Business
WGI Heavy Minerals Announces First Quarter Earnings and 2010 AGM Results
WGI Heavy Minerals Announces First Quarter Earnings and 2010 AGM Results
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\n May 11, 2010 (Canada NewsWire Group) -- WGI Heavy Minerals, Incorporated ("WGI") (TSX: WG) today reported first-quarter earnings of $0.006 per share ($0.14 million), compared to a loss of ($0.006) per share ($0.14 million) in the same period last year. In addition at the Annual General Meeting held on April 30th in Toronto, the Company's nominees to the Board of Directors received overwhelming support. At the meeting the Shareholder's Rights Plan was defeated by 53.4% of the vote.\n\nOverview\n\nThe first quarter of 2010 has shown noticeable improvement over 2009 as revenues increased 37% over the same quarter in 2009 and 9% over the fourth quarter of 2009. WGI continues to improve its market position as total abrasive volumes are up 27% over the last quarter of 2009 and 53% over the same period year over year. WGI gross margins remained steady at 23.5% compared with the first quarter of 2009. Abrasive pricing remains under pressure in the first quarter declining 7% year over year, although pricing for the Company's unique Emerald Creek Garnet remains strong. Offsetting the decline in abrasive margin has been a lift in consumable waterjet parts revenues and margins in 2010.\nIn 2009 new customers and sales channels were identified. As a result, the Company has started to gain market share in 2010 and plans to continue down that path as the economy strengthens. The Company will continue to expand its reach through the addition of salespersons both in the USA and Germany.\nImprovements in operating efficiency through lean manufacturing techniques allowed Emerald Creek Garnet ("ECG") to operate over the winter months and generate positive cash flow from operations in the first quarter of 2010. Improving waterjet parts sales have positively impacted the bottom line for the Company. ECG is permitting areas previously identified in 2006 and 2007 as possible resource targets as well as looking at exploration areas. The Company's waterjet operations are rejuvenated and the Company is looking to strengthen its position within the market by adding new product lines and partnering with other waterjet companies in the industry to strengthen its bottom line.\nTotal expenses for the first quarter of 2010 increased by 17% over the same three-month period in 2009. Total expenses were 21% of revenues down from 25% of...