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TAMPA, Fla., Aug. 09, 2019 (GLOBE NEWSWIRE) -- Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the field of deep-ocean exploration, reported results for the second quarter ended June 30, 2019, and provided an update on current projects.
“Earlier this year, we articulated our business plan which focuses on developing subsea mineral assets to create and realize near and long-term value. To achieve this, we intend to continue development of our own projects, acquire other mineral rights/deposits and earn equity in deep-sea mineral projects through our leveraged contracting model,” said Mark Gordon, Odyssey Chief Executive Officer and Chairman of the Board. “We’ve made significant progress on these goals so far this year, and we continue to push forward.”
Odyssey recently announced the acquisition of a 79.9% equity interest in Bismarck Mining Corporation (PNG) Limited. This company owns an exclusive exploration license covering at least five (5) prospective exploration targets within two different mineralization types: seamount-related epithermal and modern placer gold. The license area is adjacent to Lihir Island in Papua New Guinea, where one of the world’s largest known terrestrial gold deposits is currently being mined and processed. Bismarck’s license area includes two subaqueous debris fields believed to have originated from the same volcanogenic source that is currently being mined on Lihir.
Odyssey’s previous exploration work in this license area indicates a strong probability of polymetallic resource with commercially viable gold content in the license area. We are already working to advance the value of this project by further validating and quantifying the precious and base metal contact of the prospective resource and expect to be have an expedition working on site in early 2020.
“Our strategy also involves monetizing small percentages of our holdings at various stages of development to provide funds for additional development of new subsea mineral projects. We expect to close a transaction in the third quarter where we will sell up to one third of the 15% equity we hold in an early stage mineral project for $1 per share up to a total of $5 million if fully exercised,” continued Gordon.
“Our team also continues to work closely with our NAFTA counsel on the claim regarding our ExO Phosphate Project in Mexico. We expect the tribunal in the case to be constituted by the beginning of next quarter. In the meanwhile, discussions with Mexican government officials in pursuit of a mutually beneficial settlement continue. We have entered into an agreement that provides sufficient funding to support robust and sustained pursuit of this action. The funding allows us to continue to focus corporate funds on the development of additional subsea mineral projects.”
Odyssey is also continuing to provide offshore services to our shipwreck business partner Magellan Limited for a range of services on a major shipwreck recovery project covering multiple valuable targets..
Second Quarter 2019 Financial Results
Net loss for the current quarter was $2.8 million, or ($0.30) per share, compared to a loss of $0.6 million or ($0.08) per share in the same period a year ago.
Total revenue in the current quarter was $0.8 million, a $0.3 million decrease compared the revenue in the same period a year ago. The revenue generated in each period was a result of performing marine research, project administration and 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 mineral-related services in 2019 to the deep-sea mineral exploration company, CIC, LLC owned and controlled by our past Chairman of the Board.
Marketing, general and administrative expenses increased $0.1 million to $1.6 million for the three-month period ended June 30, 2019 compared to $1.5 million from the same period in 2018. There are several variances that resulted in this increase from period to period variance. Personnel costs decreased by $0.1 million due to lower employee and share-based compensation, directors fees increased by $0.1 million as a result of directors not receiving cash compensation in 2018, financing related fees increased by $0.1 million, and there was an increase in financing related fees, an increase of $0.1 million related to admiralty legal support and a $0.1 million decrease in general corporate overhead.
Operations and research expenses increased by $1.2 million from 2018 to 2019 primarily as a result of the following items: (i) the prior period contained an extraordinary gain related to the sale of marine assets for $1.0 million, (ii) a $0.1 million decrease in mineral technical services and related travel, (iii) a $0.1 million decrease in marine recovery labor and (iv) a $0.4 million increase in legal fees.in legal spend.
Total other income and expense was $1.3 and $0.7 million in net expenses for 2019 and 2018, respectively, resulting in a net expense increase of $0.6 million. This variance was primarily attributable to an increase in interest expense of $0.5 million from recording the beneficial conversion feature tied to a promissory note.
Consolidated financial statements as well as Odyssey's Quarterly Report on Form 10-Q for the period ended June 30, ,2019, 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, 2018, which was filed with the Securities and Exchange Commission on April 1, 2019. 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.
Odyssey Marine Exploration, Inc.