MineHub achieved over $1 million in combined Total Revenue and Other Income in Fiscal Q2-2024.
Management provides a positive outlook based on an expanded sales pipeline and recently announced contracts.
Vancouver, British Columbia--(Newsfile Corp. - September 19, 2023) - MineHub Technologies Inc. (TSXV: MHUB) (OTCQB: MHUBF) ("MineHub" or the "Company"), the leading provider of digital supply-chain solutions for commodity markets, is pleased to announce that it has filed its condensed interim consolidated financial statements (the "Interim Financial Statements'') and management's discussion and analysis (the "MD&A") for Fiscal Q2-2024, representing the three months ended July 31, 2023. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR+ at www.sedarplus.ca.
Andrea Aranguren, President & CEO of MineHub, comments, "We are very pleased with the second quarter results in which we achieved record revenue and benefited from a surge in customer engagement. Furthermore, our recently announced contracts with Codelco and another large global mining company solidify MineHub's position as the leading digital provider for the commodities industry. The combination of MineHub and Waybridge earlier this year has created an inflection point which is propelling us forward with groundbreaking technology, increasing sales activity and customer wins. Through strategic cost synergies, we've also accelerated our path to anticipated profitability. Our focus on growth, innovation, and customer value continues to propel us forward as the market leader in digitizing commodity supply chains."
Second Quarter Financial Highlights:
MineHub achieved quarterly revenue of $375,071 during Q2, compared to $19,826 generated in the same period of 2022, an increase of 1,792%. Revenue growth was primarily driven by the addition of SaaS revenue from Waybridge customers and project-related revenue from the roll-out of the MineHub platform and enterprise applications into the operations of a prominent global mining company and business network.
MineHub recognized $690,807 of Other Income from the Concentrates Application Development Agreement with Sumitomo Corporation announced on June 20, 2023. The combination of Revenue plus Other Income equaled $1,065,878 in the second quarter.
MineHub reported a Net Loss of $1.5 million in Q2, compared to a net loss of $2.2 million in Q2 of the prior year. The reduction in losses is attributable to higher revenues in the quarter offsetting an increase in costs, $2.6 million of total expenses in Q2 compared to $2.2 million in the prior year, driven by the Waybridge acquisition.
Second Quarter Business Highlights:
On June 9, 2023, the Company closed a non-brokered private placement for total gross proceeds of $1 million. The Company issued 5,000,000 units at a price of $0.20 per unit. Each unit is comprised of one common share and one-half of one transferable share purchase warrant.
On June 20, 2023, the Company announced that Sumitomo Corporation ("Sumitomo") had provided MineHub a $1 million capital contribution towards accelerating their joint goal of digitization of the metal concentrates market by promoting the adoption of the MineHub platform and its Concentrates Application as the emerging industry standard for the settlement of concentrates transactions.
On July 17, 2023, the Company announced the appointment of Andrea Aranguren as its new Chief Executive Officer. Andrea previously served as the President & COO of MineHub, joining the Company earlier in the year through the acquisition of Waybridge Technologies where she was the co-founder and Chief Customer Officer.
Events Subsequent to July 31, 2023:
- On August 2, 2023, the Company announced that it had entered into an agreement with a prominent global mining company to digitize its mining and supply chain operations, including the onboarding of numerous ecosystem partners onto the platform. This agreement is expected to contribute approximately CAD$850,000 to MineHub's revenue over the next 12 months.
- On August 9, 2023, the Company announced that it had finalized and signed a three-year contract with Corporación Nacional del Cobre de Chile ("Codelco"), the largest copper producer in the world. The MineHub and Codelco teams have already agreed on an implementation approach, as well as a comprehensive plan to onboard Codelco's global customers onto the platform. The teams have also started initial training and integration preparation work.
- On August 24, 2023, the Company announced the launch of "Enhanced ETAs", a predictive AI-powered shipment tracking and delivery module on its platform. Enhanced ETAs is a meticulously built, robust model that calculates Estimated Time of Arrival (ETA) for specific routes. This transformative module takes the guesswork out of logistics, enabling more precise ETA projections for given routes calculated using constantly improving machine learning algorithms and comprehensive data models.
Outlook:
MineHub has a robust sales pipeline, and demand for MineHub's products has increased since the acquisition of Waybridge. The Company has not felt any material impacts thus far due to recession, inflation, or other macroeconomic effects. Management anticipates an acceleration of user growth and revenue throughout 2023, reflecting MineHub's market-leading position among digitized commodity supply chains.
Management remains optimistic about the Company's growth prospects and is pleased to report that the team is making progress on all of MineHub's previously announced key goals for 2023:
- Leverage the combined strengths of MineHub and Waybridge to further accelerate the Company's growth, improve margins and increase long-term customer value.
- Increase Monthly Recurring Revenue ("MRR") by signing customers from the Company's sales pipeline.
- Improve profitability with cost containment strategies while increasing revenue and cash flow.
- Continue to invest in Research and Development to integrate the MineHub and Waybridge technology platforms.
About MineHub
MineHub provides enterprise-grade digital solutions that connect buyers, sellers, laboratories and financiers within physical commodities supply chains in a digitally integrated workflow powered by data that is useable, shareable, verifiable and unforgeable. Users of MineHub solutions are in full control of their supply chains, enabling them to optimize their use of resources, respond better and faster to disruptions, and provide a better customer service. Global enterprises already use MineHub solutions as part of their logistics, compliance, trade management and financing operations.
Andrea Aranguren
CEO, MineHub Technologies Inc.
For further information regarding MineHub, please email info@minehub.com or visit our website at www.minehub.com. Tel: (604) 628-5623
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements that are considered "forward-looking information" within the meaning of applicable Canadian securities legislation ("forward-looking statements") with respect to MineHub including, but not limited to, statements with respect to MineHub's future operational plans, the timing of such plans, anticipated customers and demand for its products and anticipated revenue growth and improved profitability. Forward-looking statements are statements that are not historical facts are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although MineHub believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company's ability to raise sufficient capital to fund its operations, applications and for general working capital purposes, changes in economic and macroeconomic conditions or financial markets, changes in laws or regulations that could have an impact on the Company's operations, dependence on its key management personnel, market competition and integration of MineHub and Waybridge technology platforms. Other risk factors are identified in the Company's management discussion and analysis, available on the Company's SEDAR+ profile at www.sedarplus.ca. There may be other risk factors not presently known that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. Although the Company has attempted to identify risk factors that could cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. The forward-looking information is made as of the date included herein, and the Company assumes no obligation to publicly update or revise such forward-looking information. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of MineHub's management on the date the statements are made. However, except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change.
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