Joe Pratt

Joe Pratt from Stifel requested the quarterly EBITDA breakdown from continuing operations for 2015 and sought confirmation of the EBITDA figures for Q1 and Q2 before the reclassification of discontinued operations.

Answer

CFO Sam Morrow provided the EBITDA from continuing operations for Q3 2015 as $5.5 million and the nine-month total as $27.7 million. He also confirmed that the previously reported EBITDA figures (before the accounting change) were approximately $13.5 million for Q2 and about $20 million for Q1 2015.

Joe Pratt from Stifel asked for a specific example of a new customer acquisition in the supply chain business, the services provided, and the names of key competitors.

Answer

President and CEO Gerardo Cortina provided two examples: sourcing sodium sulphate from China for Latin American detergent makers and a ferrosilicon offtake agreement with a Malaysian producer. He explained that MFC's competitive advantage is providing integrated services and financing, which differentiates them from numerous Chinese competitors. He also clarified that MFC operates in niche markets and does not directly compete with commodity giants like Noble or Glencore.

Joe Pratt of Stifel Nicolaus sought clarification on the specific asset groups classified as held for sale and their respective values, and also asked for a repeat of the Q4 versus Q3 revenue comparison.

Answer

President and CEO Gerardo Cortina and CFO Sam Morrow clarified that there were two primary assets held for sale: the Niton assets in Alberta, carried on the balance sheet at approximately $100 million, and an investment property in East Germany valued at about $30 million. Sam Morrow also reiterated that Q4 2014 revenue was $391 million, nearly identical to Q3's $392 million.