VANCOUVER, British Columbia, May 24, 2022 (GLOBE NEWSWIRE) — Finning International Inc. (TSX: FTT) (“Finning”, the “Company”, “we”, “our” or “us”) announced today the award of mining contracts in Western Canada and Chile. Our Canadian operation has entered into an agreement with Artemis Gold Inc. (“Artemis”) to supply Caterpillar mining equipment to the Blackwater Gold Project in British Columbia. Our South American operation has received a notice of award from Chilean state-owned copper producer, Codelco, to provide Caterpillar electric drive trucks to the Ministro Hales copper mine in northern Chile.
In Western Canada, we will deliver primary and ancillary Caterpillar mining fleets to Artemis’ Blackwater Gold Project, including 793F off-highway trucks and hydraulic shovels, along with product support, over a 5-year period, with the term extendible for up to an additional 5 years at the option of Artemis.
In Chile, we will deliver 13 Caterpillar 798AC electric drive off-highway trucks to Codelco’s Ministro Hales open pit copper mine and support the fleet under a 10-year maintenance and repair contract. We expect to start delivering the new trucks in the second half of 2022. These trucks will expand Ministro Hales’ existing Caterpillar truck fleet and are expected to enhance fuel efficiency and reduce emissions.
‘We continue to benefit from strengthening demand for mining equipment, product support, and technology solutions for existing operations, brownfield expansions, and greenfield projects in our regions. We are very pleased to support Artemis Gold in Western Canada and to build on our long-term relationship with Codelco. These awards will expand our equipment population and drive our long-term product support growth as we support our customers in improving efficiencies, productivity, and safety, as well as reducing the carbon footprint of their operations. We continue to strengthen our competitive position in mining to support a transition to cleaner energy with Caterpillar’s electric drive and future zero emissions haul trucks,” said Scott Thomson, president & CEO of Finning International.
Finning International is the world’s largest Caterpillar dealer delivering unrivalled service to customers for nearly 90 years. Headquartered in Surrey, British Columbia, we provide Caterpillar equipment, parts, services, and performance solutions in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland.
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This news release contains information that is forward-looking. Information is forward-looking when we use what we know and expect today to give information about the future. All forward-looking information in this news release is subject to this disclaimer including the assumptions and material risk factors referred to below. Forward-looking information in this news release includes, but is not limited to, the following: our supply of primary and ancillary Caterpillar mining fleets to Artemis’ Blackwater Gold Project, including 793F off-highway trucks and hydraulic shovels, along with product support, over a 5-year period, with the term extendible for up to an additional 5 years at the option of Artemis; our supply of 13 Caterpillar 798AC electric drive off-highway trucks to Codelco’s Ministro Hales open pit copper mine and support the fleet under a 10-year maintenance and repair contract, our expectation to start delivering these new trucks in the second half of 2022, and our expectation that these new trucks will enhance fuel efficiency and reduce emissions (delivery expectations for both deals assume timely placement of binding purchase orders and that our actions to manage supply chain challenges will continue to be successful); Caterpillar’s future zero emissions haul trucks (assumes zero emissions haul trucks will be successfully brought to market); and our expectation to drive our long-term product support growth, improve our customers’ efficiencies, productivity and safety and reduce the carbon footprint of their operations. All such forward-looking information is provided pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws. Unless otherwise indicated by us, forward-looking information in this news release reflects our expectations at the date in this news release. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise.
Forward-looking information, by its very nature, is subject to numerous risks and uncertainties and is based on assumptions. This gives rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking information and that our business outlook, objectives, plans, strategic priorities and other information that is not historical fact may not be achieved. As a result, we cannot guarantee that any forward-looking information will materialize.
Factors that could cause actual results or events to differ materially from those expressed in or implied by this forward-looking information include: the impact and duration of the COVID-19 pandemic and measures taken by government and businesses in response; general economic and market conditions in Western Canada and Chile; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, our products and services; our ability to maintain our relationship with Caterpillar; our dependence on the continued market acceptance of our products, including Caterpillar products, and services and the timely supply of parts and equipment; our ability to continue to sustainably reduce costs and improve productivity and operational efficiencies while continuing to maintain customer service; our ability to manage cost pressures as growth in revenue occurs; our ability to negotiate satisfactory purchase or investment terms and prices, obtain necessary regulatory or other approvals, and secure financing on attractive terms or at all; our ability to manage our growth strategy effectively; our ability to effectively price and manage long-term product support contracts with our customers; our ability to reduce costs in response to slowing activity levels; our ability to drive continuous cost efficiency in a recovering market; our ability to attract sufficient skilled labour resources as market conditions, business strategy or technologies change; our ability to negotiate and renew collective bargaining agreements with satisfactory terms for our employees and us; the intensity of competitive activity; our ability to maintain a safe and healthy work environment across all regions; our ability to raise the capital needed to implement our business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments in the regions where we carry on business; our ability to respond to climate change-related risks; the occurrence of natural disasters, pandemic outbreaks, geo-political events, acts of terrorism, social unrest or similar disruptions; fluctuations in defined benefit pension plan contributions and related pension expenses; the availability of insurance at commercially reasonable rates or whether the amount of insurance coverage will be adequate to cover all liability or loss we incur; the potential of warranty claims being greater than we anticipate; the integrity, reliability and availability of, and benefits from, information technology and the data processed by that technology; our ability to protect our business from cybersecurity threats or incidents; the actual impact of the COVID-19 pandemic; and, with respect to our normal course issuer bid, our share price from time to time and our decisions about use of capital. Forward-looking information is provided in this news release for the purpose of giving information about our current expectations and plans and allowing investors and others to get a better understanding of our operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking information for any other purpose.
Forward-looking information provided in this news release is based on a number of assumptions that we believed were reasonable on the day the information was given, including but not limited to the specific assumptions stated above; that we will be able to successfully manage our business through the current challenging times involving the effects of the COVID-19 response, stretched supply chains, competitive talent markets, significant inflation and changing commodity prices, and successfully implement our COVID-19 risk management plans; an undisrupted market recovery, for example, undisrupted by COVID-19 impacts, commodity price volatility or social unrest; the successful execution of our profitability drivers; that our cost actions to drive earnings capacity in a recovery can be sustained; that commodity prices will remain at constructive levels; that our customers will not curtail their activities; that general economic and market conditions will improve; that the level of customer confidence and spending, and the demand for, and prices of, our products and services will be maintained; that present supply chain challenges will not materially impact equipment and parts deliveries; our ability to successfully execute our plans and intentions; our ability to attract and retain skilled staff; market competition will remain at similar levels; the products and technology offered by our competitors will be as expected; that identified opportunities for growth will result in revenue; that we have sufficient liquidity to meet operational needs; consistent and stable legislation in the various countries in which we operate; no disruptive changes in the technology environment and that our current good relationships with Caterpillar, our customers and our suppliers, service providers and other third parties will be maintained; sustainment of strengthened oil prices and the Alberta government will not re-impose production curtailments; that there will be a moderate increase in mining royalties in Chile; and continued strong recoveries in our regions. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this news release are discussed in our current Annual Information Form (AIF) and in our annual and most recent quarterly management’s discussion and analysis (MD&A) for the financial risks, including for updated risks related to the COVID-19 pandemic.
We caution readers that the risks described in our AIF and in our annual and most recent quarterly MD&A are not the only ones that could impact us. We cannot accurately predict the full impact that COVID-19 will have on our business, results of operations, financial condition or the demand for our services, due in part to the uncertainties relating to the development of variants, the severity of the disease, the duration of the outbreak, the steps our customers and suppliers may take in current circumstances, including slowing or halting operations, the duration of travel and quarantine restrictions imposed by governments and other steps that may be taken by governments to respond to the pandemic. Additional risks and uncertainties not currently known to us or that are currently deemed to be immaterial may also have a material adverse effect on our business, financial condition, or results of operation.
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