' DiamondWorks Ltd. announces first quarter earnings of US $0.12 per share
Tuesday April 29, 6:30 pm ET
TSX: DMW
VANCOUVER, April 29 /CNW/ - DiamondWorks Ltd. (the "Company") is pleased to announce its unaudited financial results for the first quarter ended February 28, 2003. Net income for the first quarter ended February 28, 2003 after adjustments for non-controlling interests was $7,383,397 or $0.12 per share compared to a net loss of ($417,934) or ($0.01) per share for the first quarter ended February 28, 2002. Revenues for the three month period ended February 28, 2003 were $95,129,079 compared to nil revenues for the three month period ended February 28, 2002. All figures are stated in US dollars.
The substantial improvement of results over the comparative period reflects the consolidation of the financial results of its recently acquired subsidiary Otterbea International (Proprietary) Limited ("Otterbea") and the activities of its wholly owned subsidiary Petroplus Africa Limited ("Petroplus Africa"). The financial results for the reporting period reflect the Company's initial 80.1% of Otterbea. Subsequent to the end of the reporting period the Company acquired the remaining outstanding 19.9 % of Otterbea. Assuming the Company had acquired the remaining Otterbea interest effective December 1, 2002, net income for the period ended February 28, 2003 would have been $8,024,167 or $0.13 per share. Improved first quarter revenues were driven by the trading activities of Otterbea and Petroplus and in particular the activities related to supply and sale of crude oil and refined petroleum products in Zambia and Kenya.
As at February 28, 2003 the Company's balance of cash and cash equivalents increased to $8,348,880 from $4,969,259 as at November 30, 2002. The Company's working capital increased to $5,092,722 at February 28, 2003 compared to a deficit of ($174,999) as of November 30, 2002. Cash flow from operations for the period ended February 28, 2003 was negative ($7,088,667) compared to negative ($439,066) for the period ended February 28, 2002, including $15,192,648 and $31,813 respectively for the net increase in non- cash working capital items. Cash flow from financing activities for the period ended February 28, 2003 from short term loans and advances was $12,871,991 compared to $451,004. Cash flow for expenditures on capital assets was $2,403,703 for the period ended February 28, 2003 compared to nil.
Mr. Tony Teixeira, Chief Executive Officer of the Company stated; "This marks the third consecutive quarter that the Company has been able to report positive earnings. The continued improvement in the financial condition and operating performance of the Company is encouraging and in keeping with our long term plan for corporate growth. We expect our revenue and earnings performance to continue throughout 2003 as additional trading contracts are finalized. Our ongoing strategy will be to utilize the cash flow derived from the Company's trading activities to fund the development and production of diamonds from our substantial mineral property interests in Sierra Leone, Angola and Central African Republic. We are pleased with the initial results of the implementation of our strategy and look forward to the continued profitability of the Company and the related increase in shareholder value."
DiamondWorks is a mining and mineral exploration company engaged in the acquisition, exploration, development and mining of diamond and other mineral properties. The Company's principal mineral properties are located in Sierra Leone, Angola and Central African Republic. The Company's wholly owned subsidiaries Otterbea International (Proprietary) Limited and Petroplus Africa Limited specialize in commodities trading, the supply and sale of crude oil and refined petroleum products and procurement and logistics for the mining industry in Africa.'
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