A recovery in demand for IBC Advanced Alloys’ advanced alloy products boosted the company’s fiscal first quarter (3 months to September 30) revenues by 119%.
The vertically integrated beryllium exploration and research & development specialist with advanced alloy manufacturing facilities in Indiana, Massachusetts, Pennsylvania and Missouri, reported revenues of US$5.66 million while then net loss for the period reduced by 16% to $0.673 million.
EBITDA also significantly improved, with a loss of $0.092 million compared to a loss of $0.34 million in the comparable period in 2009. It is worth noting that the EBITDA loss applies at the corporate level; IBC’s manufacturing operations have generated positive EBITDA for several consecutive quarter.
It was the fourth consecutive quarter of revenue growth reported by the rare earth metals company.
“The increase in revenues and improved financial performance demonstrate a strong sustained recovery in demand for the Company's advanced alloy products,” IBC explained. “The Company continues to invest in growth through the expansion of its manufacturing operations and several business development initiatives.”
IBC was formed in 2007 to tackle the beryllium market from three angles: control of mineral leases that could be developed into mines, consolidation of the highly fragmented beryllium alloys industry and research & development of new applications for beryllium to increase market demand for the mineral.
To date, IBC has done exactly what it set out to do.
The company has established several R&D programs, including a nuclear fuel development partnership is currently in place with Perdue and Texas A&M Universities, which will provide IB with an exclusive license on intellectual property for commercial applications.
On the manufacturing front, it owns Beralcast, which is a specialty manufacturing business that owns proprietary technology for casting beryllium aluminum alloy that is used in a wide variety of aerospace and advanced technology applications. The company also produces moulds and tooling equipment from various alloys in a broad range of shapes, sizes and custom designs for clients in 40 countries that includes the U.S. military.
And finally, on the exploration side of the business, IBC owns three beryllium exploration projects, and recently completed a Fugro Airborne Survey over the Juab County Project which abuts the world’s largest beryllium mine at Spor Mountain.
Beryllium is a “high technology metal” that is very lightweight, strong and can withstand corrosion, high temperatures and extreme stress; it is typically used in the form of an alloy in nuclear, medical, automotive, telecom and defense industries. Russia and the United States are the primary sources of beryllium.