Thanks George - ABER now has a value for Snap Lake on the basis of the DeBeers offer of $2.25 per Aber share
June 27 - Aber Resources Ltd. (NASDAQ-ABERF, TSE-ABZ)
Diavik Diamond Project
----------------------
During the first quarter of 2000, the Diavik Diamonds Project, Aber's
core asset, has made further progress from the planning stage towards project
implementation. The permitting process for the project is now nearing
completion. A Class "A" Water License, required for the construction and
operation of the mine, was issued in draft in May. The project manager, Diavik
Diamond Mines Inc., a subsidiary of Rio Tinto plc., submitted proposed
amendments in late June with the expectation of a final license being issued
by the end of July. This will leave only the Fisheries Authorization and the
Navigable Waters Permit, both expected to be issued shortly by the Department
of Fisheries and Oceans.
Site preparation work continues at the Diavik mine site in parallel with
final engineering design in the Vancouver office of Nishi Khon/SNC-Lavalin.
Both site preparation and engineering progress are comfortably within budget
and schedule. Although the year began with difficulties resulting from
permitting delays that delayed the transportation of supplies and equipment
over the seasonal winter road, a cooperative weather window extended road
usage into mid April. This allowed the fuel, supplies and material necessary
for the year 2000 programme to be positioned at the mine site. Some 995 truck
loads in all were successfully delivered including nine million litres of fuel
together with the necessary storage tanks.
Camsell Lake Diamond Project (Snap Lake Deposit), NWT Update
------------------------------------------------------------
On June 26th, De Beers announced a bid for all of the outstanding shares
of Winspear Diamonds Inc. The De Beers bid puts an after tax value on
Winspear's share of the project of $259 million. This in turn assigns a value
of approximately $125 million to the Aber project interest on an after tax
basis or $2.25 per Aber share. Aber is fully committed to maintaining its
32.24% interest in the Snap Lake Project which is currently undergoing
advanced exploration to allow the completion of a feasibility study early in
2001.
Financial Results
-----------------
For the quarter ended April 30, 2000, Aber reports net earnings of
$732,278 or 1 cent per share compared with a restated loss of $18,698 or nil
per share. Revenue totaled $2,473,931 compared with $1,492,737 a year earlier.
The increase in revenue and net income in the latest period are due to higher
cash balances available for investment.
At the end of the first quarter, Aber's working capital was $168,822,038
compared with $194,131,544 at January 31, 2000. This $25 million decrease is
principally attributable to Aber's share of deferred mineral property costs
for Diavik ($17 million) and Camsell Lake ($9 million). In the first quarter,
Aber has accrued for its full entitlement of 32.24% for the 2000 Camsell Lake
program even though at the end of the quarter, Aber had only been invoiced and
paid for 15% of the program.
Company Change of Name
----------------------
The Company is proposing to change its name from "Aber Resources Ltd." to
"Aber Diamond Corporation", subject to shareholder approval at Aber's Annual
Meeting of Shareholders on July 27, 2000. This change of name is to better
reflect the Company's strategy to become a vertically integrated diamond
marketing company.
As stated in Aber's 1999 Annual Report, the Company sees important
commercial advantage in positioning Aber not as a mining company but as a
Canadian diamond marketing company. Aber has developed the business
relationships that enable the pursuit of this strategy. Aber is linked to
world leaders in all aspects of its business:
- Rio Tinto, plc - the largest mining company in the world;
- Overseas Diamonds N.V. of Antwerp, Belgium - an established
manufacturer of diamonds, with whom Aber has developed an association;
and
- Tiffany & Co. - the largest retailer in the world of the high-quality
polished diamonds that will be the finished product from Aber's share
of the Diavik diamond production.
Management Appointments
-----------------------
Robert A. Gannicott, Aber's President and Chief Executive Officer, is
pleased to announce the appointment of S. Caroline Glasbey as Director,
Investor Relations. Ms. Glasbey is a member of the Ontario Board of Directors
of the Canadian Investor Relations Institute. Mr. Gannicott is also pleased to
announce the appointment of Matthew L. Manson, PhD, to Director, Marketing.
Consolidated financial statements follow.
ABER RESOURCES LTD.
Consolidated Balance Sheets
(Expressed in Canadian dollars)
April 30, 2000 and January 31, 2000
-------------------------------------------------------------------------
Apr 2000 Jan 2000
-------------------------------------------------------------------------
unaudited
Assets
Current assets:
Cash and cash equivalents $ 178,771,391 $ 118,160,833
Short-term investments 78,106,036
Accounts receivable 468,752 3,192,420
Prepaid expenses 200,149 123,594
---------------------------------------------------------------------
179,440,292 199,582,883
Deferred mineral property costs 141,007,554 114,838,384
Investments in securities 41,961 41,961
Furniture and equipment 417,364 53,750
-------------------------------------------------------------------------
$ 320,907,171 $ 314,516,978
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and
accrued liabilities $ 10,618,254 $ 5,451,339
Future income tax liability 14,791,426 14,291,426
Shareholders' equity:
Share capital 320,671,149 320,671,149
Deficit (25,173,658) (25,896,936)
---------------------------------------------------------------------
295,497,491 294,774,213
-------------------------------------------------------------------------
$ 320,907,171 $ 314,516,978
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying note to the consolidated financial statements.
On behalf of the Board:
Signed "John C. Lamacraft" Signed "Robert A. Gannicott"
-------------------------- ----------------------------
John C. Lamacraft Robert A. Gannicott
Director Director
ABER RESOURCES LTD.
Consolidated Statements of Earnings
(Expressed in Canadian dollars)
Three months ended April 30, 2000 and 1999
Unaudited
-------------------------------------------------------------------------
2000 1999
-------------------------------------------------------------------------
(Restated)
Revenue:
Interest $ 2,473,931 $ 1,492,737
Expenses:
Depreciation 2,688 11,142
General and administrative 1,134,013 1,169,140
---------------------------------------------------------------------
1,136,701 1,180,282
Earnings before taxes 1,337,230 312,455
Income taxes 613,952 331,153
-------------------------------------------------------------------------
Net earnings/(loss) 723,278 (18,698)
-------------------------------------------------------------------------
Earnings/(loss) per share $ 0.01 $ (0.00)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ABER RESOURCES LTD.
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
Three months ended April 30, 2000 and 1999.
Unaudited
-------------------------------------------------------------------------
2000 1999
-------------------------------------------------------------------------
(Restated)
Cash provided by (used in):
Operations:
Net earnings/(loss) $ 723,278 $ (18,698)
Items not involving cash:
Depreciation 2,688 11,142
Future income taxes 500,000 113,745
Change in non-cash operating
working capital 2,597,740 267,266
---------------------------------------------------------------------
3,823,705 373,455
Investments:
Deferred mineral property costs (20,952,883) (4,172,174)
Furniture and equipment (366,300) (22,218)
Money market instruments 78,106,036 (63,437,919)
---------------------------------------------------------------------
56,786,853 (67,632,311)
Increase/(decrease) in cash
and cash equivalents 60,610,558 (67,258,856)
Cash and cash equivalents,
beginning of period 118,160,833 72,410,329
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 178,771,391 $ 5,151,473
-------------------------------------------------------------------------
-------------------------------------------------------------------------
1. Restatement:
As disclosed in the audited financial statements for the year
ended January 31, 2000, the Company has adopted the new Canadian
Institute of Chartered Accountants recommendations with respect to
Income Taxes and Statement of Cash Flows. The statements of
earnings and cash flows for the three months ended April 30, 1999
have been restated to retroactively reflect these changes in
accounting policy.
Share Capital Information at June 26, 2000:
Authorized - 100,000,000
Issued & Outstanding - 54,531,320
Fully Diluted - 56,213,320
%SEDAR: 00003786E
-0- 06/27/2000
For further information: Robert A. Gannicott, President & Chief Executive Officer - (416) 362-2237 (ext. 225); or Andrew B. Adams, Vice President & Chief Financial Officer - (416) 362-2237 (ext. 230); or S. Caroline Glasbey, Director, Investor Relations - (416) 362-2237 (ext. 235) |
