Highwood Resources Ltd -
6mo results
Highwood Resources Ltd HWD
Shares issued 20,025,748 1998-08-31 close $0.6
Tuesday Sep 1 1998
Mr. John Smrke reviews the company
Highwood Resources' unaudited consolidated earnings were $169,838 or one cent per share for the second quarter ended June 30, 1998 compared to consolidated earnings of $172,739 or one cent per share for the same period in 1997. Year to date earnings were $356,717 compared to $359,859 for the same six month period last year.
Cash flow from operations for the year to date was $803,955 or four cents per share compared to $824,824 or four cents per share in 1997.
Revenues for this second quarter were $3,395,631, down 5.3 per cent from the same period in 1997. Year to date revenues were $6,861,323, down 1.2 per cent from the same six month period in 1997. This decrease was primarily the result of the downturn in oil and gas drilling activity which caused sales of barite in drilling fluids to fall. It is anticipated that this situation will reverse itself and barite sales will increase later in the second half of the year. Sales of silica sand limestone, gypsum and zeolite met expectations during the period.
The company's Chinese barite joint venture has continued to perform well during the first half of 1998. Production targets and sales volumes have met or exceeded their targets for every month in this six month period. Indications are that this trend will continue and strengthen throughout the balance of the year.
Throughout the second quarter the company has continued in its efforts toward the permitting of the Thor Lake beryllium property in Northwest Territories. To this end, the company participated in several public consultation sessions throughout the Northwest Territories during the month of May with the last required meeting conducted in June.
The next order of business was the government's compilation of the data which resulted from these sessions and this information has been forwarded to the company. The company has since responded to all of the questions and issues which were raised at the various meetings. This same data will be included in the company's environmental assessment document which will be submitted by the third quarter.
Following this stage, the Regional Environmental Resource Committee, along with various bodies of the government, will review the company's submission and determine whether sufficient data has been provided which would enable the company to proceed to a water board hearing. The company continues to maintain its expectation that this hearing will take place by the fall and it is hopeful that the water licence required to commence work at the Thor Lake site will closely follow the meeting.
The company will determine the next phase of work at the site depending on the actual date at which the water licence is received.
At the project site, recent activities have taken two different forms. Golder Associates continued its efforts by gathering environmental baseline data. The results of this work will be submitted as part of the application for the necessary water licence. Additionally, the company commenced a re-evaluation of some of the strategic diamond drilling core which is stored at the mine site. This was done to assess whether any other economic ores may be present in the anticipated mining zones. Camp clean up was also performed in July.
During the second quarter, the company has reviewed many potential acquisition opportunities. Several of these prospects continue to be under evaluation as the company views this type of activity as strategic toward the overall growth of the company.
CONSOLIDATED STATEMENT OF EARNINGS
Three months ended June 30
1998 1997
Revenue
Sales $ 3,395,631 $ 3,584,108
Cost of sales 2,553,579 2,713,999
----------- -----------
842,052 870,109
----------- -----------
Expenses
General and
admin 358,605 396,390
Depreciation and
amortization 210,827 230,634
Exploration 100,128 47,687
Interest on
long-term debt 17,929 29,603
----------- -----------
687,489 704,314
----------- -----------
Income from
operations 154,563 165,795
Interest income 42,275 33,944
----------- -----------
Net earnings
before income
taxes 196,838 199,739
Income taxes
Current 12,000 12,000
Deferred 15,000 15,000
----------- -----------
Net earnings $ 169,838 $ 172,739
=========== ===========
Earnings per
share .8 cents .8 cents
CONSOLIDATED STATEMENT OF EARNINGS
Six months ended June 30
1998 1997
Revenue
Sales $ 6,861,323 $ 6,944,147
Cost of sales 5,206,816 5,272,051
----------- -----------
1,654,507 1,672,096
----------- -----------
Expenses
General and
admin 722,374 755,985
Depreciation and
amortization 417,238 434,965
Exploration 147,425 75,022
Interest on
long-term debt 37,236 60,281
----------- -----------
1,324,273 1,326,253
----------- -----------
Income from
operations 330,234 345,843
Interest income 80,483 68,016
----------- -----------
Net earnings
before income
taxes 410,717 413,859
Income taxes
Current 24,000 24,000
Deferred 30,000 30,000
----------- -----------
Net earnings $ 356,717 $ 359,859
=========== ===========
Earnings per
share 1.6 cents 1.6 cents
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