Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, reported results for the third
quarter ended September 30, 2018, and provided an update on current
projects.
“I’ve never been more optimistic about the
long-term future of Odyssey. Cash on hand, combined with expected
revenues and profit sharing from contract work on multiple projects
currently underway and forecast to continue for at least another 12
months, provides us the runway necessary to fully execute our
strategic plan to become a dominant force in the emerging seafloor
minerals space,” stated Mark Gordon, President and CEO of Odyssey
Marine Exploration. “We remain confident that the issues with the
environmental permit for the Mexican phosphate deposit controlled
by ExO will be resolved favorably in the near term. This resource
has the strong potential to propel many of the new incoming
Administration’s key objectives and plans to positively transform
the economy and food security for the benefit of the Mexican
people. Success with this project collaterally increases the value
of the rest of our portfolio of seafloor mineral projects.
“In addition to the phosphate project, we are
developing three other deep-ocean mineral projects in different
mineral sets and in various jurisdictions around the world. Two of
these projects are located in jurisdictions that have a
demonstrated history of promoting and supporting the development of
their seafloor mineral resources. Each of these projects have the
potential to be as, or even more valuable than, the Mexican
phosphate project. Bringing one or more of these projects through
the development process has the potential to radically transform
the value of our company. Any one of these projects individually
has the potential to create single asset values that could be a
significant multiple to the total current market value of our
company.”
“Optimism about success of these projects is
bolstered by the fact that the company is working in concert with
authorities in each of the three jurisdictions that encourage
development of seabed resources. There are clear and defined
regulatory paths for advancing these programs that adhere to and
complement the goals of various agencies that manage the seabed
resources in each country where projects are located. Our
investment in government and community relations in the areas that
we are developing mineral resources assures that not only will the
development of the resource have significantly positive financial
benefits for the host countries but will also support their
educational and cultural development initiatives that stem from
long-term mineral programs,” added Mark Gordon.
Odyssey’s Current
ProjectsCurrently planned or operational shipwreck and
mineral projects are conducted under leveraged contract models
whereby Odyssey is paid to perform services while retaining a
significant back-end share of the future net proceeds from these
projects or an equity ownership share of the project. The combined
potential cash flows from these projects are expected to fund
operations for multiple years while simultaneously increasing the
value of projects in which the company has an equity ownership
position.
Offshore operations are currently underway on a
contracted project that is expected to begin generating cash in the
first quarter of 2019 to fund company operations and is forecast to
produce cash returns for a minimum 12-18 months.
Odyssey holds a controlling interest in Oceanica
Resources, S. de R.L., and Exploraciones Oceanicas, S. De R.L. De
C.V. (ExO), a subsidiary of Oceanica. ExO controls exclusive
50-year mining permits in an area in Mexican waters that contains a
large amount of phosphate mineralized material. To move to
the next phase of this project in Mexico, Odyssey and its
subsidiaries are awaiting the issuance of an environmental
permit.
On March 21, 2018, the 11-judge panel of the
Superior Court of the Federal Court of Administrative Justice in
Mexico ruled unanimously in favor of ExO, nullifying the original
denial of the environmental permit application. On October 18,
2018, we were notified that SEMARNAT repeated their refusal to
issue the environmental approval for the phosphate deposit
controlled by ExO in opposition to the ruling and Court Order
issued by Mexico’s Federal Court of Administrative Justice. On
October 22, 2018, legal counsel for ExO filed an action before the
Court requesting sanctions be imposed upon SEMARNAT and a
requirement for SEMARNAT to promptly issue the permit as directed
in the Court Order.
Two additional strategic mineral deposits are
currently under development. One is an Odyssey mineral project and
the other is being conducted under contract with Odyssey receiving
cash and equity in the new venture.
Odyssey is in the process of acquiring another
new subsea mineral project that will require offshore exploration
work and resource evaluation. Concurrently, Odyssey is developing
and researching new mineral project opportunities exploring
different asset types in various regions around the world.
Third Quarter 2018 Financial
Results
Net loss for the current quarter was $1.3
million, or ($0.15) per share, compared to a loss of $2.3 million,
or ($0.27) per share in the same period a year ago, an improvement
of $1.0 million.
Total revenue in the current quarter was
$886,000, an $874,000 increase over the revenue in the same period
a year ago. The revenue generated in each period was a result
of performing marine research, search and recovery operations for
our customers and related parties. We provided these services
to our related party customer Magellan during both of these periods
as well as providing marine related services to the deep-sea
mineral exploration company.
Marketing, general and administrative expenses
primarily include all costs within the following departments:
Executive, Finance & Accounting, Legal, Information Technology,
Human Resources, Marketing & Communications, Sales and Business
Development. Marketing, general and administrative expenses
decreased by $0.5 million from $1.9 million in 2017 to $1.4 million
in 2018 primarily as a result of (i) a reduction of $0.3 million of
admiralty legal fees, (ii) a $0.1 million decrease in independent
director meeting fees and (iii) a $0.1 million reduction financing
fees.
Operations and research expenses primarily
include all costs within Geology, Archaeology, Conservation,
Exhibits, Research, and Marine operations, which includes all
vessel and charter operations. Operations and research
expenses increased by $0.5 million from 2017 to 2018 primarily as a
result of the following offsetting items: (i) increases of $0.1
million for our deep-sea mining concession fee, (ii) $0.5 million
increase in marine labor directly tied to the incremental revenue
and (iii) a $0.1 million decrease related to marine depreciation
and insurance.
Consolidated financial statements as well as
Odyssey's Quarterly Report on Form 10-Q for the period ended June
30, 2018, are available on the company's website at
www.odysseymarine.com as well as at www.sec.gov.
About Odyssey Marine
Exploration Odyssey Marine Exploration, Inc. (Nasdaq:OMEX)
is engaged in deep-ocean exploration using innovative methods and
state-of-the-art technology to provide access to critical resources
worldwide. Our core focus is the discovery, development and
extraction of deep-ocean minerals. Odyssey also provides marine
services for private clients and governments. For additional
details, please visit www.odysseymarine.com.
Forward Looking
InformationOdyssey Marine Exploration believes the
information set forth in this Press Release may include "forward
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933 and Section 21E of the Securities Act of 1934. Certain factors
that could cause results to differ materially from those projected
in the forward-looking statements are set forth in "Risk Factors"
in Part I, Item 1A of the Company's Annual Report on Form 10-K for
the year ended December 31, 2017, which was filed with the
Securities and Exchange Commission on March 26, 2018. The financial
and operating projections as well as estimates of mining assets are
based solely on the assumptions developed by Odyssey that it
believes are reasonable based upon information available to Odyssey
as of the date of this release. All projections and estimates are
subject to material uncertainties and should not be viewed as a
prediction or an assurance of actual future performance. The
validity and accuracy of Odyssey's projections will depend upon
unpredictable future events, many of which are beyond Odyssey's
control and, accordingly, no assurance can be given that Odyssey's
assumptions will prove true or that its projected results will be
achieved.
Cautionary Note to U.S.
InvestorsThe U.S. Securities and Exchange Commission (SEC)
permits mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "measured", "indicated," "inferred"
and "resources," which the SEC guidelines strictly prohibit us from
including in our filings with the SEC. "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category. U.S. investors are
cautioned not to assume that part or all of the inferred mineral
resource exists, or is economically or legally mineable, and are
urged to consider closely the disclosures in our Form 10-K which
may be secured from us or from the SEC's website at
http://www.sec.gov/edgar.shtml.
CONTACT:Laura BartonOdyssey Marine Exploration,
Inc.(813) 876-1776 x 2562laura@odysseymarine.com
Odyssey Marine Exploration (NASDAQ:OMEX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Odyssey Marine Exploration (NASDAQ:OMEX)
Historical Stock Chart
From Sep 2023 to Sep 2024