Keweenaw Land Association, Limited Reports Third Quarter Results and Announces New Mineral Lease

November 8, 2011

Net Income for the third quarter ended September 30, 2011 at Keweenaw Land Association, Limited (OTCPink: KEWL.PK) jumped 93% to $723 thousand or $0.56 per share compared to $374 thousand or $0.29 per share for the same period in 2010. The results were helped by a 17% increase in sales from timber operations and a 26% increase in other income. Other income was aided by a gain on the sale of securities and higher rental income and was partial offset by lower land sales and mineral royalties. Comprehensive income for the period, which includes unrealized gains and losses on securities as well as adjustments for gains included in net income, fell 34% to $373 thousand or $0.29 per share versus $565 thousand or $0.44 per share for the same period in 2010.

For the nine month period, the company reversed a prior year loss by reporting net income of $286 thousand or $0.22 per share compared to a net loss of $88 thousand or ($0.07) per share for the same period in 2010. Sales from timber operations increased a modest 7% while other income increased 14%. Other income was boosted by higher rental income, investment earnings and a gain on the sale of securities. These numbers were partial offset by lower land sales and mineral royalties. Comprehensive income for the period fell 81% to $16 thousand or $0.01 per share versus $86 thousand or $0.07 per share for the same period in 2010.

The balance sheet remains in good shape with total assets of nearly $17 million, including cash, cash equivalents and investments in marketable securities of $3.8 million, and total liabilities of only $2.4 million.

Keweenaw Land also announced that it has entered into a 20-year exploratory mineral/mining lease with Gogebic Taconite. The lease covers 3,320 acres in Gogebic County.

Source: Keweenaw Land Association, Limited

Disclosure: The author held a long position in KEWL.PK at the time this article was published.

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