Opta Minerals Closes Unprofitable Operations

Opta Minerals Inc of Waterdown, ON has announced a third quarter net income of US$686,000 on revenue of US$28.8 million versus a net income of US$519,000 on revenue of US$35.9 million in the third quarter of 2014. Revenue in the company’’s Steel and Magnesium segment decreased 15.8%, to US$18.2 million and revenue in its Industrial Minerals segment’s revenue decreased 26.2%, to US$10.6 million. Bernhard Rumbold, Opta’s interim CEO, said, “The company continues with restructuring the business and we have seen improvements from our efforts. We are continuing to work at closing unprofitable locations, reducing costs, simplifying operations and improving the balance sheet by reducing inventory thereby improving liquidity. We are striving to have our restructuring work substantially complete by the end of the year.” To date, Opta has consolidated its Brantford, ON site into its Waterdown facility. And abrasives manufacturing sites in Tampa, FL and Temisca, QC have been closed. The future of other sites are being assessed. “Markets remain soft but slightly better than the first half 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. We will be holding off on the recruitment of a permanent CEO until this matter is closed.”

Volume 29 issue 23

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