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Gold/Mining/Energy : Namibian Minerals Corporation -- Ignore unavailable to you. Want to Upgrade?

To: PHILLIP FLOTOW who wrote (82)	11/1/1999 9:49:00 AM
From: PHILLIP FLOTOW	Read Replies (1) \| Respond to of 124

Monday November 1, 9:15 am Eastern Time Company Press Release SOURCE: Namibian Minerals Corporation Namibian Minerals Corporation Announces Strong Nine Month Results LONDON, Nov. 1 /PRNewswire/ -- Namibian Minerals Corporation (Namco) (Nasdaq: NMCOF - news; TSE: NMR - news; Namibia: NMC), Africa's second largest marine diamond producer, today announced strong earnings for the nine months ended 30 September 1999 attributed to the strength of its production, continued cost control and positive growth in the diamond market. Nine month highlights -- Earnings of US$16 million, US$0.42 per share on revenues of US$35 million -- Average sales price rose 7% to US$159 per carat -- Diamond production of 207,800 carats -- Acquisition of Ocean Diamond Mining Holdings Ltd. (ODM), Africa's third largest marine diamond producer -- Joint venture agreement with German engineering group Wirth to develop exploration technology for operation in 2000 Earnings for the nine months ended 30 September 1999 were US$16.0 million, US$0.42 per share, compared to a loss of US$4.0 million, US$0.10 per share, for the nine months ended 31 August 1998. Revenues from the sale of 229 300 carats rose to US$34.4 million from US$4.8 million in the year earlier period. In the third quarter, sales of 78,100 carats generated revenues of US$12.4 million (1998: US$4.8 million) for an average sales price of US$159 per carat, an increase of 7% on the previous quarter's diamond price. Diamond production for the nine months was 207,800 carats. Namco's 1999 production target is 260,000 carats. Production for the third quarter at 15,700 carats was in line with expectation after the Company completed a port call in July and August for biennial classification of its mining vessel MV Kovambo, installation of an upgraded launch and recovery system and enhancements to the seabed crawler NamSSol's undercarriage and suction boom. Following a further two weeks of commissioning, NamSSol resumed full operation. The Company has cancelled its previously scheduled October port call and production should benefit from a full fourth quarter performance. Namco Chairman and CEO Alastair Holberton said: ``We enter the final quarter confident of doubling our 1998 production of 126,000 carats by year end. Our NamSSol technology has proved to be a major development for the marine diamond industry.' Operating cash flow for the nine months was US$20.6 million. This cashflow has been reinvested in capital items (US$7.3 million) including the enhancements to NamSSol and its launch and recovery system (US$4 million) and initial expenditure on Nam II, the Company's second marine diamond mining system (US$2.6 million). The Company also spent US$14 million from cashflow to acquire its 34% shareholding in ODM, Africa's third largest marine diamond producer. Diamond stocks at period end had a gross revenue value in excess of US$1 million. Subsequent to quarter end, Namco announced that its offer for ODM had successfully closed with ownership of 92% of ODM shares. ODM's assets include 20,000 sq. km. of marine diamond concessions, three mining vessels, US$10 million in cash and no debt. Namco's technological and operational expertise is expected to substantially boost current production levels (year ended 1999: 64,000 carats). Namco funded the offer through a mix of its own cash resources, debt and new equity. Subsequent to quarter end, the Company completed a private placement of 2.7 million shares to raise an additional US$11 million. Dilution will be less than 15% of the shares in issue at quarter end. Cash resources in the enlarged Group following the placement are in excess of US$20 million. Following assessment of exploration results in the Hottentot Bay Grant, Namco increased its total estimated resources to 2.9 million carats. This comprises 942,000 carats of measured resources, 484,000 carats of indicated resources and 1,537,000 carats of inferred resources. Further exploration is planned for next year with the development of a US$1.5 million exploration tool, which is currently being built by Wirth of Germany, a pioneer in seabed drilling technology. Namco does not currently anticipate that it will experience any significant disruption to its business as a result of year 2000 issues and has contingency plans in place. ``Our focus on earnings growth, strategic acquisition and innovative technological development is proving highly successful. We continue to benefit from excellent performance in these areas,' said Alastair Holberton. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF NAMIBIAN MINERALS CORPORATION J.A.Holberton Chairman & Chief Executive Officer Namco's resource estimates were calculated by Marine & Coastal Geo-Consultants cc (Senior Author and Qualified Person: R.De Decker, M.Sc., Pr.Sci.Nat.) 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 recording of sampling was undertaken in a rigorous and competent manner. The revised model and estimates have been based on reasonable assumptions and evaluation. A description of these assumptions and evaluation together with the geological environment and relevant regulatory systems of the Luderitz Bay Mining Licence and Hottentot Bay Grant are contained in the Company's Annual Information Form dated 30 April 1999. The grade ranges of the resources are contained in the Company's media release dated 17 August 1999. Only reserves, as opposed to resources, have demonstrated economic viability. Neither The Nasdaq Stock Market, The Toronto Stock Exchange, nor the Namibian Stock Exchange has reviewed the information herein and do not accept responsibility for the adequacy or the accuracy of the above. SOURCE: Namibian Minerals Corporation PHIL