A Saskatoon-based rare earth elements mining company continues to restructure its operations in order to cut costs.
Great Western Minerals Group released its second quarter results today showing a 31 per cent increase in revenue from $4.3 million to $5.6 million when compared to the same period last year.
However, the company also saw its available cash flow drop from $34.1 million to $13.1 million during the same time and is still carrying an overall debt of roughly $19 million.
GWMG CEO Mark LeVier says cost reductions have included some employee layoffs and reduction of office space.
“We have changed office locations in Saskatoon, which substantially reduced the size of office we’re leasing and there’s more savings there,” he says. “With the completion of the feasibility study, there was a scheduled reduction of staff in South Africa to what we need at this time.”
Vice-President of Finance Thomas Mair also says markets for rare earth elements have been tight in recent months but the company is hopeful brighter days are ahead.
“It’s a tough market for mineral projects generally, our capital structure is an issue…,” he says.
Rare earth elements are used in a number of high-tech products including cell phones, personal computers and flat screen televisions.
GWMG has mining interests in South Africa, the United States and northern Saskatchewan.
The company has been in existence since 1983.