El Capitan Updates 2015 Guidance to Reflect Dockworker Strike and Resulting Delays
March 23 2015 - 7:15AM
Business Wire
El Capitan Precious Metals, Inc. (OTCQB: ECPN) today reported a
revised financial outlook for the fiscal year ending September 30,
2015. The revised outlook reflects a downward revision to the
Company’s financial outlook and is, in large part, a result of the
protracted labor disputes involving 13,600 unionized dockworkers
that have snarled trade at international seaports on the West
Coast.
ECPN Board Chairman John F. Stapleton stated that the West Coast
port problems have made it impossible to complete scheduled
shipments of ECPN ore. According to terms of the Company’s contract
with its Chinese buyer, title changes hands from the Company to the
buyer when the ore is loaded onto the shipping vessel. It is at
that point in the transaction process that revenue can be
recognized. The Company has not been able to complete this
requirement.
All available alternatives are being pursued to complete
shipments to the overseas buyer. In addition, the Company is
negotiating with North American buyers for the sale of precious
metals concentrates that do not require transport through ocean
ports.
The impact of the disruption will delay revenue into the quarter
beginning in April 2015, with the result that Projected Pre-Tax
Profit for 2015 booked on an accrual basis in accordance with
Generally Accepted Accounting Principles (GAAP) is revised to $2.4
– 3.0 million, with positive cash flow occurring in the quarter
ending June 30.
About El Capitan Precious Metals,
Inc.:
El Capitan Precious Metals, Inc. is a mining company based in
Scottsdale, Arizona, that is principally engaged in the mining of
precious metals and other minerals. The Company’s primary asset is
its wholly owned subsidiary El Capitan, Ltd., an Arizona
corporation, which holds the 100% equity interest in the El Capitan
property located near Capitan, New Mexico. www.elcapitanpmi.com
Forward-Looking Safe Harbor Statement:
The statements included in this press release concerning
predictions of economic performance and management’s plans and
objectives constitute forward-looking statements made pursuant to
the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Forward-looking statements are statements
that are not historical facts. Words such as “expect(s),”
“feel(s),” “believe(s),” “will,” “may,” “anticipate(s)” and similar
expressions are intended to identify forward-looking statements.
These statements include, but are not limited to, statements
regarding the expected completion, timing and results of
metallurgical testing, interpretation of drill results, the
geology, grade and continuity of mineral deposits, results of
initial feasibility, pre-feasibility and feasibility studies and
expectations with respect to the engaging in strategic
transactions. All of such statements are subject to risks and
uncertainties, many of which are difficult to predict and generally
beyond the control of the Company, that could cause actual results
to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements.
Specifically, there can be no assurance regarding the timing and
terms of any transaction involving the Company or its El Capitan
property, or that such a transaction will be completed at all. In
addition, there can be no assurance that periodic updates to the
Company’s geological technical reports will support the Company’s
prior claims regarding the metallurgical value and make-up of the
ore on the New Mexico property. Additional risks and uncertainties
affecting the Company include, but are not limited to, the
possibility that future exploration, development, testing or mining
results will not be consistent with past results and/or the
Company’s expectations; discrepancies between different types of
testing methods, some or all of which may not be industry standard;
the ability to mine precious and other minerals on a cost effective
basis; the Company’s ability to successfully complete contracts for
the sale of its products; fluctuations in world market prices for
the Company’s products; the Company’s ability to obtain and
maintain regulatory approvals; the Company’s ability to obtain
financing for continued operations and/or the commencement of
mining activities on satisfactory terms; the Company’s ability to
enter into and meet all the conditions to consummate contracts to
sell its mining properties that it chooses to list for sale; and
other risks and uncertainties described in the Company’s filings
from time to time with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof,
and we do not undertake any obligation to revise and disseminate
forward-looking statements to reflect events or circumstances after
the date hereof, or to reflect the occurrence of or non-occurrence
of any events.
El Capitan Precious Metals, Inc.John Stapleton, 480-440-1449
El Capitan Precious Metals (CE) (USOTC:ECPN)
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