TAMPA, Fla., Nov. 13, 2018 (GLOBE NEWSWIRE) — 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 Projects
Currently 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 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, 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. 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.
CONTACT:
Laura Barton
Odyssey Marine Exploration, Inc.
(813) 876-1776 x 2562
[email protected]
