3rd Quarter results
SouthernEra Resources Limited (SUF-TSE) today
announced that net income for the three months to September 30, 1998 was $11.9
million on revenue of $24 million and net income for the nine month period was
$13.9 million on revenue of $35.2 million, compared to losses of $0.6 million
for the three months and $2.1 million for the nine months in 1997, when the
Company had no production. On a per share basis the earnings were 46 cents for
the quarter compared to a loss of 3 cents, and for nine months, earnings of 54
cents compared to a loss of 9 cents in 1997.
Cash flow from operations was $21.2 million or 82 cents per share for the
quarter ended September 30, compared to $0.9 million, or 4 cents per share for
the same quarter in 1997. For the nine months, cash flow was $25.3 million or
98 cents per share compared to a negative amount of $0.1 million for the same
period in 1997.
The Company attributed the major change in revenue and income to the
start of commercial production of the Marsfontein Joint Venture on August 31.
The Joint Venture produced 190,000 carats of diamonds during the quarter with
the Company's 40% share equivalent to 76,000 carats. With production from the
Klipspringer Project, the Company's South African production was equivalent to
94,000 carats for the three months and 156,000 carats for the nine months.
Diamond recoveries at the Cassanguidi Concession (SUF 50% of revenue,
100% of costs), in Angola totalled 58,200 carats for the quarter, compared to
5,400 carats in the previous quarter, as a particularly rich concentration of
gravel in the Luembe River is being mined.
Production at Luo (SUF 46% of revenue, 100% of costs), was 4,800 carats
compared to 8,000 carats in the second quarter. Operating personnel at Luo
were engaged on the completion of a secondary diversion of the Chicapa River,
with fewer hours committed to mining.
The Company's share of total production in Angola was equivalent to
31,500 carats for the quarter and 43,700 carats for the nine month period.
At Camafuca (SUF 51%), work continued on excavating several of the higher
grade areas of the pipe to provide a bulk sample of 20,000 tonnes for
processing late this year.
Exploration in South Africa, particularly at Klipspringer, continued to
give encouraging results, with an expanded program in progress.
The Company went on to say that over $38 million had been invested in
exploration, property, Joint Venture acquisitions and plant and equipment over
the nine month period. Working capital at September 30 was reported as $8.3
million, including cash on hand of $6.9 million.
The full text of the quarterly report will be available on the Company's
website and is being mailed to shareholders. |
