Year-to-Date Revenues of Approximately $1.5 million from Gold Mining Operations in 2014
HONG KONG, CHINA / ACCESSWIRE / November 26, 2014 / Borneo Resource Investments Ltd. (OTCQB: BRNE) (the "Company" or "Borneo"), a mining company that mines gold and develops producing gold mines in Indonesia, today announced financial results for the quarter ended September 30, 2014.
Revenue was up for both the third quarter of 2014 and year-to-date. Revenue increased 7.7% in the third quarter to $546,927. On a year-to-date basis, revenue increased over 100% to $1,485,483, reflecting new operations at Borneo's Ratatotok location. Borneo expects revenues to continue to increase as a result of new processing facilities and new properties.
Borneo is still in its initial growth stage. As a result, the costs of acquiring properties and making them ready for gold production have had a drag on operating results. While revenues exceeded costs applicable to sales, depreciation and general and administrative costs (including costs to acquire and plan development for new properties) generated an operating loss of $122,043 in the third quarter of 2014. Borneo, however, plans to grow revenue in the first quarter of 2015 and cut expenses to generate an operating profit in the first quarter of 2015.
Nils Ollquist, Chief Executive Officer commented "I am pleased to report that our operations in Ratatotok are developing well, with construction of our second (5000 ton capacity) processing area expected to be completed and operational by early January. We have also completed initial plans for a 10,000 ton capacity processing area, the implementation of which will bring our production capacity at Ratatotok to around 15 kg of gold per month."
"From a financial perspective," Mr. Ollquist continued, "I am pleased that the sales result for the nine months ending September 30, 2014 of $1.5 million was double the result for the comparable period last year, reflecting the ongoing effect of our expansion and upgrading program. Our profitability for the period was affected by the impact of high levels of expenditure on developing our production facilities which were charged to the profit and loss account under prevailing accounting guidelines. I am confident that continued investment in our operations, combined with strategic acquisitions of additional high quality properties will result in a sustained improvement in our operating metrics over 2015."
About Borneo Resource Investments Ltd.
Borneo Resource Investments Ltd. (OTCQB:BRNE) is a mining company that mines gold and develops producing gold mines as well as coal mining properties in the Republic of Indonesia. Borneo's current assets include three gold properties, two of which are producing gold. Cash flow-producing investments in gold properties help fund Borneo's operations and investments in gold, while the Company develops high value, longer-term investments in thermal "coal concessions", which are properties that can be mined for coal. Borneo currently has one coal concession in the Borneo region of Indonesia. Indonesia was the 8th largest gold producing nation in 2012 and the world's largest exporter of coal, with $25 billion exported in 2012.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Words such as "believe", "estimate", "will be", "will", "would", "expect", "anticipate", "plan", "project", "intend", "could", "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.
For example, we are using forward looking statements when we discuss the indications that estimate the potential revenue that may be generated from this property. These forward-looking statements are based on the current expectations of the management of Borneo Resource Investments Ltd. only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in the price of natural resources, a change in the estimate of natural resources on our concessions, a change in the ability to extract the natural resources, changes in Indonesian law, risks associated with counterparty default in any of our agreements and the ability to acquire funding. Except as otherwise required by law, Borneo Resource Investments Ltd. undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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SOURCE: Borneo Resource Investments Ltd.