, the steady number of applications for FDA approvalsii, and strong growth in drug salesiii, are supportive of the underlying fundamentals for the pharma testing business in the medium term. The Group’s clinical testing business continues to gain traction, following several acquisitions in the US and in Europe. Innovation continues to be a solid growth driver in US clinical testing, while in Europe, the Group continues to roll-out its strategic footprint. In both markets, Eurofins continues to leverage its expertise in genomics, and more broadly in pharmaceutical testing. Positive trends continue to drive the growth in Eurofins’ businesses in North America, where revenues increased 24.9% to EUR 803.6m, comprising nearly 32% of total Group revenues. Regulatory catch-up remains a key growth driver for the food testing market, and Eurofins continues to gain market share, as reflected in the high single-digit organic growth generated by the Group’s US food testing business. Eurofins’ pharma testing businesses in the US delivered another solid performance in 2016, with strong organic growth in biopharma products testing driven by continued growth in drug sales and new drug applications, as well as strengthening central lab order book. The completion of the site reorganization programme in its discovery services business has also started to bear fruit, as reflected in the organic growth generated by the business in 2016 which was above Group objective. In addition, Eurofins has further expanded its footprint with the launch of medical device testing to add to its comprehensive pharma testing competencies, reinforce its market leadership, and secure additional growth driver. Organic growth in environment testing was somewhat below Group objective as market consolidation continues to be the main driver, which should purge oversupply in the market in due course. The Group’s specialty clinical diagnostics businesses contributed good organic growth in spite of strengthening reimbursement headwinds in H2 as the laboratories expand their sales forces to accelerate the commercialization of their tests and invest in further development of new innovative tests and services. Overall, trends are expected to continue to be supportive of Eurofins’ businesses in North America and the Group continues to invest in expanding its footprint in the region. In France, Eurofins’ second largest market with nearly 25% of total Group sales, revenues increased 69.3% to EUR 625.9m. Organic growth was in-line with Group objective as the clinical testing businesses, which account for over half of revenues in France, generated better than expected growth despite the annual adjustments in reimbursements being fully applied in Q4, according to the French health authority budget. The food testing business performed strongly during the year on continued market share gains supported by capacity expansion driven by innovation, such as the launch of the Maldi-TOFiv technology which significantly reduces turn-around time and increases capacity for microbiology testing. In addition, Eurofins continues to leverage its international network to become the preferred laboratory partner for clients with equally wide footprint. For example, the Group’s flagship food laboratory in Nantes gained the German QS accreditation to test for pesticides in fruits and vegetables, allowing Eurofins to partner with customers whose products are shipped in markets requiring such certification. Likewise, the selection of Eurofins by the ANEEFELv as one of a handful of reference laboratories in France to serve the fruit and vegetable industry gives access to an important market, and is another demonstration of the Group’s capabilities. The Group’s environment testing business in France also generated organic growth above Group objective driven by market share gains and positive trends especially in indoor air testing. The water testing business also delivered solid performance on the back of recently-won public tenders (“Agence de l’Eau Seine Normandie” and “Agence de l’Eau Loire Bretagne”) as well as increased volumes from existing customers. The clinical diagnostics testing business also generated better than expected growth, validating the Group’s strategy of building a differentiated platform focused on building regional leadership and leading the market for specialized, highly-innovative diagnostic tests. Revenue contribution from Germany, which makes up 11% of Group revenues, was EUR 279.4m in 2016, representing growth of 11.6%, most of which was organic. The food testing business continues to strengthen, generating the highest revenue growth in five years, with growing scale effect reflected in higher activities from cross-selling initiatives, as well as higher share of incremental market volumes driven by new regulations such as those addressing potential contaminants from packaging materialsvi. Increasingly harmonised service offering from different Eurofins laboratories was reflected in greater penetration and higher volumes from key global food customers. The Group’s environment testing business in Germany also delivered strong performance reflecting continued growth even in a mature market. The Group’s businesses in the Benelux achieved revenues of EUR 191.2m, representing 7.5% of total Group revenues, and an increase of 20.9% compared to 2015, driven by new businesses won such as the new contract for groundwater analysis in Belgium. Eurofins’ Nordic businesses generated EUR 172.4m of revenues in 2016, making up nearly 7% of total sales. The Group continues to generate robust growth despite high market share across the region as it benefits from past investments which strengthened its ability to continually expand the services it can provide to clients, resulting in increased share of clients’ testing spend. Revenues from the UK & Ireland grew 26.8% to EUR 122.0m, as the strong performance from the pharmaceutical testing business offset the exit from some water testing segments. Eurofins continues to expand its footprint in emerging markets and Asia Pacific, which contributed revenues of EUR 342.1m, an increase of 27.1% versus 2015, as the Group continued to expand its Asian footprint both organically and through acquisitions. Overall, the Group delivered strong performance across its businesses in 2016, supported both by positive underlying trends, and the benefits of past investments to build the best laboratory network infrastructure in its markets to serve the needs of its clients. The strong results achieved by Eurofins in most of its markets reflect the progress that the Group is making in securing leadership and strengthening its footprint in each of its areas of competence. Group adjusted EBITDA increased 32.9% to EUR 479.6m in 2016 as margin expanded by 40bp to 18.9% driven by the strong revenue growth and profitability improvements in both the mature businesses and those that had been recently transferred out of the start-up/businesses in reorganization perimeter. The mature businesses of the Group, i.e. excluding start-ups and acquisitions in significant restructuring, generated EUR 2,254.3m of revenues during the period, implying that the margin for these businesses further expanded to 21.3%. Start-ups and businesses in restructuring or reorganization generated the remaining EUR 282.3m of revenues, which means that these businesses now account for 11.1% of total Group revenues, compared to 12.5% in 2015. Start-up losses and restructuring costs as disclosed in the separately disclosed items2 (SDI) were EUR 18.5m in 2016, representing 3.9% of the total EBITDA generated by the mature businesses of the Group, a further reduction compared to the 4.4% level in 2015 despite the acceleration in the Group’s start-up investments and the finalization of some of the reorganization of its discovery services business in the US, the site consolidation programs in the UK and Benelux, and the relocation of its US genomics business to Louisville, KY. Even with multiple investments for future growth that are temporarily dilutive, reported EBITDA margin still expanded by 50bp to 18.2% as reported EBITDA increased by 33.6% to EUR 461.1m due to strong top line growth and economies of scale, allowing continued profit expansion in the Group’s mature businesses. Adjusted EBITAS increased 35.3% to EUR 357.6m despite the 27.6% year-on-year increase in depreciation and amortization, due largely to the elevated capital expenditures in recent years. The strong growth in profitability resulted in a 36.5% growth in reported EBITAS to EUR 319.4m as EBITAS margin expanded by 60bp to 12.6% during the year. Non-cash stock option charge and net acquisition-related expenses grew only modestly by 4.3% resulting in a growth of 42.3% in reported EBIT for the Group to EUR 281.9m. Finance costs in 2016 were EUR 70.8m, remaining stable at 2.8% of total revenuesvii, despite the cost of carrying more than EUR 820m of unused cash on the balance sheet at year-end and a similar amount throughout 2016. Adjusted Financial Result remained stable at -1.9% of Revenues. The income tax expense has decreased by more than 500bps to 26.8% of the profit before income taxesviii. This is the result of some exceptional finance income and the measures put in place by management to achieve an optimum tax structure, including the recognition of deferred tax assets where applicable. Adjusted net profit stood at EUR 221.6m for 2016. Due to the strong revenue growth and profit improvement, and with finance costs stable relative to revenues, reported net profit nearly doubled to EUR 174.0m during the year, translating to a 90.6% uplift in the Group’s basic earnings per share (EPS), which exceeded EUR 10 for the first time, at EUR 10.88. The 83.3% increase in pre-tax profit to EUR 242.6m, in addition to the successful management of net working capital to 3.7% of sales at the end of December 2016 (versus 5.1% in June, and against 5% NWC/Sales annual objective), resulted in a 27.7% increase in operating cash flow for the Group, to EUR 371.8m in 2016. Capital expenditures for 2016 were EUR 194.1m. Although the absolute amount represents an 18.5% increase from the previous year, capex/sales declined by 70bp to 7.7%, compared to 8.4% in 2015, demonstrating progress towards management’s commitment to its objective of managing capital expenditures program progressively closer to 6% of sales by 2020. Capital expenditures during the year were, among others, related to 46,000m2 of additional state-of-the-art lab surface, the launch of 22 new start-up laboratories during the year, as well as continued development and deployment of the Group’s new generation of IT solutions. The Group’s capital spending is consistent with its commitment to strengthening its long-term competitive advantage by building a state-of-the-art laboratory network and bespoke IT solutions. Eurofins generated robust cash flows in 2016, with free cash flow to the firm growing 39.5% to EUR 177.7m as strong revenue and profit growth offset the increase in capex. Likewise, free cash flow to equity increased 26.1% to EUR 125.9m despite the increase in interest payments due to higher gross debt, and penalties for early repayment of the EUR 170m Schuldschein loan (of which the amount due in July 2018 was paid two years early in July 2016) and the remaining EUR 116m OBSAAR bonds (of which the amount due in June 2017 was paid 6 months early in December 2016). At the end of December 2016, the Group’s leverage ratio stood at 1.16x net debt/adjusted EBITDA, well below the 3.5x limit, as net debt was reduced to EUR 557.8m, compared to EUR 916.3m in December 2015. The significant reduction was due to the higher cash generation, as well as the successful issuance of new shares in June and in September 2016, which raised total proceeds of EUR 496m. In 2016, Eurofins completed 27 acquisitions that either strengthen Eurofins’ leadership in existing markets, or further develop the Group’s expanding footprint in its newer markets, such as in clinical diagnostics testing, or in Asia Pacific. Some of Eurofins’ acquisitions during the year are discussed below. In January, Eurofins acquired Sinensis Life Sciences, a leading provider of pharmaceutical product testing and cGMP Quality Control (QC) services in the Netherlands, further reinforcing the Group’s global leadership in this area of pharmaceutical products testing. In the same month, Eurofins also acquired Biotech-Germande SAS, one of the leading players in the environmental clinical testing and hospital hygiene market, as well as in medical device evaluation in France. Biotech-Germande complements Eurofins' growing footprint in the testing market for the healthcare sector in France. In March, Eurofins further strengthened its pharmaceutical products testing footprint with the acquisition of ams Laboratories and Advantar, two leading independent analytical and cGMP Quality Control (QC) service providers in Australia, and the US West Coast respectively. In April, Eurofins acquired PerkinElmer, Inc.’s U.S. prenatal screening laboratory services business PerkinElmer Labs/NTD, a reference laboratory in the US for first and second trimester prenatal screening. The acquisition strengthens Eurofins’ growing footprint in the genetics segment of the specialty clinical diagnostic testing market. Eurofins completed the acquisition of EAC Corporation from Asahi Industries in Japan in May. EAC should reinforce the Group’s local footprint as well as its platform to further deploy the Group’s analytical expertise especially in water and dioxin testing. As part of the acquisition, Asahi and Eurofins entered into an exclusive service contract for a period of 3 years. At the end of May, Eurofins strengthened its leadership in the French food testing market with the acquisition of Agro-Analyses SAS, one of the leading analytical service providers supporting the food retail and catering sectors in France. In June, Eurofins acquired Bureau de Wit BV, one of the main laboratory service providers focused on food and water safety testing for the food production, hotel and catering sectors in The Netherlands. In July, the Group successfully closed the acquisition of Exova’s food, water and pharmaceutical testing business in the UK & Ireland, reinforcing Eurofins’ existing footprint as well as expanding client reach in the UK and Ireland. In September, Eurofins strengthened its footprint in the specialty clinical diagnostics market with the acquisition of VRL Laboratories, one of the leading laboratories in pre-transplant testing for the eligibility determination for Donors of Human Cells, Tissues, and Cellular and Tissue-Based Products (HCT/Ps) in the US. In the same month, Eurofins further reinforced its clinical diagnostics footprint in Europe with the acquisition of Megalab, one of the top five clinical diagnostic laboratory groups in Spain. Towards the end of the year, the Group further expanded its presence in North America with the acquisition of Exova’s environment testing business in Eastern Canada, and in Latin America with the acquisition of ASL Análises Ambientais, one of the leading environment testing service providers in Brazil. Total acquisition spend in 2016 was EUR 201mix for total annualized revenues in excess of EUR 220m. Including earn-outs for these newly acquired companies, this translates into an EV/sales multiple of ca 1x for the year 2016, which remains very reasonable and in line with our historical metrics. Eurofins delivered 46,000m2 of the 106,000m2 of laboratory surface planned to come on stream by the end of 2017 as part of its ongoing investment program to build the largest and most efficient state-of-the-art laboratory network in its industry. Between 2005 and 2016, Eurofins has added or brought to the most modern standards over 380,000m2 of laboratory space. In-line with the positive outlook in the US domestic testing market, the Group is further expanding its laboratory campus in Lancaster, already the largest independent single-site laboratory in the world, with a planned 17,200m2 extension to be completed by the end of 2018, of which 1,600m2 is expected to come on stream by the end of this year. Boston Heart Diagnostics (BHD) has also completed the extension of its testing facilities in Framingham, MA, which has increased its laboratory surface by over 40% to 9,300m2. In Asia Pacific, the Group is on track to complete the expansion of its main Chinese food testing laboratory in Suzhou, as well as the construction of new food testing laboratories in Australia and Singapore by the end of 2017. These projects follow the completion of the Group’s new laboratories in Hong Kong and India, as well as the multiple site upgrade and expansion projects in Australia and New Zealand in 2015. In addition to infrastructure expansion, the Group is also undertaking several site rationalization projects with part or full site upgrades, consolidating several small sites into fewer but larger industrialized sites, or simply moving some businesses into our large campuses to maximize synergies and optimize efficiencies across our businesses. The move to consolidate several small sites to a large campus in Hamburg is expected to be completed by 2019, as are the site consolidation programs in Benelux and Sweden. Encouraged by the strong performance from its start-up laboratories, with the newly-opened laboratories from the latest start-up program (launched in 2014) generating 101% revenue growth in 2016, and the 18 laboratories from the previous program (launched in 2010) generating 22% revenue growth and 19% EBITDA margin in 2016, the Group has accelerated its current start-ups program. Between 2014 and the end of 2017, Eurofins plans to open 76 green-field laboratories (from the original 35 announced in 2015), which would mean an average of 20 start-ups launched per year during that period. This would take total start-ups launched by the Group to 110 laboratories between 2007 and 2017. 1 Adjusted – reflects the ongoing performance of the mature and recurring activities excluding “separately disclosed items”. 2 Separately disclosed items - includes one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new acquisitions undergoing significant restructuring, non-cash accounting charges for stock options and free shares, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, discontinued activities and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions, net finance costs related to borrowing and investing excess cash and one-off financial effects and the related tax effects. (Details in Note 2.3 of the 2016 Consolidated Financial Statements). 3 EBITDA – Earnings before interest, taxes, depreciation and amortisation, non-cash accounting charges for stock options and free shares, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, discontinued activities and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions. 4 EBITAS – Earnings before interest, taxes, non-cash accounting charges for stock options and free shares, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, discontinued activities and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions. 5 Net Profit – Net profit for equity holders after non-controlling interests but before payment to Hybrid capital holders 6 Basic EPS – earnings per share (basic) total (to equity holders before payment of dividends to Hybrid capital holders) 7 Operating Cash Flow – Net cash provided by operating activities (after tax) 8 Free Cash Flow to the Firm –Operating Cash Flow, less Net capex 9 Organic growth for a given period (Q1, Q2, Q3, Half Year, Nine Months or Full Year) - non-IFRS measure calculating the growth in revenues during that period between 2 successive years for the same scope of businesses using the same exchange rates but excluding discontinued activities. For the purpose of organic growth calculation for year Y, the relevant scope used is the scope of businesses that have been consolidated in the Group's income statement of the previous financial year (Y-1). Revenue contribution from companies acquired in the course of Y-1 but not consolidated for the full year are adjusted as if they had been consolidated as from 1st January Y-1. All revenues from businesses acquired since 1st January Y are excluded from the calculation. For details of the FY 2016 results, including consolidated financial statements and related notes, please visit: http://www.eurofins.com/investor-relations/reports-presentations/ Eurofins Scientific through its subsidiaries (hereinafter sometimes “Eurofins” or “the Group”) believes it is the world leader in food, environment and pharmaceutical products testing and that it is also one of the global independent market leaders in certain testing and laboratory services for agroscience, genomics, discovery pharmacology and for supporting clinical studies. In addition, Eurofins is one of the key emerging players in specialty clinical diagnostic testing in Europe and the USA. With over 27,000 staff in 310 laboratories across 39 countries, Eurofins offers a portfolio of over 130,000 analytical methods for evaluating the safety, identity, composition, authenticity, origin and purity of biological substances and products, as well as for innovative clinical diagnostic. The Group objective is to provide its customers with high-quality services, accurate results on time and expert advice by its highly qualified staff. Eurofins is committed to pursuing its dynamic growth strategy by expanding both its technology portfolio and its geographic reach. Through R&D and acquisitions, the Group draws on the latest developments in the field of biotechnology and analytical chemistry to offer its clients unique analytical solutions and the most comprehensive range of testing methods. As one of the most innovative and quality oriented international players in its industry, Eurofins is ideally positioned to support its clients’ increasingly stringent quality and safety standards and the expanding demands of regulatory authorities around the world. The shares of Eurofins Scientific are listed on the Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP). This press release contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates contained herein represent the judgement of Eurofins Scientific’ management as of the date of this release. These forward-looking statements are not guarantees for future performance, and the forward-looking events discussed in this release may not occur. Eurofins Scientific disclaims any intent or obligation to update any of these forward-looking statements and estimates. All statements and estimates are made based on the information available to the Company’s management as of the date of publication, but no guarantee can be made as to their validity. Eurofins provides in the Income Statement certain alternative performance measures (non-IFRS information such as “Adjusted Results and Separately Disclosed Items”) that exclude certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. (Refer to description of Separately Disclosed Items). In addition, Eurofins shows the following two earnings measures in the Income Statement with the objective to be close and consistent with the information used in internal Group reporting to measure the performance of Group companies and information published by other companies in the sector: EBITDA: Earnings before interest, taxes, depreciation and amortisation, non-cash accounting charges for stock options and free shares, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, discontinued activities and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions” EBITAS: Earnings before interest, taxes, non-cash accounting charges for stock options and free shares, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, discontinued activities and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions” Organic growth for a given period (Q1, Q2, Q3, Half Year, Nine Months or Full Year) - non-IFRS measure calculating the growth in revenues during that period between 2 successive years for the same scope of businesses using the same exchange rates but excluding discontinued operations. For the purpose of organic growth calculation for year Y, the relevant scope used is the scope of businesses that have been consolidated in the Group's income statement of the previous financial year (Y-1). Revenue contribution from companies acquired in the course of Y-1 but not consolidated for the full year are adjusted as if they had been consolidated as from 1st January Y-1. All revenues from businesses acquired since 1st January Y are excluded from the calculation. Management believes that providing these alternative performance measures enhances investors' understanding of the company’s core operating results and future prospects, consistent with how management measures and forecasts the company’s performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. This information should be considered in addition to, but not in lieu of, information prepared in accordance with IFRS. i https://ec.europa.eu/food/sites/food/files/safety/docs/rasff_annual_report_2015.pdf ii http://www.fda.gov/downloads/Drugs/DevelopmentApprovalProcess/DrugInnovation/UCM536693.pdf iii http://www.fiercepharma.com/sales-and-marketing/drug-sales-expected-to-top-1-3t-2018?utm_medium=nl&utm_source=internal iv Matrix Assisted Laser Desorption Ionization Time-of-Flight v Association Nationale des Expéditeurs et Exportateurs de Fruits et Légumes vi Regulation of mineral oil saturated hydrocarbons (MOSH) and mineral oil aromatic hydrocarbons (MOAH) http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+MOTION+B8-2016-0411+0+DOC+XML+V0//EN ; Legislation on Polycyclic Aromatic Hydrocarbons (PAHs) https://ec.europa.eu/jrc/en/eurl/pahs/legislation vii Compared to 2015 level adjusted for the impact of derivative financial instruments ix including earn-out payments on acquisitions completed in previous years
News Article | February 28, 2017
VANCOUVER, BC--(Marketwired - February 28, 2017) - Alderon Iron Ore Corp. (TSX: ADV) ("Alderon" or the "Company") is pleased to announce that it has received the results of the preliminary economic assessment ("PEA") on the Rose Deposit of the Kamistiatusset ("Kami") Iron Ore Property in Western Labrador. The PEA was prepared as a result of a re-scoping exercise of the capital and operating costs of the Kami Project, which was necessary in order to identify the savings that arose as a result of the depressed state of the market that existed over the last several years, changes in ownership and management of assets in the Labrador Trough (including the acquisition by Société du Plan Nord of rail and port infrastructure) and the idling of the neighbouring Wabush Scully Mine (please see news release dated October 19, 2016). With market conditions now improving, it is an ideal time for the completion of the re-scoping exercise. "The completion of the PEA marks the beginning of the re-boot of the Kami Project in the new economic environment for iron ore," said Mark Morabito, Chairman and CEO of Alderon. "The Company has completed the economic analysis using an iron ore price assumption that is well below the current spot price, adjusted for 65% iron content and low impurities. The Wabush Scully Mine, which was operated from 1965-2014, is depleted of economic ore reserves. The Kami Project can utilize the depleted pit at Wabush as a tailings solution and bring much needed jobs and economic development to the region with a 29-month construction period, followed by a 24-year mine life. The PEA demonstrates that the capital and operating costs of the Kami Project have been significantly reduced in the current environment and the project has attractive economics at an iron ore price that is well below the current spot price." The PEA replaces the previous 2012 Feasibility Study NI 43-101 report (the "2012 Feasibility Study") as the current technical report for the Kami Project. Significant portions of PEA remain unchanged from the Feasibility Study, including sections relating to geology, exploration, drilling, sampling and data verification, and the mineral resource estimate. The current PEA includes the replacement of the port handling and terminal facilities in the Pointe-Noire area of Sept-Îles, Québec, with proposed access to the new multi-user terminal facility at the Port of Sept-Îles that will be open to all market participants, and the integration of the Wabush Scully Mine property as a tailings solution. The present study was prepared as a PEA, not a feasibility study, as a result of the proposed integration of the Wabush Scully Mine property. The Company currently does not have access to the Wabush Scully Mine property to complete the additional engineering and technical work that would be required for the preparation of a feasibility study. For additional information, see below under the heading "Comparison to 2012 Feasibility Study." 100% of the production from the Kami Project has been pre-sold under the terms of off-take agreements with Hesteel Iron & Steel Group Co., Ltd. (formerly Hebei Iron & Steel Group Co., Ltd.) ("Hesteel") and a subsidiary of Glencore plc. The FOB concentrate sales price, which is 36% lower than the long-term price used in the 2012 Feasibility Study, was calculated based on the terms of these off-take agreements. Further details regarding the concentrate sale price are set out below in this news release. The PEA was completed by BBA Inc. ("BBA") located in Montreal, Quebec, Gemtec Limited ("Gemtec") located in St. John's, Newfoundland & Labrador and Watts, Griffis and McOuat Limited ("WGM") located in Toronto, Ontario, and is effective as of February 28, 2017. The technical report (the "Report") summarizing the results of the PEA and prepared in accordance with National Instrument ("NI") 43-101 compliant will be filed on SEDAR and Alderon's website within 45 days of this news release. The results of the PEA are based on 100% ownership of the Kami Project. The Kami Project is held through The Kami Mine Limited Partnership ("Kami LP"), as to 75% by Alderon and 25% by Hesteel. In addition, the results of the PEA disclosed in this press release are expressed in USD and pre-tax (except where otherwise indicated). Alderon has engaged Strategic Concepts, Inc. of St. John's, Newfoundland to update the economic impact assessment of the Kami Project previously released in June of 2012 for the Provinces of Newfoundland & Labrador and Québec (the two regions where the Kami Project has the largest impact) and all other regions across Canada. The updated economic impact analysis will be released in the near future. The completion of this study also forms the basis for Alderon to resume its financing and development efforts for the Kami Project. The PEA demonstrates robust project economics. Based on a production rate of 7.8 million tonnes per year of iron ore concentrate at a grade of 65.2% iron, the PEA shows a Net Present Value ("NPV") of US$1,377 million at a cash flow discount rate of 8%. The internal rate of return ("IRR") for the project is 23.8%. The level of accuracy of the PEA is considered to be +/-30% and an exchange rate of $1.00CDN = US$0.77 was used. On a post-tax basis, the PEA shows a NPV of US$712 million at a cash flow discount rate of 8%. The post-tax IRR for the project is 17.9% and the payback period is 4.7 years. The post-tax analysis is based on a number of assumptions which will be fully set out in the Report. Based on the assumption that commercial production would begin 29 months after the start of construction and would continue for 24 years, the following results were obtained: Total capital expenditures (including contingency) are estimated at US$897.5 million. The capital cost estimate excludes closure costs and sustaining capital, which are expected to be in the order of $30.7 million and $254.6 million respectively for the life of the project. These costs are included in the financial analysis for the project. The PEA assumes a Concentrate CFR selling price of US$79.30/tonne. This price was calculated using the 3-year trailing average price of US$69.40/tonne for the Platts IODEX 62% Fe, CFR North China, adding the spot Fe premium of US$12.50/tonne and applying the discounts and premiums from the Hebei and Glencore agreements. The final price of concentrate loaded in ship (FOB) at Port of Sept-Îles assumed in the financial analysis is US$65.30/tonne. The final price is determined after applying shipping costs estimate at US$14/tonne. Shipping costs were estimated based on a study performed by a reputed company retained by the Kami LP. Average life-of-mine ("LOM") operating costs, including annual costs for leasing of equipment (purchase value of US$166.8 million), are estimated at US$31.08/tonne of concentrate. During the life of the project, items of leased equipment are replaced as they reach the end of their service life and these replacement costs are capitalized and reflected as part of the sustaining capital expenditures. Average LOM operating costs are based on the following: This present PEA replaces the 2012 Feasibility Study as the current technical report on the Kami Project. Significant portions of PEA remain unchanged from the Feasibility Study, including sections relating to geology, exploration, drilling, sampling and data verification, and the mineral resource estimate. Other sections such as mineral processing, mining methods, recovery methods, environmental studies, permitting and market studies were updated based on work done and developments since the 2012 Feasibility Study was published, including detailed engineering, completion of the environmental assessment process and execution of key project agreements. However, the present study was prepared as a PEA and not a feasibility study as a result of the following: The present study is therefore qualified as a Preliminary Economic Assessment. As such, NI 43-101 guidelines do not permit the disclosure of mineral reserves. Although NI 43-101 allows the use of inferred resources to be included in an economic analysis for a PEA, as long as the appropriate cautionary language is used to qualify such an analysis, Alderon and BBA have chosen not to include inferred resources in the economic analysis of this present PEA and thus includes only resources that have been classified as measured and indicated. The results of the 2012 Feasibility Study are presented for comparative purposes with the results of the PEA in the table below (pre-tax and in USD): Despite the significant reduction in initial and sustaining capital costs as well as operating costs, the NPV and IRR are lower and the payback period is longer than the 2012 Feasibility Study in large part due to the 36% reduction in the long-term FOB concentrate sales price forecast per tonne. There are two key changes that have resulted in the significant reduction in initial and sustaining capital costs. The first is the re-scoped Tailings Management Facility (TMF) which proposes to utilize the existing Wabush Scully Mine open pits for tailings disposal. In addition to the capital cost savings, this will provide a significant reduction in greenfield footprint and a net benefit to the Wabush Scully Mine property relative to the current closure scenario of allowing the pits to partially flood and otherwise leave them as-is and the demolition of existing infrastructure. The second key change is with respect to the port terminal facilities. Specifically, on March 8, 2016 the Government of Quebec became the owner of rail, stockyard and terminal facilities located in Pointe-Noire area of the Port of Sept-Ȋles. The Government of Quebec acquired these facilities from Cliffs Natural Resources and has announced its plans to use these assets to create a multi-user terminal facility at the Port of Sept-Îles that will be open to all market participants. The multi-user facility may be accessed by participants as either a partner in a newly formed limited partnership or as a non-partner regular user. The Kami LP's ability to access the multi-user terminal facility will result in a significant capital cost savings as it will no longer need to construct its own stockyard and material handling facilities. The multi-user terminal facility will allow the Kami LP to connect to the completed multi-user dock facility that the Kami LP has an existing contract to ship 8 million tonnes per annum of material through. The mineral resources are reported in accordance with NI 43-101 and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and their Guidelines. The mineral resource estimate for the Kami Project is set out below. WGM was retained to audit an in-house estimate completed by Alderon. Mr. Michael Kociumbas, P.Geo. with independent firm, WGM, is a Qualified Persons as defined by NI 43-101 and is responsible for reviewing and approving this mineral resource estimate and the QA/QC associated with the estimate. Mr. Kociumbas has verified, reviewed and approved the technical data contained in this news release and underlying sampling, analytical and test data. The mineral resource estimate has been prepared using a 15% Total Fe cut-off grade, is effective December 17, 2012. The mineral resource estimate for the Kami Project was completed in Gemcom™ using block sizes of 15 m x 15 m x 14 m for Rose Central and Rose North and 5 m x 20 m x 5 m for Mills Lake and is based on results from 209 diamond drillholes at Rose Central and Rose North (170 holes) and Mills Lake (39 holes) zones totaling 62,247 m. These holes were drilled within the iron mineralization for approximately 2,000 m of strike length and a range of 200 to 400 m of width for Rose Central and Rose North. The holes were drilled on section lines that were spaced 100 m apart for both deposits in the main area of mineralization. For the geological modelling, 3-D bounding boxes defining the maximum extents of the Rose and Mills Lake deposit areas were created. The boxes extended approximately 200 m along strike from the outermost drillholes in each area. Mineralized boundaries extended up to a maximum of about 400 m on the ends of the zones and at depth where there was no/little drillhole information, but only if the interpretation was supported by drillhole intersections on adjacent cross sections or by solid geological inference. Only the measured and indicated mineral resources within the Rose Deposit, which consists of the Rose Central and the Rose North deposits, have been considered in the PEA. The mineral resources within the Mills Lake Deposit, and the inferred mineral resources within the Rose Deposit, have not been considered in the economic analysis of this PEA. The mineral resources included within the PEA mine plan ("In-Pit Mineral Resources") for the Rose Deposit, which consider the pit design parameters and include mining dilution and losses, total 536.8 Mt with an average grade of 28.6% TFe. The total stripping is estimated at 698.5 Mt, which includes 128.5 Mt of overburden and which results in a stripping ratio of 1.3 to 1. The In-Pit Mineral Resources consider a cut-off grade of 15% TFe. The table below presents a summary of the In-Pit Mineral Resources. The re-scoped Kami Project is located on two sites: the Kami open pit mine area and the Wabush Scully Mine site. A conceptual project plot plan has been developed for the PEA. The following approach was taken in order to develop the conceptual site plan: The proposed project will produce 7.8 million metric tonnes of 65% iron, low impurity iron ore concentrate per year and will ship concentrate to market via the Port of Sept-Îles facilities at Pointe Noire, Quebec. Mineral processing and concentrate handling for the Project will involve the following steps: A project schedule has been established that starts at the point where construction financing is in place, detailed engineering has been completed, and permits have been obtained such that construction can commence: Prior to construction commencing the Company will have to complete a feasibility study for the re-scoped Project, re-assemble the owner's team, award an EPCM/EPC contract, resume detailed engineering, and have construction financing in place. This process could take several months to complete once it is commenced. A NI 43-101 Technical Report will be filed on SEDAR and on Alderon's website within 45 days of the date of this news release. The Report will consist of a summary of the PEA. The Report is being prepared under the supervision of Mr. Angelo Grandillo, P.Eng, of BBA, a Qualified Person as defined by NI 43-101, with contributions from Gemtec and WGM. Mr. Grandillo is a Qualified Person as defined by NI 43-101 and Mr. Grandillo is independent of Alderon. Mr. Grandillo has reviewed and approved the technical information contained in this news release, with the exception of the mineral resource estimate which was reviewed and approved by WGM as noted above. Mr. Grandillo has verified all the data underlying the technical information disclosed in this news release. Alderon is a leading iron ore development company in Canada. The Kami Project, owned 75% by Alderon and 25% by Hesteel Group Co. Ltd. (formerly Hebei Iron & Steel Group Co. Ltd.) ("Hesteel") through The Kami Mine Limited Partnership, is located within Canada's premier iron ore district and is surrounded by two producing iron ore mines. Its port handling facilities are located in Sept-Îles, the leading iron ore port in North America. Hesteel is Alderon's strategic partner in the development of the Kami Project and China's second largest steel producer. For more information on Alderon, please visit our website at www.alderonironore.com. Alderon is part of the King & Bay West Group ("KBW") of companies. KBW is a merchant bank and management services company that specializes in identifying, funding, developing and managing growth opportunities in the resource and technology sectors. This press release contains "forward-looking information" within the meaning of the U.S. Private Securities Litigation Reform Act and Canadian securities laws concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this press release include, but are not limited to, statements with respect to (i) the details of the re-scoping of the Kami Project including potential capital and operating cost savings, (ii) the estimation of mineral resources; (iii) the market and future price of iron ore and related products; (iv) the negotiation and conclusion of infrastructure contracts; (v) expected infrastructure requirements; (vi) the ability to access the Wabush Scully Mine site, (vii) the use of the multi-user terminal facility at the Port of Sept-Îles; and (viii) the results of the PEA including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction timelines and production timelines for the Kami Project. In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, receipt of governmental and other approvals, the estimation of mineral resources, the realization of resource estimates, iron ore and other metal prices, the timing and amount of future development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Kami Project in the short and long-term, the progress of exploration and development activities, the ability of the Company to gain access to the Wabush Scully Mine site, the ability of the Company to use the multi-user terminal facility at the Port of Sept-Îles, the receipt of necessary regulatory approvals, the estimation of insurance coverage, assumptions with respect to currency fluctuations and exchange rates, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Kami Project, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access rail transportation, sources of power and port facilities, risks relating to changes in iron ore prices and the worldwide demand for and supply of iron ore and related products, risks related to increased competition in the market for iron ore and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Kami Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, risks related to disputes with Aboriginal groups, risks related to a third party acquiring the Wabush Scully Mine site, risks related to insufficient capacity being available for the Company to access the multi-user terminal facility at the Port of Sept-Îles, environmental risks and the additional risks identified in the "Risk Factors" section of the Company's Annual Information Form for the most recently completed financial year, or other reports and filings with applicable Canadian securities regulators. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this press release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
News Article | February 15, 2017
Results from Initial 10 Holes Return Lithium Values Ranging from 600 ppm to a high of 2,320 ppm over 1.22m intervals with an interval-weighted average value of 1,087.1 ppm lithium VANCOUVER, BC / ACCESSWIRE / February 15, 2017 / Noram Ventures Inc. (TSX-V: NRM / FSE: N7R / OTC PINK: NRVTF) ("Noram" or the "Company") and Alba Minerals Ltd. ("Alba") (TSX-V: AA.H AXVEF:US) are pleased to announce the initial sample results from the first 10 holes of the 46-hole Phase I core drilling program that focused on the Zeus portion of its Clayton Valley Lithium Project in Nevada (see Figure 1). The Zeus claims are located within two kilometers (1.25 miles) of Albemarle's Silver Peak Lithium Mine that has been in production since 1966 and is the only lithium-brine production operation in North America. The 10 holes consisted of 139.3 meters (457 feet) of core drilling with an average hole depth of 13.9 meters (45.7 feet) and core sampling done primarily on 1.22 meter (4-foot) intervals. Bradley C. Peek, MSc and Certified Professional Geologist supervised the collection of the cores and samples; and sample analysis was performed by ALS Labs (Reno, NV) on 116 samples from the 10 holes using a 4-acid digestion and MS-ICP methods for 48 elements. Table 1 lists each drill hole's location (NAD 83, Zone 11S), elevation and depth - all in meters. All holes were vertical. All core size was BQ. Drill holes CVZ-01 through CVZ-08 are located in an area measuring approximately 366 meters (1,200 feet) by 213 meters (700 feet). The other two holes, CVZ-09 and CVZ-12 are located approximately 366 meters (1,200 feet) northeast of the main drill-hole grouping (see Figure 2). Lithium values were found to be very consistent across both groupings. Table 2 lists the samples, their intervals, their weights and their lithium analytical results. The core holes were vertical and the sedimentary units that were tested are horizontal or dipping at less than 5º, so the intervals sampled are true widths. Samples intervals were split by geologists at the drilling program staging area. Half of the core was retained in the core boxes for future review and/or sampling. The other half was securely sent to ALS Laboratories in Reno, Nevada, USA for testing. Core recovery for these first 10 core holes averaged 79.5%. The lithium content of the 116 samples had an interval-weighted average of 1,087.1 ppm with a minimum value of 600 ppm and a maximum value of 2,320 ppm, both over 1.22m (4 ft) intersections. The samples had a median value of 1020 ppm Li. These results are well above those seen in the 73 surface samples collected from the drilling area and analyzed during exploration work in 2016 and indicate that some leaching of the lithium has occurred at surface. Laboratory standards with two different lithium ranges (1,237 ppm and 783 ppm) were inserted into the sample stream, along with lithium blanks and duplicate samples (8 QA/QC samples, in all, with this sample batch). The standards and blanks were obtained from MEG Labs of Reno, Nevada, USA. Duplicate samples were obtained by splitting the remaining half of the split core (1/4 of the original core). All analyses of the standards, blanks and duplicates were well within acceptable ranges. "These initial results are better than expected and it is rare to see drill core sample values that exceed the best of previously reported surface-sampling results (Dec 8, 2016). The amazing consistency of the lithium values, both vertically and horizontally, across the initial 10 holes is also very encouraging," said Mark Ireton President and CEO. Analytical results from the remaining 36 drill holes from the Phase 1 drilling program are pending. Noram is amassing one of the largest land packages in Nevada's Clayton Valley. Its non-contiguous North and South Blocks now total 888 claims covering 17,738 acres and are positioned both north and south of Albemarle's Silver Peak mine, North America's only lithium producer. The technical information contained in this news release has been reviewed and approved by Bradley C. Peek, MSc and Certified Professional Geologist, who is a Qualified Person with respect to Noram's Clayton Valley Lithium Project as defined under National Instrument 43-101. Noram Ventures Inc. (TSX-Venture: NRM / Frankfurt: N7R / OTC PINK: NRVTF) is a Canadian based junior exploration company, with a goal of becoming a force in the Green Energy Revolution through the development of lithium and graphite deposits and becoming a low-cost supplier for the burgeoning lithium battery industry. The Company's primary business focus since formation has been the exploration of mineral properties. Current projects include lithium properties in the Clayton Valley of Nevada and the Hector Lode in San Bernardino County, California; and the Jumbo graphite property in southeastern British Columbia. Noram's long term strategy is to build a multi-national lithium-graphite dominant industrial minerals company to produce and sell lithium and graphite into the markets of Europe, North America and Asia. Please visit our web site for further information: www.noramventures.com. ON BEHALF OF THE BOARD OF DIRECTORS /s/ "Mark R. Ireton" This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements; the uncertainty of future profitability; and the uncertainty of access to additional capital. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstance or management's estimates or opinions change. 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.
News Article | February 22, 2017
TORONTO, ON--(Marketwired - February 22, 2017) - NewCastle Gold Ltd. (TSX: NCA) (NewCastle Gold or the "Company") is pleased to report additional assay results from ongoing angled drilling on the South Domes target ("South Domes") at the Castle Mountain gold project (the "Project") located in San Bernardino County, California. This work is part of the 40,000 metre Phase II definition and exploration drill program ("the program") that commenced November 1, 2016. Results are from 30-metre spaced cross-sections 10600N, 10570N and 10540N at South Domes to follow up on previously reported results. Assays from six (6) new drill holes support the advancement of this exciting target with the longest intercept reported to date by the Company in hole CMM-129. New drilling continues to push the extent of gold mineralization beyond currently modeled mineral resources and pit limits, with hole CMM-129 ending in mineralization 100 metres below the modeled pit shell. The South Domes target remains open along strike to the north and south and at depth. Assay highlights from two (2) core and four (4) reverse circulation ("RC") drill holes include: Gerald Panneton, President and CEO commented: "The South Domes area continues to demonstrate the open potential of this exciting target with gold mineralization well above average resource grade. Gold mineralization is being intersected both outside modeled pit limits and at depth. South Domes continues to be our prime exploration target as the deposit is open in all directions. We have added a core drill to the South Domes area to continue expanding the deposit." There are seven (7) rigs actively drilling at the Castle Mountain project. The current drill program is approximately 50% complete with 20,000 metres of core and RC drilling as of February 20, 2017. Eighty percent (80%) of the program is focused on bringing the South Oro Belle pit to the mineral reserve category after completion of the ongoing pre-feasibility study work. The remainder is focused on the growth of the South Domes area, and further exploration on the property. Gold mineralization at South Domes is characterized by broad, shallow east-dipping zones within felsic flows, pyroclastic and intrusive units, with narrower steeply-dipping higher grade zones associated with hydrothermal breccias and quartz-feldspar porphyry intrusive bodies. All new exploration holes were drilled at 290 degrees azimuth, with dips of -60 degrees and to an average depth of 250 to 600 metres. Reverse circulation drill samples from hole CMM-133 were submitted to ALS Minerals in Reno, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 gram ("g") sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (ALS Method PREP-31). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay ("FA") with atomic absorption ("AA") finish (ALS Method AuAA-23). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish (ALS Method Au 30 g FA - GRAV). All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13). Half-sawn core and reverse circulation drill samples from holes CMM-122C/126/129/131/134C were submitted to Inspectorate America Corporation in Sparks, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 g sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (Method PRP70-250). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay ("FA") with atomic absorption ("AAS") finish (Method FA430). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish. All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (Method CN403). The Company employs an industry-standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates. NewCastle Gold (an augustagroup company) has a 100% interest in the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2004. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project. An updated NI 43-101 resource for the project was announced December 2, 2015 which includes Measured Mineral Resources of 17.4 million tonnes grading 0.86 g/t gold containing 0.48 million gold ounces, Indicated Mineral Resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces. The Project hosts a disseminated low sulphidation epithermal system. Gold is primarily hosted by late-stage rhyolite volcanic units within zones of silicification and brecciation associated with northeast-southwest trending/southeast dipping fault structures which are interpreted to have developed within a collapsed caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations. Ian R. Cunningham-Dunlop, P. Eng., the Company's Senior Vice President Technical Services, is the designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same. 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 news release. This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information includes information that relates to, among other things, statements with respect to the completion of the proposed drill program at Castle Mountain, the mineral resource expansion at Castle Mountain and the identification of future expansion targets at Castle Mountain. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results will be consistent with management's expectations. The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the risks discussed under the heading "Risks" in general to the business of NewCastle in documents filed (or to be filed) with Canadian regulatory authorities. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. NewCastle does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. Image Available: http://www.marketwire.com/library/MwGo/2017/2/22/11G131070/Images/NCA-2017-02-22nd_PlanMap_SouthDomes-a251b8a3901ea7b08f8047446e39f5c6.jpg Image Available: http://www.marketwire.com/library/MwGo/2017/2/22/11G131070/Images/NCA-2017-02-22nd_CrossSection_10570N_South_Domes-204fb04dc374ad5d9ecdc9c8189a72df.jpg Image Available: http://www.marketwire.com/library/MwGo/2017/2/22/11G131070/Images/NCA-2017-02-22nd_Long_Section_SouthDomes-bdb63155a9029986a02825da1b95ca97.jpg
News Article | February 27, 2017
VANCOUVER, BC--(Marketwired - February 27, 2017) - Broadway Gold Mining Ltd. (TSX VENTURE: BRD) ( : BDWYF) ( : BGH.F) ("Broadway" or the "Company") is pleased to announce the commencement of underground drilling at its 100%-owned Madison copper-gold project in the historic Butte-Anaconda mining region of Montana, USA. This program, which is ongoing at the same time as the 3,657-metre (12,000-foot) surface drilling program, has two principal aims: The 600 Level drilling will probe the copper-gold zone to depth through a fan of holes. Historic sampling of the 600 Level drifts returned average gold grades of 0.429 ounces per ton (oz/t) with 155 truck grab samples and 13 chip or channel samples ranging from 0.010 to 2.728 oz/t gold. Historic sampling of the 600 Level stopes returned gold grades from 0.012 to 1.924 oz/t, averaging 0.468 oz/t. The samples were a combination of truck grab samples and chip or channel samples. Underground exploration drilling will test the newly discovered mineralization to the west of the historic workings, where the Company just announced an increase in surface drilling footage from 1,371 metres (4,500 feet) to 3,657 metres (12,000 feet). The Company's technical team recommended the increase because of alteration and mineralization observed in the first eight surface drill holes. Broadway cautions investors the increase in surface drill footage is based solely on visual mineralization observations that have not yet been corroborated by assaying. "We are excited to be moving forward with underground work at Madison. The project is situated in a prolific copper-gold mining region and we believe Madison has extensive exploration potential," said Duane Parnham, Chairman of Broadway Gold Mining. "The Broadway team is being as aggressive as possible with our exploration program so that we can determine the potential of the initial targets we have identified." Groundhog Mining of Dillon, Montana is the contractor performing the underground drilling program. All samples from the underground drilling will be shipped to the ALS Minerals Laboratory in North Vancouver, British Columbia, an ISO/IEC 17025:2005 certified facility. Broadway will utilize a program of third-party standards and blanks inserted at regular intervals through the sample stream as its QA/QC program. R. Tim Henneberry, P.Geo., a Director of Broadway and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release. Broadway Gold Mining Ltd. is a mineral exploration and development company that owns a 100% interest in the Madison copper-gold project located in the famous Butte-Anaconda mining region of Montana, USA. The Madison copper-gold project is permitted for exploration and contains a past-producing underground mine that Broadway has refurbished with potential to expand known copper and gold zones that remain open for development. Outside the mining parameter, Broadway has also identified exploration potential within its extensive land package. Neither the TSX Venture Exchange Inc. 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.
News Article | February 15, 2017
TORONTO, ONTARIO--(Marketwired - Feb. 8, 2017) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D)(OTC PINK:ALXDF) ("AZX" or the "Company") is pleased to announce that a second drill rig has launched an initial 4,500 meter drill program on its Triangle Too project. This is a part of a larger 12,500 meter wintertime drill program focused on the western Cadillac Break Properties, Val d'Or, Quebec. The Triangle Too drill program is a follow-up to the smaller, first-pass drill program completed last fall. Alexandria, in 6 out 7 holes drilled, successfully located important geological rocks. These host high grade gold veins in the region: diorite plugs, shear zones and gold-quartz veins. Eric Owens, President and CEO of Alexandria, emphatically stated, "We have strong targets for this portion of a program that will ultimately total 7,500 meters. This is an extensive property-wide drill program which we expect will generate follow-up drilling on additional targets as results come in. This undertaking is an extension of our nearby Orenada Zone 4 program, and fits with our goals of resource growth." The Triangle Too drilling activities are located 1-2 kilometers northwest of Zone 4, where Alexandria recently announced intersecting 21.32 g/t gold over 3.95 meters in one of multiple high-grade gold-quartz veins (see Press Release, February 1, 2017). The second drill rig will test several targets on the Triangle Too program. To date, Alexandria geologists have prioritized a first set of 25 targets. These targets are based on geophysical anomalies in conjunction with geologic information gleaned from scattered historic (pre-Alexandria) drill holes. Drill targets will include relatively shallow drill tests of geophysical anomalies, less than 350 meters in depth. These will also include deeper drill holes on gold-quartz vein-bearing diorite plugs, first identified in last fall's drill program, at a depth below 450 meters. The property is located in prime geologic ground: to the west of the East Sullivan Pluton, south of the Bourlamaque Batholith, and north of the Cadillac Break, and therefore with excellent underlying fundamentals. Notable gold and base metal prospects occur nearby, including Mid-Canada (77,778 t grading 7.44 g/t gold and 0.21% copper), Zone 1 (845,000 t grading 4.9 g/t gold), and the East Sullivan Mine (16.5 Mt grading 1.0% copper, 0.33 g/t gold, 10.46 g/t silver and 0.69% zinc). In other matters, drilling continues with the fifth hole of the season on Zone 4. This hole is located 1-2 km southeast and is testing the stacked high-grade veins in this vicinity. Further information about the Company is available on the Company's website, www.azx.ca, or our social media sites listed below: Program design, management, and Quality Control/Quality Assurance are conducted by Alexandria's exploration group of which Phillippe Berthelot, P.Geo, is the Company's Qualified Person. Mr. Berthelot has reviewed the results in this press release. The QA/QC program is consistent with National Instrument ("NI") 43-101 and industry best practices and has been previously addressed in NI 43-101 reports found on the Company's website or on www.sedar.com. Alexandria Minerals Corporation is a Toronto-based junior gold exploration and development company with strategic properties located in the world-class mining districts of Val d'Or, Quebec, Red Lake, Ontario and Snow Lake-Flin Flon, Manitoba. Alexandria's focus is on its flagship property, the large Cadillac Break Property package in Val d'Or, which hosts important, near-surface, gold resources along the prolific, gold-producing Cadillac Break, all of which have significant growth potential. WARNING: This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward-looking statements. 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.
News Article | March 2, 2017
TORONTO, ONTARIO--(Marketwired - March 2, 2017) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D)(OTC PINK:ALXDF) ("AZX" or the "Company") is pleased to report on 3 new step-out drill holes in its ongoing drill program at Zone 4 in Val d'Or, Quebec. New assays from the three holes, assaying up to 11.75 g/t gold over 0.75 metres, significantly expand the known area of the vein sets both along and across strike. Eric Owens, President and CEO of Alexandria, stated, "We have tripled the length of the vein sets since we first began drilling last fall. We are still in the early stages of this drill program, but already the success we are having suggests our geologic model is working, and we anticipate further strong results in the coming weeks." To view "Figure 1. Drill Hole Location Map, Zone 4, superimposed on geology", please visit the following link: http://media3.marketwire.com/docs/alexandria_metals_march2_figure1.pdf The multiple veins intersected by Diamond Drill Hole OAX-17-085 correlate well with those in previously released hole OAX-17-084, which is located on the same section (See Figure 2), and indicates potential widths of the gold zone between 20m-40m. Both holes have intersected several high grade gold veins: OAX-17-085, with assays up to 6.21 g/t gold over 1.00 metre, and OAX-17-084, with up to 13.8 g/t gold over 6.50 metres (See Table 1 below and Press Release February 1, 2017). To view "Figure 2. Cross Section, DDH OAX-17-084 and 085", please visit the following link: http://media3.marketwire.com/docs/alexandria_metals_march2_figure2.pdf To view "Figure 3. Longitudinal Section Showing Recently Drilled Holes", please visit the following link: http://media3.marketwire.com/docs/alexandria_metals_march2_figure3.pdf In addition, high-grade gold veins in historic holes also correlate with some of the high grade zones, such as in hole OU-5-19, which intersected 21.50 g/t gold over 3.80 meters. A re-logging and re-sampling program on the historic holes is underway in order to better resolve those data with the new geologic model. Diamond Drill Holes OAX-17-086 and OAX-17-087 are step-out holes completed below the historic open pit on the west side of Zone 4. These holes tested deeper than previous drill holes (See Figures 2 and 3) where little preexisting information about the gold zone exists. Both intersected strongly altered and sheared rock, which included many quartz veinlets. Hole 086 intersected 5.48 g/t gold over 1.50 meters at 307 meters downhole, and hole 087 intersected 11.75 g/t gold over 0.75 meters at 411 meters downhole. These results show potential for discovery of new gold veins beyond the current inferred limits of the stacked vein sets and show that the veins continue to plunge to the west. Alexandria is in the middle of a 12,500 metre drill program, currently with two drill rigs. One drill rig is working at Zone 4, where it is testing for high grade gold veins within and along the Cadillac Break shear zone. The focus of this program is to better define the continuity, grade and extent of the vein sets at shallow levels, principally above 350 metres. The second drill rig is testing targets on its Triangle Too drill program, 1-2 kilometres northwest of Zone 4, a grass-roots program similarly seeking high-grade gold veins. Alexandria will be displaying drill core from the Zone 4 drilling program at its booth at the Prospectors and Developers Association of Canada Convention in Toronto between March 5 and March 8. Please join us at Booth #2716 and find out more about our activities. Further information about the Company is available on the Company's website, www.azx.ca, or our social media sites listed below: Program design, management, and Quality Control/Quality Assurance are conducted by Alexandria's exploration group of which Phillippe Berthelot, P.Geo, is the Company's Qualified Person. Mr. Berthelot has reviewed the results in this press release. Alexandria's QA/QC program is consistent with National Instrument ("NI") 43-101 and industry best practices and has been previously addressed in NI 43-101 reports found on the Company's website or on www.sedar.com. Alexandria Minerals Corporation is a Toronto-based junior gold exploration and development company with strategic properties located in the world-class mining districts of Val d'Or, Quebec, Red Lake, Ontario and Snow Lake-Flin Flon, Manitoba. Alexandria's focus is on its flagship property, the large Cadillac Break Property package in Val d'Or, which hosts important, near-surface, gold resources along the prolific, gold-producing Cadillac Break, all of which have significant growth potential. WARNING: This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward-looking statements. 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.
News Article | February 15, 2017
Company's TotalSocial™ data solution receives patent pending alongside release of version 1.6 of its proprietary measurement system MONTREAL, QC--(Marketwired - February 10, 2017) - Engagement Labs Inc. (TSX VENTURE: EL) announced today that its TotalSocial technology is now patent pending as a result of a provisional application that was filed with the United States Patent and Trademark Office (USPTO). In addition, the Company has also announced the release of TotalSocial version 1.6, focusing on new automated reporting tools and functionalities that provide additional utility for clients. TotalSocial is the only comprehensive social data solution that delivers insights about both online and offline consumer conversations -- the most persuasive form of marketing and a proven driver of sales. Bringing together social media listening data with face-to-face conversation metrics into a single performance dashboard, TotalSocial is designed to enhance marketing ROI and increase sales. TotalSocial analytics allows marketers to track and evaluate marketing effectiveness for their brand, to benchmark against key competitors, and to learn from the most socially successful brands. TotalSocial is built on the four essential drivers of a brand's social marketing performance: volume, sentiment, brand sharing, and influence. Consumer conversations and advocacy -- online or face-to-face -- can make or break sales momentum. By using TotalSocial, marketers are equipped with the insights they need to harness the full power of social influence. The provision patent application for a Method for Measuring Social Influence of a brand for improving the Brand's Performance was filed with the United States Patent and Trademark Office and was assigned U.S. Application No. 62/437,342. This application provides Engagement Labs with protection for up to 12 months, while also allowing the Company to roll out the solution via marketing and sales. Further, Engagement Labs has continued to make improvements to the TotalSocial user interface since its first release in September. With this new release, version 1.6 users are now able save dozens of favorite reports that are automatically updated with new data releases; export data visualizations and the underlying data with the touch of a button; and dynamically modify graphics by pointing and clicking. The upgrades allow users to more efficiently and effectively uncover and share insights about their brands' social performance, both online and offline. The Company also announced its intent to satisfy its obligation to pay independent director fees for the period of September 27, 2016 to December 31, 2016 by issuing shares, pending approval from the TSX Venture Exchange. The Corporation will issue 382,809 Common Shares with a deemed value of $0.11 per share (for an aggregate value of $42,109) to the independent directors of the Corporation for services provided. Such aggregate value is the net amount owed to the independent directors after making all statutorily required source deductions. The Board has also approved the issuance of 3,769,328 restricted share units to four officers of the Corporation. One third of the restricted share units vest on each of the first, second and third anniversaries of the date of grant. Engagement Labs (TSX VENTURE: EL) is the world's first TotalSocial™ company, offering intelligent data, analytics and insights for marketers. We are leaders in tracking, measuring and benchmarking the impact of conversations happening around a brand and industry -- both online and offline. Consumer conversations are a proven driver of critical business outcomes, including sales. The patent pending TotalSocial data solution provides brands with unique insights and powerful analytics to understand online and offline social impact and drive business results. TotalSocial demonstrates to marketers how their online and offline conversation compare and contrast and helps identify areas of competitive opportunity or significant emerging threats. TotalSocial is an "always-on" proprietary scoring system, based on the most important drivers of brand performance: Volume, Sentiment, Brand Sharing and Influence. TotalSocial was built on the pillars of Engagement Labs' patented social media measurement tool and the world's only offline word of mouth tracking system for brands and tracks 500 brands within the U.S. across 17 major industry categories, and 350 brands in the UK. "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
News Article | February 21, 2017
BELOEIL, QC, Feb. 21, 2017 /PRNewswire/ - Demers Ambulance, a leader in ambulance manufacturing, recently delivered a Demers MXP 150 ambulance to West Park Hospital in Cody, Wyoming. The new vehicle is West Park Hospital's fourth Demers ambulance. Configured for a 4x4 or 4x2 truck...
News Article | February 22, 2017
Thomas D’Innocenzi, Founder of Nova Advisors has announced a unique consulting service that allows small and medium size enterprises to compete globally and rapidly grow market share cost effectively. The Global Sourcing and Business Development service will utilize their locations in Asia and the United States along with a very large network of buyers and suppliers that has been developed over 25 years. “Having built and managed sourcing and business teams for large companies throughout my career, I recognized an opportunity to offering a more streamlined and cost effective service that would allow companies to compete globally where they could not budget for it before” explained Founder and Principal Consultant Thomas D’Innocenzi. “Up until now, the ability to setup a Global Sourcing operation in Asia for low cost contract manufacturing solely belonged to large corporations that had the capital. In addition, the ability to market goods and services into large regions such as Southeast Asia with a population of 700 million solely belonged to large corporations that had the capital. Now, I give small to medium size enterprises the ability to compete in Global Sourcing and Business Development in Southeast Asia, China and beyond with our ability to leverage our network, locations, contacts, and knowledge to quickly gain market share at a much lower cost threshold.” The Business Development segment of the service in Asia and the US includes rep office creation and management, salesforce development, product regulatory compliance, local legal support, local branding, local advertising, sales and product support, market planning, competitive analysis. The Global Sourcing segment of the service which addresses the whole Asia-Pacific region includes product specification management, supplier vetting (identification, regulatory compliance, GMP, ISO, QA, QC), backup supplier and risk management, pricing and contract negotiations, commodity tracking, category management, product management, creation and management of local Asian global sourcing offices. The Southeast Asia location offers US and European customers an immediate local presence when utilizing the new service for either Business Development of Global Sourcing in Asia. The Bangkok-based office has easy reach through SE Asia and China and is very cost effective in operation. Areas serviced from this location include Shanghai, Seoul, Hong Kong, Bangkok, Ho Chi Minh, Vientiane, Kuala Lumpur, Singapore, Manila, Cebu. The US office location offers Asia-based clients a cost-effective US market entry point for their products or services. We understand the needs of the local Asian culture and the business acumen of US buyers and we create and execute a methodology of closing deals that are mutually beneficial and promotes trade. Based in Jacksonville, Florida and Bangkok, Thailand, Thomas D’Innocenzi, Founder and Principal Consultant of Nova Advisors helps companies compete globally by offering expert Global Sourcing and Business Development consulting services. Mr. D’Innocenzi has over 30 years of experience in international trade and business development with multinational corporations in the US and Asia. He has worked and lived in several countries in the Asia Pacific region. With locations in the United States and Asia and with a large global network of buyers and suppliers, Mr. D’Innocenzi offers a value-added unique service for customers seeking to effectively expand their market footprint globally while managing risk. More information about the business can be found at http://www.novaadvisors.com. Contact phone numbers are United States: +1.904.307.6414 and Asia: +668.7.800.1015 For more information, please visit http://www.thomasdinnocenzi.com/