FREEHOLD, NJ--(Marketwired - Nov 25, 2013) - Mabwe Minerals Inc. (
In addition, the forecast includes all expected logistic costs based on an FOB: Port of Beira delivery position. Two key time-based items are essential to meeting these numbers. Namely, funding for the processing equipment and the integration of this equipment expected to be in operation during the 2nd Qtr. 2014. It should also be noted that initial small volume orders from Steinbok Minerals include provisions for prepayment. Based on tonnages available for invoice this quarter, Mabwe Minerals anticipates 4th quarter revenues in the range of $500K to $600K.
As a follow up to last week's Letter to Shareholders, we are pleased to provide key quarterly objectives, production tonnage estimates, along with gross revenue and gross profit numbers that include both barite and limestone. We expect to share additional news concerning our limestone business opportunities by the 1st quarter. However, assumptions have been included in our revenue forecast through December 2014. All first quarter estimates include additional tonnages produced during the 4th quarter this year.
To view the latest forecasts and estimates, visit http://dtg.fm/mbmi-forecasts-11-13.
First Quarter Objectives:
- Maintain barite production rate aligned with Steinbock Minerals' business plan
- Integrate into land transportation systems to the Port of Beira, Mozambique
- Continue infrastructure development including upgrades at the Shamva Rail Depot
- Integrate into the Port of Beria
- Complete installation of barite/limestone test labs
Second Quarter Objectives:
- Integrate processing equipment
- Increase production rate
- Reduce production cost
- Increase land transportation tonnage to the Port
Third and Fourth Quarter Objectives:
- Stabilize production rates
- Continue to increase land transportation tonnage to the Port of Beira
- Integrate customized jigging systems
- Expand land transportation capacity > 140,000 tons provided by PHI Commodities
- Continue to implement production cost improvements
- Implement land transportation and port cost reduction programs.
As mentioned in the recent Letter to Shareholders, initial production and shipment rates will align with Steinbock Minerals' business plan in that initial customers will begin receiving small lot shipments for final qualification followed by medium lot shipments for post-delivery qualification prior to engaging in larger quarterly shipments. We want to re-emphasize the importance of taking the additional delivery steps to ensure Dodge Mine barite enters the supply-line chain as a reputable source of supply.
During the second quarter, the integration of key capital equipment will materially increase production rates while lowering production costs, leading to continued quarter-to-quarter revenue growth through the rest of the year. As production volumes continue to increase during the 2nd half of next year, Mabwe Minerals will initiate cost reduction programs targeting land transportation costs and port fees. At Dodge Mine, WGB Kinsey will also continue to implement cost reduction programs. Infrastructure programs will also be completed by the 2nd half of next year moving into a maintenance mode having completed all employee housing, management accommodations, staff facilities along with completing all operational infrastructure requirements including processing facility sites, test labs and jigging production sites.
Sincerely,
Al Pietrangelo
MBMI President & CEO
About Mabwe Minerals Inc.
Mabwe Minerals Inc. is a U.S. based natural resources and hard asset company engaged in the mining, logistics and commercial sales of industrial minerals and metals, with first focus on barite. The company's operations are conducted through its Zimbabwe parent/holding affiliate, Mabwe Corporation (Private) Limited, which includes wholly owned subsidiary Mabwe Minerals Zimbabwe (Private) Limited and minority owned WGB Kinsey & Company.
To learn more about Mabwe Minerals, visit: www.mabweminerals.com or www.dtg.fm/MBMI-Presentation.
Notice Regarding Forward-Looking Statements
Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" ("FLS") within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. FLS include statements predictive in nature, depending upon or referring to future events / conditions, including words like "believes," "anticipates," "intends," "plans," "expects," and similar expressions. Statements concerning future financial performance (revenues, earnings, and growth rates), ongoing business strategies / prospects, and future actions, which may be provided by management, are also FLS as defined by the Act. The actual and any future results, performance or achievements of the Company, expressed or implied, may be materially different and vary significantly for different reporting periods due to FLS that involve known and unknown risks and other factors. Management believes that the assumptions made and expectations reflected in the FLS are reasonable. There is no assurance that the underlying assumptions will prove to be correct and the actual future results may be different from expectations expressed above. These statements are not guarantees of future performance. Mabwe Minerals Inc. has no specific intention to update these statements.
Contact Information:
Contact:
J. Louis Schlegel IV
Vice President: Business Development
J4@MabweMinerals.com