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Polaris Announces 2011 Year End Results and Conference Call

Wednesday, March 21, 2012 8:27 PM

VANCOUVER, March 21, 2012 /CNW/ - Polaris Minerals Corporation (TSX: PLS) today reported financial results for the year ended December 31, 2011, in accordance with International Financial Reporting Standards (IFRS). All financial results are in US dollars unless otherwise noted.

Revenue in 2011 was $23.4 million an increase of 30% over the $18.0 million recorded in the prior year. This was generated on sales of 1.73 million tons of sand and gravel compared with 1.28 million tons sold in 2010, an increase of 35%. Sales in the fourth quarter of 2011 were 506,000 tons, more than double the 178,000 tons sold in the fourth quarter last year. Sales during the first quarter of 2012, the winter quarter, are significantly higher than in the same period last year.

The net loss attributable to shareholders for the year was $17.8 million ($0.33 loss per share) compared with a net loss of $13.1 million ($0.25 loss per share) for the year ending December 31, 2010. A revised fair value estimate of the Company's jointly-owned freehold land in the Port of Long Beach resulted in a loss of $2.1 million being recognized compared to the profit of $2.1 million recognized in the previous year, thus representing a difference in net losses of $0.08 per share between the two years. The net loss recorded in 2011 was also impacted by a non-recurring loss of $2.2 million ($0.04 loss per share) arising from the sale of two non-core assets with the cash proceeds being used for working capital. At the year end cash on hand was $1.63 million.

Herb Wilson, President and CEO, said:  "The strong increase in sales reported for 2011 commenced in the second half of the year, gained momentum during the fourth quarter and is continuing into 2012 with increased demand from both the public and private sectors and the realization of an average selling price increase. Management believes that the first half of 2011 represented the bottom of this severe recessionary cycle and is now looking forward to a period of recovery during which selling prices are expected to strengthen. We expect to meet contracted shipping volumes in 2012 and therefore avoid penalty payments that have affected previous years". He added, "We are benefitting from an increased level of construction activity in our major market around San Francisco Bay, including the commencement of supplies to three additional ready mixed concrete manufacturers.


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