Inter-Rock Minerals Sales Revenue Boosted by Higher Dairy Prices

Inter-Rock Minerals Inc of Toronto, ON has reported a net loss of US$69,000 on revenue of US$14.2 million in the three months ended June 30, 2020 versus a net income of US$470,000 on revenue of US$11.6 million in the same period of 2019. The company owns three operating businesses: Papillon Agricultural Co Inc, MIN-AD Inc, and Mill Creek Dolomite LLC.

Inter-Rock says that the higher revenue reflects strong sales at Papillon, which is partially attributable to a rapid recovery in prices of dairy products in the months following the onset of the coronavirus. Prices of dairy products rose sharply in June due to increasing retail sales of fluid milk at grocery stores, increased herd culling rates and reduced milk production in May.

Papillon recorded revenue of US$12.40 million in the second quarter of 2020 compared with US$9.05 million in the prior year period. Revenue in the first six months of 2020 was US$24.5 million, compared with US$18.66 million for the first six months of 2019. Improved revenue for the second quarter and first half of 2020 was attributed to higher sales volumes. Overall tons sold in the second quarter and first half of 2020 were 15% and 30% higher, respectively, than in the comparable periods in 2019. Sales in the first half of 2019 were negatively impacted by lower milk prices, particularly in the fourth quarter of 2018 and first quarter of 2019. Although average milk prices in the second quarter of 2019 were higher than in the same period of 2020, sales of dairy nutritional products typically lag milk price increases as farmers rebuild their working capital.

Tons of dolomite sold by Mill Creek in the second quarter of 2020 declined by 44% from the same period of 2019, while sales volumes for the first six months of 2020 were 24% lower than the year earlier period. The declines were largely attributable to the loss of a large glass customer at the end of the first quarter and to glass customers reducing inventory in the second quarter as a result of COVID-19.

Reduced sales to the glass industry were partially offset by sales to a new customer added at the end of 2019. Volumes sold to the roofing materials market were down slightly in the first half of 2020 compared with the same period of 2019, while sales of aglime were largely unchanged.

MIN-AD recorded revenue of US$1.79 million in the second quarter of 2020 versus US$1.90 million in the same period of 2019. Sales volumes in the current quarter were 3% below the year earlier quarter. For the first six months of 2020, revenue of US$3.95 million and tons sold were unchanged from the corresponding period of 2019.

Volume 34, Issue 17

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