Don't look now, but something is a shaking (ggggggg)
DiamondWorks posts $3.03-million (U.S.) profit in Q3
DiamondWorks Ltd (2) DMW
Shares issued 52,120,015 Oct 30 close $0.47
Wed 30 Oct 2002 News Release
Mr. J. Scott Drever reports
DIAMONDWORKS LTD. ANNOUNCES THIRD QUARTER EARNINGS OF US $0.0 ...
DiamondWorks has released unaudited financial results for the third quarter
and nine months ended Aug. 31, 2002. The substantial improvement of results
over comparative periods reflects the consolidation of the financial
results of its recently acquired subsidiary Otterbea International
(Proprietary) Limited. The company owns 80.1 per cent of Otterbea. All
figures are stated in U.S. dollars.
Net income for the third quarter ended Aug. 31, 2002, after adjustments for
non-controlling interests was $3,033,809 or five cents per share compared
with a net loss of $859,152 or (two cents) per share for the third quarter
ended Aug. 31, 2001. The increase was attributable almost entirely to an
increase in sales. Net income for the nine month period ended Aug. 31,
2002, after adjustments for non-controlling interests was $2,128,605 or
four cents per share compared with a loss of $2,776,703 or (five cents) per
share for the nine-month period ended Aug. 31, 2001.
Revenues for the third quarter and nine-month period ended Aug. 31, 2002,
were $32,761,783 compared with nil revenues for the third quarter and
nine-month period ended Aug. 31, 2001. The improved third quarter and
nine-month revenues were driven by the trading activities of Otterbea and
in particular the activities under the exclusive contact with the
government of Zambia to manage the importation, refinement and selling of
petroleum products in Zambia.
As at Aug. 31, 2002, the company's balance of cash and cash equivalents
increased to $251,102 from $24,819 as at Nov. 30, 2001. The company's
working capital deficit decreased to $7,595,614 at Aug. 31, 2002, from
$10,698,356 as of Nov. 30, 2001. Working capital included an increase in
short-term loans from Lyndhurst Limited to $2,979,502 from $1,787,925 at
Nov. 30, 2001.
Tony Teixeira, chief executive officer of the company, stated: "The
substantial improvement in the financial condition of the company is due to
the trading and logistical support activities of its newly acquired
subsidiary, Otterbea International. We acquired Otterbea with the
expectation that it would provide logistical advantages and expertise for
the company's mining activities in Africa as well as provide early,
positive cash flow to the company. These initial, positive financial
results serve to confirm our rationale for the acquisition of Otterbea.
"We expect our revenue performance to continue for the remainder of the
year and are pursuing additional contracts with other countries similar to
the oil management contract in place with Zambia to enhance Otterbea's
performance in 2003. Our strategy will be to utilize the cash flow derived
from Otterbea's trading activities to fund the development and production
of diamonds from our substantial mineral property interests in Sierra
Leone, Angola and Central African Republic. We are pleased with the initial
results of the implementation of our strategy and look forward to the
continued profitability of the company and the related increase in
shareholder value." |
