TAMPA, Fla., Aug. 8, 2013 (GLOBE NEWSWIRE) — Odyssey Marine
Exploration (Nasdaq:OMEX), pioneers in the field of deep-ocean
exploration, reported results for the second quarter ended June 30,
Second Quarter 2013 Highlights
— Received $10 million in cash from the early exercise of options to
purchase shares of one of its subsidiaries active in subsea minerals
(Oceanica Resources, S. de R.L.). This transaction bolstered Odyssey’s
balance sheet with no incremental shareholder dilution. Since February
2013, Odyssey has received a total of $25 million in cash from the sale
of a 23% interest in Oceanica.
— Continued to invest in activities intended to increase the value of
Odyssey’s assets in the subsea minerals business by undertaking further
coring and validation work.
— Commenced operations on the SS Gairsoppa shipwreck site, which
subsequently led to Odyssey recovering 61 tons or 1.8 million troy
ounces of silver bullion from the Gairsoppa, setting a new world record
for the deepest and largest recovery of precious metals from a
— Published a new series of scientific papers on the 1990-1991 “Tortugas”
shipwreck excavation, which had paved the way for innovative advances in
methodology and robotic technology used in the industry today.
— Celebrated the grand opening of Odyssey’s SHIPWRECK! exhibit at
Discovery Times Square in New York City featuring the first public
display of silver recovered from the Gairsoppa shipwreck and more than
500 authentic artifacts recovered from Odyssey’s shipwreck projects.
“During the second quarter, we made strong progress across the board,
from our traditional shipwreck recovery operations to monetizing our
newer seabed mineral assets,” said Greg Stemm, Odyssey’s chief
executive officer. “The funds we netted from transactions involving the
exercise of Oceanica stock options bolstered our balance sheet as we
began our 2013 North Atlantic Expedition that included returning to the
“In addition to the significant financial impact of recovering 61 tons
of silver bullion from the Gairsoppa, recovering more than 99% of the
insured silver cargo from difficult to access areas in a steel ship at
record depths of nearly three miles demonstrated the extraordinary
expertise of our offshore team and the unique capabilities of the
specialized deep-ocean equipment utilized. We’ll be applying this
expertise and these technological capabilities to other high-value
shipwrecks and natural resource projects.”
“We’re also continuing to develop our portfolio of mineral exploration
projects. The hundreds of core samples taken from the seabed and
analyzed to date continue to suggest that the Oceanica deposit is a
world-class mineral resource in terms of size and market value. Further
core samples gathered in the concession area are currently being
processed and we look forward to sharing more information about
Oceanica when sufficient data is collected and analyzed to provide a
clear picture of the potential value and commercial viability of the
“For the second half of 2013, in addition to potential new recoveries
and discoveries, the stage is set for further asset monetization. We
anticipate further conversion of existing options in Oceanica which
could total up to $17.5million. Additionally, analysis and processing
of the 1.8 million ounces of silver recovered from the Gairsoppa has
begun and we expect monetization to begin by September.”
Subsea Mineral Mining Exploration Project Update
Oceanica Resources: Oceanica is in the business of mineral exploration
and controls exclusive permits for offshore mineral deposits in an area
which is believed to feature valuable mineral resources based on
exploratory activities undertaken by Odyssey.
Preliminary resource assessment based on extensive coring and
laboratory work suggests that the mining concession, which has been
granted for a 50-year period to a subsidiary of Oceanica, is a
world-class resource with significant commercial and strategic value.
Coring sample assay results and preliminary sample beneficiation tests
indicate that the resource can be feasibly and economically mined and
processed. A draft Technical Report featuring a formal resource
assessment is currently in process and one of the world’s leading
investment banks is advising the company on options for development of
the deposit and maximizing the value of this asset.
Additional Project Updates
Gairsoppa: From September 2012 through January 2013, Odyssey monetized
silver bullion recovered from the Gairsoppa. The company received more
than $41 million in proceeds from the sale of the 1,218 Gairsoppa
silver bars recovered in 2012, with $1.8 million received in the first
quarter of 2013.
Odyssey began 2013 Gairsoppa operations in June, and on July 22, the
company announced the recovery of an additional 1,574 silver ingots
weighing about 1,100 ounces each or almost 1.8 million troy ounces in
total. This recovery set a new world record for the deepest and largest
precious metal recovery from a shipwreck. The recovery from the
Gairsoppa (2012 and 2013 operations) totals 2,792 silver ingots or more
than 99% of the insured silver reported to be aboard the Gairsoppa when
it sank. None of the indicated uninsured silver has been located.
Analysis and processing of the 1.8 million ounces of silver recovered
from the Gairsoppa in 2013 has begun and we expect monetization to
begin by September 2013
The recovery operations were conducted from the 291-foot Seabed Worker
mobilized with 5,000 meter depth-rated remotely operated vehicles
(ROVs), and heavy launch and recovery systems.
Mantola: The Seabed Worker has returned to sea to continue Odyssey’s
2013 North Atlantic Expedition, which includes the SS Mantola, a 450
foot British-flagged steamer lost in 1917 and found in 2011 by Odyssey.
The Mantola reportedly carried approximately 600,000 troy ounces of
silver insured under the UK War Risk insurance program. Operations on
the Mantola are presently underway.
HMS Victory: Odyssey provided a revised archaeological project design,
developed as a result of the impact report, to the Maritime Heritage
Foundation. This revised project design has been approved by the
Foundation’s Scientific Advisory Committee, chaired by marine
archaeologist Dr. Margaret Rule, and was submitted to the UK MOD by the
Maritime Heritage Foundation.
On January 31, 2013, the Maritime Heritage Foundation received a
response from the MOD that acknowledged there is an identified threat
to the Victory site. The letter also sets forth a set of ‘Key
Management Principles’ to be agreed upon prior to undertaking
additional work on the site. The company has reached an agreement on
these principles with the Maritime Heritage Foundation, which would
allow the company to move forward on the project while providing
comfort to the government and the MOD Advisory Group that proper
archaeological principles will be adhered to through the course of the
project. The Foundation submitted these management principles as well
as a report detailing the non-disturbance survey work on the site to
the MOD. While awaiting instructions from the Maritime Heritage
Foundation to move forward on the Victory project, the Odyssey Explorer
is conducting survey operations on other projects.
Second Quarter 2013 Financial Results
Total revenue in the second quarter of 2013 was $0.3 million, as
compared to $1.4 million in the same year-ago quarter. The decrease in
total revenue is primarily attributed to lower revenue from expedition
charter services, offset in part by a $0.1 million increase in artifact
and other sales. Net income does not include the $10 million from the
exercise of options Odyssey granted for a portion of its shares in
Oceanica Resources. The cash received from the sale of our Oceanica
shares has been recognized as a financing arrangement and accordingly
recorded as an equity change in our subsidiary thereby having no impact
on our consolidated statement of operations.
Marketing, general and administrative expenses in the second quarter of
2013 were $2.9 million, as compared to $2.5 million in the same
year-ago quarter. The increase was primarily due to an increase in the
company’s professional fees and services, and an increase in other
Operations and research expenses in the second quarter of 2013 were
$9.5 million, as compared to $9.6 million in the same year-ago quarter,
primarily due to decreased ship operations and research expense.
Net loss for the second quarter of 2013 was $10.9 million or $(0.14)
per share, as compared to a net loss of $15.6 million or $(0.21) per
share in the same year-ago quarter. The net loss decreased primarily as
a result of changes in the valuation of derivative instruments issued
by the company in 2011 and 2012. These derivative valuation changes had
no impact on the cash flows of the company.
Cash and cash equivalents totaled $10.3 million at June 30, 2013, as
compared to $11.0 million at March 31, 2013.
Consolidated financial statements as well as the full filing are
available on the company’s website at www.odysseymarine.com as well as
About Odyssey Marine Exploration, Inc.
Odyssey Marine Exploration, Inc. (Nasdaq:OMEX) is engaged in deep-ocean
exploration using innovative methods and state-of-the-art technology
for historic shipwreck projects, modern commodity shipwreck projects
and subsea mineral exploration. Odyssey offers various ways to share in
the excitement of deep-ocean exploration by making shipwreck treasures
and artifacts available to the general public, students, and collectors
through its webstore, exhibits, books, television, merchandise,
educational programs and virtual museum located at
www.OdysseysVirtualMuseum.com. The company also maintains a Facebook
page at http://www.facebook.com/OdysseyMarine and a Twitter feed
For additional details on Odyssey Marine Exploration, please visit