Business
Whitemud Resources Reports 2010 First Quarter Financial Results
Whitemud Resources Reports 2010 First Quarter Financial Results
About this update from Whitemud Resources, Inc. Class A
[{"type":"text","content":"\n\n\n\n May 31, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n Whitemud Resources Inc. ("Whitemud" or "the Company") (TSXV:WMK) provides summary financial results and an operations update for the three months ended March 31, 2010.\nFinancial highlights and results for the quarter ending March 31, 2010:\n\n\n >\n\n\nSubsequent to the end of the quarter a settlement was reached over a dispute between the Company and contractors arising from refractory failures in the Company's kiln during the start-up of the plant in 2008. As a result, Whitemud received $630,000, which eliminated a payable of $385,000 and provided net $245,000 in cash.\nThe Company continues to move towards the completion of a supply and distribution agreement with a key North American concrete industry supplier for the distribution of Whitemud(MK). The completion of this agreement would bring additional resources to marketing metakaolin in North America and is expected to help accelerate sales growth. This partner has initiated discussions to supply Whitemud(MK) for a number of large projects and applications in the U.S. Whitemud expects the two parties to complete a supply and distribution agreement in the second quarter of 2010 which is anticipated to lead to additional sales by the third quarter.\nThe Company recently initiated shipments to a new customer in Ontario for use in ready mixed concrete and other concrete products. Sales to the oil well service industry are also expected to grow significantly in 2010. Whitemud continues to focus on increasing the number of customers and the scope of applications, including into the U.S for its Whitemud(MK) product.\nFirst quarter sales were up a modest 60%. This increase was during the low activity levels associated with the seasonality of the construction industry. Whitemud(MK) has demonstrated cost-effective performance benefits in a growing number of projects and applications and is expected to translate into good sales growth in 2010. The three main drivers of sales growth are increased use in the Canadian construction industry, growth in oil well services industry, and sales to the U.S. through the new marketing relationship.\nThe outlook for the Company continues to improve based on growing interest fo...