Earnings out this morning:
Wednesday September 29, 8:04 am Eastern Time
Dia Met Minerals Q2 results
Full text of press release from Canadian Corporate News)
SEPTEMBER 29, 1999
Dia Met Minerals Ltd. Announces Second Quarter Results
KELOWNA, BRITISH COLUMBIA--Dia Met Minerals Ltd. is pleased to release its half year results for the six months
ended July 31, 1999. Summarized financial highlights (reported in Canadian dollars) for this period, compared with the six
months ended July 31, 1998 are as follows:
Consolidated Statements of Operations and Deficit
Six months ended Six months ended
July 31, 1999 July 31, 1998
---------------- ----------------
(unaudited) (unaudited) Revenue
Equity in earnings from
Ekati Diamond Mine $39,390,385 $ -
Interest and other income 748,614 816,846
---------------- ----------------
40,138,999 816,846
Expenses
Interest on obligations for
the Ekati Diamond Mine 11,259,651 -
General and administrative
and other 1,930,734 1,856,419
Amortization of capitalized
interest and direct
expenditures on the Ekati
Diamond Mine 836,368 -
Cost of mineral properties
abandoned - 2,753
Income taxes:
Current 441,497 256,883
Future 12,011,638 -
---------------- ----------------
12,453,135 256,883
Earnings (loss) for the period 13,659,111 (1,299,209) Earnings (loss) per share, basic $ 0.45 $ (0.04)
Consolidated Balance Sheets As at As at
July 31, 1999 July 31, 1998
---------------- -----------------
(unaudited) (unaudited)
Cash position $ 26,663,682 $ 40,400,088
Working capital 25,736,429 41,826,133
Total assets 362,607,307 307,994,003
Total liabilities 297,349,829 246,055,863
Shareholders' equity 65,257,478 61,938,140
The Ekati(TM) Diamond Mine continues to supply high quality diamonds to the international market. The full production
from the mine for the six months ended July 31, 1999, was sold through BHP Diamonds' Antwerp office.
From the beginning of February to the end of July, a total of 936,300 carats of rough diamonds were sold for $153.48 million
US, an average of about $163 US a carat. During the three months ended July 31, 1999, there were two sales of rough
diamonds, compared with three during the three months ended April 30, 1999. Sales are conducted every five weeks, or 10
times a year.
Dia Met's 29 per cent share of diamond sales for the first six months to the end of July 1999 was $67.06 million Cdn. Dia
Met's equity in earnings from Ekati(TM) for the six months was $39.39 million. There was no comparable revenue from
operations for the same period the previous year. Earnings from operations were $13.6 million, compared to a loss of $1.3
million in the same period the previous year, mainly as a result of the company's investment in the Ekati(TM) Diamond
Mine. The operations to the end of July 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 Ekati(TM). During the initial ramp up, costs
per tonne will be higher due to fixed costs.
Repayment of Dia Met's obligation for development of Ekati(TM) commenced in the six months ended July 31, 1999 and
amounted to $5.1 million. At July 31, 1999 a further $29.1 million had been dedicated for repayment and was applied to the
obligation in August. During the six months the company provided for future income taxes of $12 million to be paid once the
company has fully utilized its existing tax deductions.
Dia Met Minerals Ltd. is a publicly traded mineral exploration and development company with a primary focus on
diamonds. The company owns a 29 per cent interest in the Core Zone joint venture of the Ekati Diamond Mine, Canada's
first diamond mine. BHP Diamonds Inc. is the operator of the mine, which commenced production in October 1998.
In addition to the investment in the Ekati Diamond Mine, Dia Met is carrying out extensive global exploration in Greenland,
Finland, Mauritania and the Northwest Territories.
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS
James E. Eccott, CEO and President
FOR FURTHER INFORMATION PLEASE CONTACT:
Dia Met Minerals Ltd.
Gerald Prosalendis
Vice-President of Corporate Development
(250) 861-8660
(250) 861-3649 (FAX)
E-mail: corporate@diamet.com
Website: www.diamet.com
PHIL |
