FOR: DIA MET MINERALS LTD.
TSE, AMEX SYMBOL: DMM.A
TSE, AMEX SYMBOL: DMM.B
MAY 21, 1999
Dia Met Minerals' Year-End Results
KELOWNA, BRITISH COLUMBIA--Dia Met Minerals Ltd. is pleased to
release its year-end results and annual report to shareholders.
On October 14, 1998, the Ekati Diamond Mine was officially opened.
This ceremony brought to a conclusion the development and
construction of Canada's first diamond mine. It was built on
budget and on time in the harsh environment of Canada's North.
The operator, BHP Diamonds, and everyone involved deserve
accolades for successfully building this project with a safety
record unparalleled in the North. The construction and startup
took place with few major problems, and the mine is now operating
close to projected capacity.
Regular sales of rough diamonds began in 1999 and have been
conducted through BHP Diamonds' office in Antwerp, Belgium. In
January, a total of 68,500 carats from October and November 1998
production was sold for $8.5 million US, an average of $124 US a
carat. Specials - large stones of 10.8 carats and up - were not
included and will be marketed separately.
A second larger sale of rough diamonds was held in February and a
third one in March. The average price per carat rose with each
sale. The price was higher yet again in a fourth sale in the last
week of April. A total of 457,500 carats was sold from the
beginning of February to the end of April for $67.5 million US, an
average of about $147 US a carat.
The diamonds have been very well accepted. The introduction of
Canadian diamonds to the international market went smoothly and
demand has been beyond expectations.
For the fiscal year ended January 31, 1999, the company's share of
diamond sales was $3.77 million. The company's share of earnings
from these sales before interest on the mine financing and income
and resource taxes was $1.74 million.
The operations to January 31, 1999, are not indicative of the
projected annual operations for the mine. The fiscal year ended
January 31, 2000, will be the first complete year of operations at
the Ekati Diamond Mine and will be more representative of future
operations.
Summarized financial highlights (reported in Canadian dollars)
compared with the previous fiscal year are as follows:
/T/
Consolidated Statements of Operations and Deficit
1999 1998
Revenue
Equity in earnings from
Ekati Diamond Mine $ 1,738,161 $ -
Aircraft operations 284,860 3,674,015
Interest and other income 3,554,890 2,207,700
----------------------------
5,577,911 5,881,715
----------------------------
Expenses
Amortization of capitalized interest
and direct expenditures on the
Ekati Diamond Mine 418,184 -
Interest on obligations for the
Ekati Diamond Mine 5,189,876 -
Cost of mineral properties
abandoned 2,047,792 1,707,041
Aircraft operations 132,872 4,176,752
General and administrative
and other 3,565,709 2,306,489
Income taxes 677,895 498,360
Loss for the year (6,454,417) (2,806,927)
Loss per share $ (0.21) $ (0.10)
Consolidated Balance Sheets
Cash position $ 34,155,302 $ 42,575,828
Working capital 34,119,607 42,685,712
Total assets 329,744,004 233,816,888
Total liabilities 277,821,175 173,832,870
Shareholders' equity 51,922,829 59,984,018
/T/
Dia Met Minerals is a publicly traded mineral exploration and
development company with a primary focus on diamonds. The company
holds a 29 per cent interest in the Core Zone joint venture of the
Ekati mine, Canada's first diamond mine. BHP Diamonds, a
wholly-owned subsidiary of the Broken Hill Proprietary Company
Limited of Australia, has a 51 per cent interest and is the mine
operator. Two geologists, Charles Fipke and Stewart Blusson, have
a 10 per cent share each. In addition to its investment in the
Ekati mine, Dia Met carries out extensive global exploration,
including heavy mineral sampling and airborne and ground
geophysics in Finland, Greenland, Africa, British Columbia and
eastern Europe.
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS
James E. Eccott, CEO and President
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