Aluminae Inc. trimmed its losses in the third quarter as it
slashed three vice president positions and limited exploration
and development work in an effort to lower operating costs.
company, which produces alumina from aluminous clay rather than
traditional bauxite, trimmed its net loss to Canadian $2.1
million ($2 million) in the third quarter from a net loss of
nearly C$4 million in the comparable year-ago quarter,
according to earnings data released Nov. 14.
Orbite also cut its
net loss for the first nine months of the year to C$6 million
($5.7 million) from a net loss of C$13.9 million a year
Orbite said it is a
"development stage" company and, therefore, hasnt
"During the third
quarter we continued to remain focused on building a new and
more efficient Orbite," executive vice president and chief
operating officer Glenn Kelly said in a statement released with
earnings data. The company is concentrating on finishing its
high-purity alumina facility in Cap-Chat, Quebec, and
development of its "red mud" remediation project with
Paris-based waste handler Veolia Environmental Services
(amm.com, April 30).
Red mud is a caustic
by-product of traditional aluminum production.
Orbite reported cash
and short-term investments of C$4.4 million ($4.2 million) and
positive working capital of C$3.8 million ($3.6 million) as of
Sept. 30, but warned that those amounts were insufficient to
complete construction and commissioning of its high-purity
alumina plant. The company reported negative cash flow from
operations of C$6.4 million ($6.1 million) in the first nine
months of 2013 and lost C$11.9 million from operations for all
Because Orbite has
limited financial resources, management is seeking to raise
capital to meet funding requirements, the company said, noting
that it largely relies on issuances of shares, debt and other
sources of financing to fund its overhead.
Orbite has announced a
public offering of up to C$16 million ($15.3 million) in
convertible unsecured debentures and share purchase warrants,
which the company expects to complete in the fourth quarter,
subject to regulatory approval. It also said it has received a
binding subscription for C$40 million ($38.2 million) from Los
Angeles-based institutional investor Crede Capital Group LLC
amm.com, Nov. 12).
But until those
financing deals close on "acceptable terms," Orbite said it has
moved to limit operating costs. "There can be no assurance that
managements plans will be successful," it said.
"Accordingly, it could result in a material uncertainty that
may cast significant doubt about the corporations ability
to continue as a going concern."