Leading Edge Materials Reports Fiscal 2018 Results
Leading Edge Materials Reports Fiscal 2018
Results
VANCOUVER
,
Jan. 24, 2019
/CNW/ -
Leading Edge Materials Corp.
("
Leading Edge Materials
" or
the "
Company
") (
TSXV: LEM
) (
Nasdaq First North: LEMSE
) (
OTCQB: LEMIF
) is pleased to announce
results for the year ending
October 31, 2018
. All references to dollar amounts in this release are in Canadian
dollars.
Highlights
During the last financial year, the Company has achieved a range of important milestones:
Commenced trading on the Nasdaq First North in
Stockholm
on
January 22, 2018
;
Completed numerous graphite purification and spheronisation test programs;
Established a Romanian exploration joint venture with 51% ownership focused on cobalt and other energy
metals;
Commenced detailed study work on a high purity graphite demonstration plant;
Produced kg's of spherical high purity graphite sample; and
Secured the exploration permit for the Norra Kärr REE project;
Blair Way
, President and CEO, stated
"While 2018 was a challenging year for mining markets, the Company
has continued to make good progress on the Woxna graphite project in
Sweden
and within our new
Romanian exploration alliance."
As announced
23
rd
January 2019
, Mr
Blair Way
has resigned as CEO, President and Director of Leading
Edge Materials effective
January 31
st
2019. Mr Way will continue to be available as a consultant to the
Company on an as needs basis. Mr
Mark Saxon
, Director, has been named interim CEO and President.
Selected Financial Data
The following selected financial information is derived from the audited consolidated financial statements of the
Company prepared in accordance with IFRS.
Year Ended October 31,
October 31,
2018
$
October 31,
2017
$
October 31,
2016
$
Operations
Expenses
(4,493,336)
(2,772,709)
(3,567,926)
Other items
107,051
(147,319)
113,032
Net loss
(4,386,285)
(2,920,028)
(3,454,894)
Basic and diluted loss per share
(0.05)
(0.03)
(0.07)
Dividends per share
Nil
Nil
Nil
Balance Sheet
Working capital
960,707
3,490,760
2,436,641
Total assets
35,075,446
37,915,728
36,037,751
Total non-current liabilities
(8,306,212)
(8,330,321)
(8,072,937)
Financial Condition / Capital Resources
During fiscal 2018 the Company recorded a net loss of
$4,386,285
and, as at
October 31, 2018
, the
Company had an accumulated deficit of
$27,054,324
and working capital of
$960,707
. The Company
maintains its Woxna Graphite Mine on a "production-ready" basis to minimize costs. The Company currently
has no significant budget allocated for the Norra Kärr Project. Although the Company has sufficient funding to
meet anticipated levels of corporate administration and overheads for the ensuing twelve months, it anticipates
that it will need additional capital to maintain current levels of research and development, recommence
operations at the Woxna Graphite Mine and/or upgrade the plant to produce value added production. There is
no assurance such additional capital will be available to the Company on acceptable terms or at all. In the
longer term the recoverability of the carrying value of the Company's long-lived assets is dependent upon the
Company's ability to preserve its interest in the underlying mineral property interests, the discovery of
economically recoverable reserves, the achievement of profitable operations and the ability of the Company to
obtain financing to support its ongoing exploration programs and mining operations. Whether the Company can
generate positive cash flow and, ultimately, achieve profitability is uncertain. These uncertainties may cast
significant doubt upon the Company's ability to continue as a going concern.
Subsequent to
October 31, 2018
the Company completed a private placement financing of 6,027,855 units for
gross proceeds of
$1,687,800
.
Financings
No financings were undertaken during fiscal 2018. The Company issued 400,000 common shares on the
exercise of share options for
$156,000
.
During fiscal 2017 the Company completed private placement financings of 4,004,222 units at
$0.45
per unit
and 3,636,364 units at
$0.55
per unit for total gross proceeds of
$3,801,900
. The net proceeds from these
financings were used to conduct testwork toward the production of high-purity graphite at the Woxna graphite
project, to further lithium and cobalt exploration activities and for general corporate requirements. In addition,
the Company issued 1,026,916 common shares on the exercise of share options and warrants for
$427,491
.
Summary and Outlook
Work undertaken by Leading Edge Materials during fiscal 2018 has been in line with the Board of Directors
strategic roadmap to support and benefit from the electrification of transportation in Europe. Key elements of
the Company's ongoing investment strategy include: high value product development work on the Woxna
graphite mine; increasing community engagement at the Norra Karr rare earth element project while identifying
project improvements that reduce the environmental footprint; ongoing discovery of lithium at the Bergby
project and in the surrounding region; and rapidly advancing various opportunities in cobalt across
Europe
including Finnish and Romanian assets.
At the Woxna graphite production facility, the Company is focused on optimization of the purification and
shaping processes required to convert low value graphite into high value lithium ion battery-ready anode
material. Laboratory based work to date has produced battery-ready anode materials by both chemical and
thermal purification methods that meet the electrochemical specifications of battery cell manufacturers.
Larger scale test work is ongoing targeting optimization of a purification flow sheet and definition of equipment
requirements to produce battery grade materials and other salable by-products. The research focus is
directed towards commercially proven process improvements which can be installed on the Woxna mine site
within existing operating permits.
In late
April 2018
the Company announced initiation of an exploration alliance focused on lithium ion battery
materials in Romania. The exploration alliance has highlighted cobalt and lithium opportunities, for which
secure tenure is now being sought. Following technical and commercial due diligence, Leading Edge
Materials established a local branch company ("
LEM
Romania
") of which it is the majority shareholder with
the right to earn a 90% interest. LEM Romania is owner of the 25.5 sq km (2,550 ha) Bihor Sud Prospecting
Permit in central western Romania.
Qualified Person
The technical content of this release has been reviewed and approved by Mr.
Blair Way
, B.Sc. (Geology)
M.B.A., a Fellow of the Australasian Institute of Mining and Metallurgy, the Company's President and CEO
and a Qualified Person as defined by National Instrument 43-101.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Mr.
Blair Way
, President and CEO
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on production of high value critical raw
materials for the European market, with an operating base in the Nordic region, a region well recognized for
its promotion and investment in innovation. LEM's flagship asset is the Woxna Graphite production facility
located in central
Sweden
targeting the supply of specialty materials for lithium ion battery production. LEM's
assets and research focus are towards the raw materials for Li-ion batteries (graphite, lithium, cobalt);
materials for high thermal efficiency building products (graphite, silica, nepheline); and materials that improve
the efficiency of energy generation (dysprosium, neodymium, hafnium). Investments are linked to the global
shift to low-carbon energy generation and energy storage. Leading Edge Materials currently operate in four
divisions, Graphite, Lithium, Rare Earth and Cobalt.
Additional Information
The Company's consolidated financial statements for the year ended
October 31, 2018
and related
management's discussion and analysis are available on the Company's website at
www.leadingedgematerials.com
or under its profile on SEDAR at
www.sedar.com
Leading Edge Materials is listed on the TSXV under the symbol "LEM" and Nasdaq First North Stockholm
under the symbol " LEMSE". Mangold Fondkommission AB is the Company's Certified Adviser on Nasdaq
First North and may be contacted via email
or by phone +46 (0) 8 5030 1550.
Reader Advisory
This news release may contain statements which constitute "forward-looking information", including
statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or
its officers with respect to the future business activities of the Company. The words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to
the Company, or its management, are intended to identify such forward-looking statements. Investors are
cautioned that any such forward-looking statements are not guarantees of future business activities and
involve risks and uncertainties, and that the Company's future business activities may differ materially from
those in the forward-looking statements as a result of various factors, including, but not limited to,
fluctuations in market prices, successes of the operations of the Company, continued availability of capital
and financing and general economic, market or business conditions. There can be no assurances that such
information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such
uncertainties. The Company does not assume any obligation to update any forward-looking information
except as required under the applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news
release.
View original content to download multimedia:
http://www.prnewswire.com/news-releases/leading-edge-materials-reports-fiscal-2018-results-300784011.html
SOURCE
Leading Edge Materials
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/January2019/24/c4464.html
%SEDAR: 00031410E
For further information:
Please contact the Company at: 1.604.685.9316, [email protected],
www.leadingedgematerials.com
CO: Leading Edge Materials
CNW 16:30e 24-JAN-19