A quarter per share USD, not bad....as Tony The Tiger would say...GGGGggREEEaaaat!
RE:
Namibian Minerals Corp -
Namibian Minerals Corporation second-quarter results
Namibian Minerals Corp NMR
Shares issued 37,868,510 1999-07-13 close $6
Wednesday Jul 14 1999
Mr. J.A. Holberton reports
Namibian Minerals Corporation has achieved record six-month earnings reflecting continued strong production, good cost control and improved diamond prices.
Six-month highlights:
earnings of $10.6-million (U.S.), 28 U.S. cents per share;
revenues of $22-million (U.S.);
cash operating costs of $51 (U.S.) per carat;
average realized diamond price of $146 (U.S.) per carat;
diamond production of 192,100 carats; and
1999 production target raised to 260,000 carats.
Earnings for the six months June 30, 1999, rose to $10.6-million (U.S.), 28 U.S. cents per share, compared with a loss of $5-million (U.S.), 13 U.S. cents per share, for the six months ended May 31, 1998. In June, 1999, the company paid its first dividend of two U.S. cents per share.
Diamond production for the second quarter from Feature 019, Luderitz Bay Grant, exceeded target at 76,000 carats, bringing production for the six months to 192,100 carats. The second quarter's mining period was reduced by three weeks of exploration in the Hottentot Bay Grant and a further week to decommission and sail to Cape Town for the scheduled July port call.
Sales for the six months of 151,200 carats generated revenues of $22-million (U.S.) (1998: nil), for an average price of $146 (U.S.) per carat. In the second quarter, sales of 69,400 carats generated revenues of $10.3-million (U.S.) (1998: nil) and Namco's average realized sales price increased by 4 per cent on last quarter to $148 (U.S.) per carat. The sale of diamond stocks (71,400) at quarter-end is expected to generate additional gross revenues in excess of $10-million (U.S.). Direct production costs of $5.4-million (U.S.) (1998: nil), and corporate administration costs of $1.9-million (U.S.) (1998: $2.3-million (U.S.)) were in line with expectations. Cash operating costs (1) were $51 (U.S.) per carat for the six-month period (1998: nil).
After investing activities of $12.6-million (U.S.), cash at quarter-end increased to $6.2-million (U.S.) from $3.9-million (U.S.) a year earlier, reflecting the company's strong cash flow generation. Major investments were NamSSol equipment and other capital assets for $3.7-million (U.S.) and a shareholding in Ocean Diamond Mining Holdings Ltd. for $7.7-million (U.S.) (see below).
Grades have consistently exceeded the company's 1999 mine plan for Feature 019. The company has therefore increased its 1999 production target and expects to mine at least 260,000 carats this year. The revised figure takes account of a one-month port call in July and one month in October and slower mining rates as NamSSol moves into areas of thicker sediment cover.
Revised resource estimates (2) reported on May 10, 1999, for Features 019 and 020 of the Luderitz Bay mining licence increased Namco's total estimated resources to 2.8 million carats. This comprises 836,000 carats of measured resources, 319,000 carats of indicated resources and 1.6 million carats of inferred resources (3).
The company is on target for the commissioning of a second mining system, NamSSol II, early next year. Construction of the tool has commenced. Processing plant design and vessel selection are expected to be finalizd this quarter. Mining is expected to commence in mid-2000. Namco intends to finance the NamSSol II project through a mix of cash reserves and debt.
Namco has purchased a 34.6-per-cent shareholding in Namibian marine diamond producer Ocean Diamond Mining Holdings Ltd. (ODM), for a cost of approximately $18-million (U.S.). The investment was financed from the company's cash resources and through the issue of 1.65 million shares at $3.25 (U.S.) per share. ODM's major assets are 20,078 square kilometres of marine diamond concessions off the coast of Namibia and South Africa, stated reserves and three production vessels. ODM's marine diamond production in 1998 was 63,074 carats.
"Namco's recovery of just over 200,000 carats from one vessel in six months sets new standards for the marine diamond industry. We have proved our technical and operating capabilities and the profitable nature of our business," said chairman of Namco, Alastair Holberton
(1) Includes royalty and marketing costs.
(2) Namco's resource estimates were compiled by Marine & Coastal Geo-Consultants based on mining and sampling data provided by the company and using the resource definitions provided in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC code). Marine & Coastal actively participated in the sampling operations and have confirmed that the recoding of sampling was undertaken in a rigorous and competent manner. The revised model and estimates have been based on reasonable assumptions and rigorous technical evaluation of available information. A full description of the assumptions and evaluation together with the geological environment and relevant regulatory systems of the Luderitz Bay mining licence are contained in the company's annual information form dated April 30, 1999.
(3) The 1999 inferred resource category includes 9,000 carats and 464,000 carats in Features 011 and 018 respectively in Luderitz Bay mining licence and 406,000 carats and 82,000 carats in Feature 022 and 012 respectively in Hottentot Bay Grant, Namibia. These estimates have not been reassessed.
WARNING: The company relies on litigation protection for "forward-looking" statements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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