Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, reported results for the third
quarter ended September 30, 2017, and provided an operational
update.
Odyssey has been assisting its subsidiary,
Exploraciones Oceanicos (ExO), in developing plans for the recovery
of phosphate sands in the “Don Diego” concession area. The
company is under contract to execute a multi-million-dollar,
multi-year offshore program in support of detailed mining and
environmental management programs to facilitate the project moving
into the production stage quickly. This work can begin if and when
the environmental approval from SEMARNAT is received. ExO has
challenged, through an established process in the Mexican court,
SEMARNAT’s denial of the environmental permit for the “Don Diego”
project. The Mexican attorneys handling the case for ExO are
hopeful that the decision will come before the end of the year. If
a favorable outcome is received, SEMARNAT will be required to issue
an environmental permit for the project.
Odyssey also continues to develop and partner
with other groups on new subsea mineral projects that will require
offshore exploration work and resource evaluation by the Odyssey
marine operations team.
Currently planned shipwreck and mineral projects
are conducted under leveraged contract models whereby Odyssey is
paid to perform offshore services while retaining a significant
back-end share of the future net proceeds from these projects. At
least one major project will commence upon delivery and testing of
specialized recovery equipment, which is currently being
manufactured. 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.
Management Commentary “Work
behind the scenes continues at full speed as we identify and
develop multiple deep-ocean opportunities, including an upcoming
contracted project that is expected to begin generating sufficient
cash in 2018 to fund overall company operations and is forecast to
produce cash returns for 12-18 months,” said Mark Gordon, Odyssey
CEO and President.
“Simultaneously we remain committed to our
long-term mission to develop globally significant subsea mineral
resources. We are focused on the ‘Don Diego’ project and are
expanding and advancing our global pipeline of prospective projects
to accomplish our goals in this category. Although the court
process in the ‘Don Diego’ environmental permit process appears to
be moving slowly, it is following the steps defined by the Mexican
legal system and is close to a decision. A back-and-forth series of
filings by both ExO and SEMARNAT were completed and received by the
Federal Court of Administrative Justice in September. It is now up
to an 11-judge panel to render a ruling in the case. In addition,
we are in active negotiations and expect to advance one or more new
seafloor mineral projects in 2018.
“While we prepare for upcoming projects, we
continue to evaluate our operations and identify ways to be more
efficient. This discipline has led to a further 19% reduction
in general and administrative expenses and a 37% reduction in total
operational expenses comparing the first nine months of 2016 and
2017. We also continue to generate cash from operations and expect
to secure additional cash generating projects throughout 2018.
“As a company, we are in an excellent position
with several opportunities that could unleash significant value for
our company and shareholders in the near future. Significant
progress has been made on the company transition, and the
management team appreciates our shareholders patience as we
continue to transform the company.”
Q3 2017 Financial SummaryThe net loss in the
third quarter of 2017 was $2.3 million or $(0.27) per share as
compared to net loss in the third quarter of 2016 of $2.1 million
or $(0.28) per share.
Total revenue in the current quarter was $0.0
million, a $2.9 million decrease over the revenue in the same
period a year ago. The $2.9 million revenue in the same quarter
last year was generated from providing shipwreck exploration
services for Magellan.
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 $0.3 million from $2.2 million in 2016 to $1.9 million
in 2017 primarily as a result of (i) a reduction of $0.6 million of
personnel compensation and related expenses which includes a
reduction in share-based compensation of $0.5 million, (ii) $0.1
million decrease in corporate supportive overhead and (iii) an
increase of $0.4 million related to admiralty legal
support.
Operations and research expenses primarily
include all costs within Archaeology, Conservation, Exhibits,
Research, and Marine operations, which include all vessel and
charter operations. Operations and research expenses
decreased by $2.3 million from 2016 to 2017 as a result of a $2.4
million reduction of marine services costs which include technical
crew costs as well as other marine operational costs such as
equipment rental, fuel, port fees and consumables, an increase in
the gain on sale of marine equipment of $0.9 million and a
reduction of $0.8 million of general marine services overhead costs
which includes depreciation and insurances.
Consolidated financial statements as well as the
Company's Quarterly Report on Form 10-Q for the three months ended
September 30, 2017, 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 engages 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 performs marine
services for private clients and governments.
We currently have numerous projects in various
stages of development around the world from both our own portfolio
as well as through third-party contracts. The company operates
transparently, documenting its science practices and conducting all
work in a responsible manner.
For additional details, please visit www.odysseymarine.com.
Forward Looking Information
Odyssey 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, 2016, which was filed with the Securities and
Exchange Commission on March 30, 2017. 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.
Investors The 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.
MEDIA CONTACT: Liz Shows Odyssey Marine Exploration, Inc.(813)
876-1776 x 2335lshows@odysseymarine.com
Odyssey Marine Exploration (NASDAQ:OMEX)
Historical Stock Chart
From Feb 2024 to Mar 2024
Odyssey Marine Exploration (NASDAQ:OMEX)
Historical Stock Chart
From Mar 2023 to Mar 2024