Opta Minerals Inc of Waterdown, ON has reported a net loss of US$21.9 million on revenue of US$113.8 million for 2015 compared with a net loss of US$1.9 million on revenue of US$139.9 million in 2014. Last month, the company announced that it had entered into a definitive acquisition agreement with Speyside Equity Fund I LP pursuant to which a subsidiary of Speyside will acquire all of its issued and outstanding common shares.
Opta continues to restructure its business which includes closing unprofitable locations, reducing costs, simplifying operations and improving the balance sheet by reducing inventory thereby improving liquidity. The restructuring impact is isolated to the Industrial Minerals group and Corporate office, with limited impact on the Steel and Magnesium group.
Opta’s Industrial Minerals segment generated sales of US$44.7 million in 2015, down from US$58.4 million in 2014. The decrease in revenue from abrasive products over the prior year was largely driven by lower volume partially attributable to lost customers as a result of product and facility rationalizations. It was also driven by intense competition for market share in the U.S. The company continues to restructure certain facilities or close plants.
Opta’s Steel and Magnesium segment reported 2015 revenue of US$69.1 million compared with US$81.5 million in 2014. Revenue decreased throughout 2015 as a result of lower volumes, a general slowdown in the steel industry and unfavorable exchange rates.