Opta Minerals Inc. Reports Second Quarter Results for Fiscal 2015

WATERDOWN, ONTARIO--(Marketwired - Aug 14, 2015) - Opta Minerals Inc. ( OPM.TO ), today announced results for the three and six months ended June 30, 2015. All figures are reported in U.S. dollars and are in accordance with International Financial Reporting Standards (IFRS), except where otherwise noted.

	3 months		3 months					6 months		6 months
	ended		ended					ended		ended
	June 30,		June 30,		Increase			June 30,		June 30,		Increase
	2015		2014		(Decrease)		%	2015		2014		(Decrease)		%
Revenue	$	29,674	$	35,299	$	(5,625)	-15.9%	$	59,131	$	69,788	$	(10,657)	-15.3%
Gross Profit		3,718		6,511		(2,793)	-42.9%		7,461		11,408		(3,947)	-34.6%
		12.5%		18.4%		-5.9%			12.6%		16.3%		-3.7%
EBITDA 1		448		3,151		(2,703)	-85.8%		1,401		5,421		(4,020)	-74.2%
EBIT 2		(1,136)		1,552		(2,688)	-173.2%		(1,459)		2,331		(3,790)	-162.6%
Income (Loss)		(4,271)		727		(4,998)	-687.5%		(5,028)		473		(5,501)	-1163.0%
EPS	$	(0.24)	$	0.04	$	(0.28)		$	(0.28)	$	0.03	$	(0.31)

1. EBITDA is a non-IFRS measure: refer to Footnotes

2. EBIT is a non-IFRS measure; refer to Footnotes

Bernhard Rumbold, Interim President and CEO of Opta Minerals, noted "The Company is in the middle of restructuring its business which includes closing unprofitable locations, reducing costs, simplifying operations and improving the balance sheet by reducing inventory thereby improving liquidity. We have made significant progress in the second quarter and expect to complete most of our restructuring activities by the end of the year. The restructuring impact is isolated to the Industrial Minerals Group and Corporate office, with limited impact on the Steel and Magnesium Group. The financial results reflect the changes we are making and include a number of one time and non-cash costs as a result of the restructuring. Excluding these restructuring costs EBIT would be $1,091 for the quarter and EBITDA would be $2,180. Further details are provided below. We are very pleased with the efforts to improve the balance sheet and free up resources.

We have seen markets and sales improve in the latter half of the second quarter within the Steel and Magnesium Group and expect this momentum to continue for the balance of the year. We will continue to invest in people and capital within Steel and Magnesium and within segments of Industrial Minerals, such as garnet, where we believe we have a competitive advantage and can earn superior returns.

We continue to pursue strategic alternatives for the Company."

Operational and Financial Highlights:

• Second quarter revenue in the Steel and Magnesium segment decreased 10.9% from the comparable quarter in 2014. On a year to date basis revenues have decreased 9.0% over the comparable period in 2014. Excluding the effects of exchange rate movements in the Canadian dollar and Euro against the U.S. dollar, revenues have fallen 5.3% and 3.0% versus the previous quarter and year to date, respectively. The Steel and Magnesium segment has primarily been impacted by a slow down in the steel industry.
  
  

• The Industrial Minerals segment revenue decreased approximately 22% on a quarter and year to date basis and 18% excluding the impact of exchange as compared to the prior year. The decline is partially due to restructuring as we eliminate locations and product lines that do not provide an adequate return. The Company's focus is to complete these restructuring efforts by the end of the year, but also invest in more sales resources in areas where we believe there is growth.
  
  

• Gross profit includes charges of $768 in the quarter for additional inventory reserves and expected remediation costs related to the closure of facilities and the liquidation of certain inventories. Excluding these costs, gross margins are 15.1% for the quarter and 13.9% for the year to date, respectively. Margins have also been impacted by lower sales prices to liquidate inventory and lower volumes affecting plant utilization. We believe margins on core products with the Steel Group are relatively the same as the prior year.
  
  

• Selling, general and administrative expenses (SGA) were $4,860 or 16.4% as a percent of revenues, compared to $4,249 or 12.0% of revenues in the prior year quarter. SGA includes approximately $965 in restructuring costs including severance accrual for the former CEO. Excluding these restructuring costs SGA were 12.1% for the year as a percent of revenues, compared to 12.3% in the prior year. SGA is impacted by the strengthening US dollar with corporate costs primarily in Canadian dollars. The Company is targeting 10% SGA as a percent of revenues.
  
  

• The Company had a write-down of property, plant and equipment in the amount of $495 related to the Company's impairment analysis for one facility in the Industrial Minerals segment.
  
  

• Results include non-cash foreign exchange gains of $317 in the current quarter compared to foreign exchange losses of $616 in the prior year comparative quarter. Foreign exchange losses were $465 on a year to date basis as compared to $365 in the previous year. These were driven by fluctuations in the US dollar against both the Canadian dollar and Euro.
  
  

• Working capital, excluding the reclassification of long-term borrowings of $26.3 million, at June 30, 2015 amounted to $18.2 million and total assets were $104.2 million, as compared to $21.8 million and $117.7 million, respectively, at December 31, 2014. Working capital is considerably lower than December 31, 2014 driven by the Company's efforts to significantly lower inventories. The inventory reduction generates improved cash flow with more available liquid assets in working capital.
  
  

• Long-term borrowings of $26.3 million have been reclassified to current borrowings as a result of the default of certain financial covenants stipulated under the Company's credit agreement. Subsequent to June 30, 2015, the Company obtained a waiver in respect of the covenant default from the syndicate of banks. As consideration for the waiver the Company is to comply with certain additional financial covenants. The syndicate of banks extended the maturity date of the revolving credit facility from the August 14, 2015 annual renewal date to October 2, 2015.
  
  

• The Company will require the continued support from its current financial lenders and, effective October 3, 2015, Opta Minerals will require a further extension of its revolving term credit facility and an additional waiver of financial covenants, if breached, or an alternative source of financing. Failure to meet financial covenants or repay the revolving credit facility on maturity would constitute an event of default under the credit agreement, unless the lenders agree to a waiver or further amendment. The Company believes that it will comply with the additional financial covenants and that an extension is likely, but there can be no assurance that it will be provided or that alternative sources of financing on terms favourable to the Company could be obtained. The limited extension of the revolving term credit facility to October 2, 2015 has required the inclusion of additional disclosure in the Company's interim condensed consolidated financial statements as at and for the six-month period ended June 30, 2015.
  
  

• The debt to equity ratio at June 30, 2015 was 1.07 to 1.00, and at December 31, 2014 was 1.00 to 1.00.

For further details, please refer to the Company's interim consolidated financial statements and related Management's Discussion and Analysis.

Opta Minerals is a vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries. The Company has production and distribution facilities in Ontario, Quebec, Saskatchewan, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Idaho, France, Slovakia and Germany.

FOOTNOTES:

Earnings before income taxes and interest ("EBIT"); and earnings before interest, income taxes, depreciation and amortization ("EBITDA") as defined below, are both non-IFRS earnings measures that do not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.

	For the three				For the six
	Months Ended				Months Ended
	June 30				June 30
	2015		2014		2015		2014
	$		$		$		$
Income (Loss) for the Period	(4,271	)	727		(5,028	)	473
Finance Expense	1,829		847		2,692		1,748
Income Tax Expense (Recovery)	1,306		(22	)	877		110
Depreciation and Amortization	1,273		1,505		2,551		2,984
Property, Plant and Equipment Write-down	495		-		495		-
Fair Value Adjustments to Contingent Consideration	(184	)	94		(186	)	106
EBITDA 1	448		3,151		1,401		5,421
Subtract:
Depreciation and Amortization	1,273		1,505		2,551		2,984
Property, Plant and Equipment Write-down	495		-		495		-
Fair Value Adjustments to Contingent Consideration	(184	)	94		(186	)	106
EBIT 2	(1,136	)	1,552		(1,459	)	2,331

Notes

1. The term "EBITDA" refers to earnings before deducting finance expense, income taxes, depreciation and amortization. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration non-cash asset depreciation and amortization. EBITDA is not a recognized measure under International Finance Reporting Standards (IFRS), and accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. The Company's method of calculating EBITDA may differ from other issuers and accordingly, EBITDA may not be comparable to similar measures presented by other issuers.

1. The term "EBIT" refers to earnings before income taxes and finance expense. The Company believes that EBIT is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed or taxed. EBIT is a non-IFRS earnings measure that does not have standardized measures prescribed by IFRS, and therefore may not be comparable to similar measures presented by other publicly traded companies.

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to: the Company's restructuring activities and the anticipated benefits to be derived therefrom, the expected timing for the completion of the Company's restructuring activities; anticipated improvements within the Steel and Magnesium Group; and proposed investments in people and capital within the Steel and Magnesium Group and certain segments of the Infrastructure Group. Wherever possible, words such as "may", 'would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: the impact of general economic conditions; the impact of specific industry conditions; the inability of the Company to successfully integrate recently acquired businesses or to achieve the anticipated benefits from such acquisitions; the risk of unexpected costs or liabilities relating to acquisitions; currency fluctuations and exchange rate risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; mining risks; and the other risks identified in the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com ).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Opta Minerals Inc.
Interim Condensed Consolidated Balance Sheets
As At June 30, 2015 and December 31, 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number of shares)
			June 30, 2015			December 31, 2014
Assets
Current
	Cash and cash equivalents		$	2,232		$	2,170
	Trade receivables, other receivables and prepayments			19,846			20,236
	Inventories			27,924			34,486
	Income taxes receivable			890			996
				50,892			57,888
Property, Plant and Equipment				19,568			21,926
Intangible Assets				24,639			26,827
Goodwill				9,060			9,447
Deferred Income Tax Assets				-			1,645
			$	104,159		$	117,733
Liabilities
Current
	Trade and other payables		$	12,980		$	17,216
	Borrowings			44,811			17,492
	Provisions			889			772
	Other liabilities			64			492
	Income taxes payable			294			136
				59,038			36,108
Borrowings				193			30,103
Derivative Financial Instruments				457			285
Provisions				527			447
Other Liabilities				67			242
Deferred Income Tax Liabilities				1,850			3,040
				62,132			70,225
Equity Attributable to the Shareholders of the Company
Capital Stock
	Authorized without limit as to number -
		Preference shares (without par value)
		Common shares
	Issued -
		18,129,566 common shares (December 31, 2014 - 18,125,164)		17,911			17,905
Contributed Surplus				4,817			4,696
Accumulated Other Comprehensive Loss				(2,071	)		(1,491	)
Retained Earnings				21,370			26,398
				42,027			47,508
			$	104,159		$	117,733

Opta Minerals Inc.
Interim Condensed Consolidated Statements of (Loss) Income
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)
		June 30, 2015			June 30, 2014
Revenue		$	29,674		$	35,299
Cost of Goods Sold			25,956			28,788
Gross Profit			3,718			6,511
Expenses
	Selling, general and administrative		4,860			4,249
	Property, plant and equipment write-down		495			-
	Fair value adjustments to contingent consideration		(184	)		94
	Foreign exchange (gain) loss		(317	)		616
			4,854			4,959
Income (Loss) Before Finance Expense and Income Taxes			(1,136	)		1,552
Finance expense			1,829			847
Income (Loss) Before Income Taxes			(2,965	)		705
Income tax expense (recovery)			1,306			(22	)
Income (Loss) for the Period Attributable to the Shareholders of the Company		$	(4,271	)	$	727
Earnings (Loss) per share for the period - basic and diluted		$	(0.24	)	$	0.04

Opta Minerals Inc.
Interim Condensed Consolidated Statements of (Loss) Income
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts)
		June 30, 2015			June 30, 2014
Revenue		$	59,131		$	69,788
Cost of Goods Sold			51,670			58,380
Gross Profit			7,461			11,408
Expenses
	Selling, general and administrative		8,146			8,606
	Property, plant and equipment write-down		495			-
	Fair value adjustments to contingent consideration		(186	)		106
	Foreign exchange loss		465			365
			8,920			9,077
Income (Loss) Before Finance Expense and Income Taxes			(1,459	)		2,331
Finance expense			2,692			1,748
Income (Loss) Before Income Taxes			(4,151	)		583
Income tax expense			877			110
Income (Loss) for the Period Attributable to the Shareholders of the Company		$	(5,028	)	$	473
Earnings (Loss) per share for the period - basic and diluted		$	(0.28	)	$	0.03

Opta Minerals Inc.
Interim Condensed Consolidated Statements of Comprehensive (Loss) Income
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
		June 30, 2015			June 30, 2014
Income (Loss) for the Period Attributable to the Shareholders of the Company		$	(4,271	)	$	727
Other Comprehensive Income, net of income taxes
Items that may be reclassified subsequently to profit or loss
	Unrealized gain on translation of foreign operations		130			53
	Unrealized gain on derivative financial instruments designated as cash flow hedges		67			24
	Ineffective portion of derivative financial instruments		291			-
	Other comprehensive income, net of income taxes		488			77
Comprehensive (Loss) Income Attributable to the Shareholders of the Company		$	(3,783	)	$	804

Opta Minerals Inc.
Interim Condensed Consolidated Statements of Comprehensive (Loss) Income
For the Six Months Ended June 30, 2014 and 2013
(Unaudited)
Expressed in Thousands of US Dollars
		June 30, 2015			June 30, 2014
Income (Loss) for the Period Attributable to the Shareholders of the Company		$	(5,028	)	$	473
Other Comprehensive (Loss) Income, net of income taxes
	Items that may be reclassified subsequently to profit or loss
	Unrealized (loss) gain on translation of foreign operations		(742	)		147
	Unrealized loss on derivative financial instruments designated as cash flow hedges		(129	)		(34	)
	Ineffective portion of derivative financial instruments		291			-
	Other comprehensive (loss) income, net of income taxes		(580	)		113
Comprehensive (Loss) Income Attributable to the Shareholders of the Company		$	(5,608	)	$	586

Opta Minerals Inc.

Interim Condensed Consolidated Statements of Changes in Equity

For the Six Months Ended June 30, 2015 and 2014

(Unaudited)

Expressed in Thousands of US Dollars (except per share amounts and number of shares)

										AOCI* -
		Number of			Contributed					Foreign
		Shares -			Surplus -		AOCI* -			Currency
		Capital	Capital			Share-based	Cash Flow			Translation			Retained			Total
		Stock	Stock		Payments		Hedge			Reserve			Earnings			Equity
At January 1, 2015		18,125,164	$	17,905	$	4,696	$	(210	)	$	(1,281	)	$	26,398		$	47,508
Comprehensive Loss
	Loss for the period	-		-		-		-			-			(5,028	)		(5,028	)
	Unrealized loss on translation of foreign operations	-		-		-		-			(742	)		-			(742	)
	Unrealized loss on derivative financial instruments designated as cash flow hedges	-		-		-		(129	)		-			-			(129	)
	Ineffective portion of derivative financial instruments	-		-		-		291			-			-			291
Total Comprehensive (Loss) Income		-		-		-		162			(742	)		(5,028	)		(5,608	)
Transactions with Shareholders
	Employee share purchase plan	4,402		6		-		-			-			-			6
	Share-based payment expense	-		-		121		-			-			-			121
Total Transactions with Shareholders		4,402		6		121		-			-			-			127
At June 30, 2015		18,129,566	$	17,911	$	4,817	$	(48	)	$	(2,023	)	$	21,370		$	42,027
At January 1, 2014		18,111,247	$	17,882	$	4,358	$	(230	)	$	(632	)	$	28,280		$	49,658
Comprehensive Income (Loss)
	Income for the period	-		-		-		-			-			473			473
	Unrealized gain on translation of foreign operations	-		-		-		-			147			-			147
	Unrealized loss on derivative financial instruments designated as cash flow hedges	-

- - (34 ) - - (34 ) Total Comprehensive Income (Loss) - - - (34 ) 147 473 586 Transactions with Shareholders Employee share purchase plan 7,365 12 - - - - 12 Share-based payment expense - - 206 - - - 206 Total Transactions with Shareholders 7,365 12 206 - - - 218 At June 30, 2014 18,118,612 $ 17,894 $ 4,564 $ (264 ) $ (485 ) $ 28,753 $ 50,462

*AOCI - Accumulated Other Comprehensive Income

Opta Minerals Inc.
Interim Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars (except per share amounts and number of shares)
			June 30, 2015			June 30, 2014
Cash Provided by (Used in) -
	Operating Activities
	Income (loss) for the period		$	(5,028	)	$	473
	Items not affecting cash:
		Depreciation of property, plant and equipment		1,544			1,867
		Amortization of intangible assets		1,007			1,117
		Property, plant and equipment write-down		495			-
		Share-based payment expense		121			206
		Loss (gain) on disposal of property, plant and equipment		(20	)		4
		Fair value adjustments to contingent consideration		(186	)		106
		Non-cash interest charges		806			-
		Deferred income taxes		594			(427	)
				(667	)		3,346
	Changes in non-cash working capital
		Trade receivables, other receivables and prepayments		(271	)		(5,799	)
		Inventories		5,762			6,941
		Trade and other payables		(3,614	)		(1,849	)
		Provisions		218			108
		Income taxes receivable (payable)		269			115
				1,697			2,862
	Financing Activities
		Proceeds from issuance of common shares - net of issuance costs		6			12
		Proceeds from borrowings - net of deferred finance charges		1,547			-
		Repayment of borrowings		(2,169	)		(2,534	)
		Repayment of finance lease liabilities		(202	)		(159	)
				(818	)		(2,681	)
	Investing Activities
		Additions to property, plant and equipment		(464	)		(961	)
		Proceeds on disposal of property, plant and equipment		109			12
		Additions to intangible assets		-			(37	)
		Additional contingent consideration paid on acquisitions		(393	)		(260	)
				(748	)		(1,246	)
Effect of Foreign Exchange Loss on Cash and Cash Equivalents				(69	)		(11	)
Net Increase (Decrease) in Cash and Cash Equivalents				62			(1,076	)
Cash and Cash Equivalents
	Beginning of Period			2,170			4,084
	End of Period		$	2,232		$	3,008

Opta Minerals Inc.
Interim Segmented Information
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
	Three Months Ended June 30, 2015
	Steel and				Industrial
	Magnesium				Minerals			Corporate			Total
External revenue by market
Canada	$	2,802		$	2,671		$	-		$	5,473
US		12,299			5,467			-			17,766
Europe		2,174			2,168			-			4,342
Other		117			1,976			-			2,093
Total revenue from external customers		17,392			12,282			-			29,674
Segment income (loss) before corporate expenses, property, plant and equipment write-down, fair value adjustments to contingent consideration, finance expense and income taxes		1,961			(57	)		-			1,904
Property, plant and equipment write-down		-			(495	)		-			(495	)
Fair value adjustments to contingent consideration		184			-			-			184
Corporate expenses		-			-			(2,729	)		(2,729	)
Segment income (loss) before finance expense and income taxes		2,145			(552	)		(2,729	)		(1,136	)
Finance expense		-			-			-			(1,829	)
Income tax expense		-			-			-			(1,306	)
Loss for the period		-			-			-			(4,271	)
Depreciation of property, plant and equipment		468			272			31			771
Amortization of intangible assets		483			-			19			502
Expenditures on property, plant and equipment	$	128		$	206		$	-		$	334
Opta Minerals Inc.
Interim Segmented Information
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Six Months Ended June 30, 2015
		Steel and			Industrial
		Magnesium			Minerals			Corporate			Total
External revenue by market
Canada	$	6,078		$	4,865		$	-		$	10,943
US		24,471			10,259			-			34,730
Europe		4,728			4,401			-			9,129
Other		169			4,160			-			4,329
Total revenue from external customers		35,446			23,685			-			59,131
Segment income (loss) before corporate expenses, property, plant and equipment write-down, fair value adjustments to contingent consideration, finance expense and income taxes		3,669			(1,856	)		-			1,813
Property, plant and equipment write-down		-			(495	)		-			(495	)
Fair value adjustments to contingent consideration		186			-			-			186
Corporate expenses		-			-			(2,963	)		(2,963	)
Segment income (loss) before finance expense and income taxes		3,855			(2,351	)		(2,963	)		(1,459	)
Finance expense		-			-			-			(2,692	)
Income tax expense		-			-			-			(877	)
Loss for the period		-			-			-			(5,028	)
Total assets as at June 30, 2015		60,318			41,989			1,852			104,159
Depreciation of property, plant and equipment		939			541			64			1,544
Amortization of intangible assets		967			-			40			1,007
Goodwill and intangible assets as at June 30, 2015		33,635			-			64			33,699
Expenditures on property, plant and equipment	$	158		$	293		$	13		$	464
Opta Minerals Inc.
Interim Segmented Information
For the Three Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Three Months Ended June 30, 2014
		Steel and			Industrial
		Magnesium			Minerals			Corporate			Total
External revenue by market
Canada	$	3,384		$	3,176		$	-		$	6,560
US		12,582			7,227			-			19,809
Europe		3,552			3,012			-			6,564
Other		2			2,364			-			2,366
Total revenue from external customers		19,520			15,779			-			35,299
Segment income (loss) before corporate expenses, finance expense and income taxes		2,984			1,229			-			4,213
Fair value adjustments to contingent consideration		(94	)		-			-			(94	)
Corporate expenses		-			-			(2,567	)		(2,567	)
Segment income (loss) before finance expense and income taxes		2,890			1,229			(2,567	)		1,552
Finance expense		-			-			-			(847	)
Income tax recovery		-			-			-			22
Income for the period		-			-			-			727
Depreciation of property, plant and equipment		459			447			40			946
Amortization of intangible assets		540			1			18			559
Expenditures on property, plant and equipment	$	663		$	61		$	5		$	729
Opta Minerals Inc.
Interim Segmented Information
For the Six Months Ended June 30, 2015 and 2014
(Unaudited)
Expressed in Thousands of US Dollars
Six Months Ended June 30, 2014
		Steel and			Industrial
		Magnesium			Minerals			Corporate			Total
External revenue by market
Canada	$	7,089		$	5,369		$	-		$	12,458
US		24,909			14,832			-			39,741
Europe		6,943			6,323			-			13,266
Other		2			4,321			-			4,323
Total revenue from external customers		38,943			30,845			-			69,788
Segment income (loss) before corporate expenses, fair value adjustments to contingent consideration, finance expense and income taxes		5,486			704			-			6,190
Fair value adjustments to contingent consideration		(106	)		-			-			(106	)
Corporate expenses		-			-			(3,753	)		(3,753	)
Segment income (loss) before finance expense and income taxes		5,380			704			(3,753	)		2,331
Finance expense		-			-			-			(1,748	)
Income tax expense		-			-			-			(110	)
Income for the period		-			-			-			473
Total assets as at June 30, 2014		68,997			53,121			3,713			125,831
Depreciation of property, plant and equipment		884			902			81			1,867
Amortization of intangible assets		1,078			1			38			1,117
Goodwill and intangible assets as at June 30, 2014		39,823			646			117			40,586
Expenditures on property, plant and equipment	$	828		$	127		$	6		$	961