Thanks Frank, say since were sharing press releases, here is a continuation from my top alluvial pick for 99.
LONDON, April 15 /PRNewswire/ -- Namibian Minerals Corporation (NAMCO) (Nasdaq: NMCOF; Toronto: NMR; Namibia: NMC) is pleased to announce its production and earnings for the quarter ended 31 March 1999.
Highlights of the Quarter
-- Earnings of US$5.2 million; equivalent to US$0.14 per share.
-- 89% increase in diamond production to 116,100 carats.
-- 103% increase in revenues to US$11.7 million.
-- 7% increase in average diamond price to US$143 per carat.
-- 1999 production target raised to 200,000 carats.
-- Exploration conducted in Namibian concessions
Summary Table of Production and Sales Results
Data Period % Change
Q1 1999 Q4 1998(a)
Diamonds produced (carats)* 116,100 61,300 + 89%
Average diamond size (carats) 0.33 0.37 - 11%
Carats sold* 81,800 42,800 + 91%
Sales Value (USD) 11,662,000 5,751,000 + 103%
Average price per carat (USD) $143 $134 + 7%
Stock at quarter end (carats)* 64,800 30,500
* All figures rounded to nearest 100
(a) Since the last quarterly report, the Company has changed its reporting
period to 31 December. Figures have been restated to show data from 1
October to 31 December 1998.
Review of Operations
This quarter mining activities continued in Feature 019 in the Company's Luderitz Bay Mining Licence. A quarterly record of 116,100 carats was produced.
Since the start of operation last year, diamond production has consistently exceeded expectations based on the original resource grade estimates derived from the sampling programme results. Review of production data indicates that the resource potential of the deposit has been underestimated.
The Company has therefore increased its production target for 1999 from 150,000 carats to 200,000 carats. The revised target takes account of further exploration and a planned two month port call in the third quarter for vessel classification, routine maintenance and operational enhancements.
According to Marine & Coastal Geo-Consultants, two main factors contributed to the underestimation of the deposit's potential. The original grade calculation method was based on 10 sq.m. point sampling results but for geostatistical estimation purposes did not incorporate the grades of the larger sized 100 sq.m. bulk samples, which were significantly higher. Secondly, the technical limitations of the Namrod sampling tool did not enable a second layer of mineralisation in Feature 019 to be fully sampled.
The NamSSol mining system is able to mine both of the mineralised layers. Mining experience indicates that these layers are common in the area mined to date, but the extent has not been defined.
The average diamond size of 0.33 carats was in line with expectations derived from sampling data. The stone size ranged from 0.1 - 10.3 carats.
Operational performance of the NamSSol mining system continued to meet expectations.
A total of 242,170 carats have been mined since the start of operation in April 1998. This result firmly establishes the Company's expertise in marine diamond mining and the quality of its resource.
Exploration Activities
In the final week of the quarter, a three week trench bulk sampling programme commenced in Feature 022 of the Hottentot Bay Grant using NamSSol deployed from MV Kovambo with the objective to upgrade the existing inferred resource of 400,000 carats. The programme comprises ten sampling trenches of 13m. wide in lengths varying from 40m. to 200m. Results will be reported on completion of evaluation.
Geotechnical surveys were conducted on Feature 020 of the Luderitz Bay Mining Licence. Ten soil penetration tests were carried out, providing additional information on the geotechnical requirements for NamSSol II.
Financial Results(b)
Earnings for the quarter were US$5.2 million (1998: Loss of US$3.1 million). Earnings per share were US$0.14 (1998: Loss of US$0.08). The Company's cash position at quarter end was US$7.6 million (1998: $6.4 million).
Diamond sales of 81,800 carats (1998: nil) generated revenues of US$11.7 million (1998: nil). The average realised diamond price was US$143 per carat, which represents an increase of 7% on the previous quarter ended December 1998. Diamond stocks at quarter end were 64,800 carats (1998: nil). Sales of these stocks are expected to generate additional gross revenues in excess of US$9 million.
Total costs were US6.6 million (1998: US$3.3 million) which include operating costs of US$3.9 million (1998: nil), marketing costs of US$245,000 (1998: nil), corporate administration and support costs of US$1.1 million (1998: US$1.3 million).
(b) Comparative figures are for the three months ended 28 February 1998.
Production commenced subsequent to this period.
Corporate Activities
The Company's mining vessel MV Kovambo was officially named by Mrs. Kovambo Nujoma in the presence of His Excellency The President Dr. Sam Nujoma. The President praised the Company's achievements and its standing with the Namibian Government.
The Management Contract of Alexkor, the South African State-owned diamond mine, for which the Company tendered, was awarded to a consortium of South African and overseas interests.
Outlook
For the current year production is now expected to be 200,000 carats. The revised target takes account of further exploration and a planned two month port call in the third quarter for vessel classification, routine maintenance and operational enhancements.
The NamSSol II project progressed satisfactorily during the quarter. The estimated total project cost is US$25 million. The Company intends to finance the capital cost through a mix of cash flow and debt.
Chairman of Namco Alastair Holberton said: ''These excellent quarterly results reinforce our belief that Namco has one of the richest diamond areas off the coast of Namibia. Our NamSSol mining technology is a major innovation and places the Company at the forefront of the Industry.''
ON BEHALF OF THE BOARD OF DIRECTORS OF NAMIBIAN MINERALS CORPORATION
J.A.Holberton
Chairman & Chief Executive Officer
None of the Nasdaq National Market, The Toronto Stock Exchange, nor the Namibian Stock Exchange has reviewed the information herein and they do not accept responsibility for the adequacy or the accuracy of the above.
This media release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are operational factors, general economic conditions and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchanges Commission.
Namibian Minerals Corporation
Consolidated Balance Sheets
United States Dollars
ASSETS As at 31 March As at 28
1999 February 1998
$000 $000
Current Cash 7,647 6,401
Accounts receivable 394 1,245
Prepayments 1,060 150
Inventories 2,990 587
Marketable securities 678 780
12,769 9,163
Exploration and development costs (i) 12,288 25,591
Capital assets, net of amortization (i) 28,081 14,534
Other assets 224 214
53,362 49,502
LIABILITIES
Current Accounts payable
and accrued liabilities 2,461 3,197
Current portion of long term debt 286 278
2,747 3,475
Long term debt -- 257
2,747 3,732
SHAREHOLDERS' EQUITY
Share capital 53,834 53,746
Exchangeable debenture 4,787 4,552
Contributed surplus 459 459
Cumulative foreign exchange adjustment (2,977) (1,365)
Deficit (5,488) (11,622)
50,615 45,770
53,362 49,502
Note
(i) Exploration and development costs of US$15,619,000 which relate to the
mining operation were reclassified under capital assets as at
31 December 1998.
Namibian Minerals Corporation
Consolidated Statements of Operations and Deficit
United States Dollars
For the 3 months For the
ended 31 March 3 months ended
1999 28 February
$000 1998
$000
Income Revenue from diamond sales 11,662 --
Interest received 77 141
Gain on sale of marketable securities -- 8
11,739 149
Expenses Direct production costs 3,949 --
Marketing costs 245 --
General office costs,
including salaries 1,095 1,250
General exploration and
development costs -- 1,909
Amortization - capital assets 1,257 116
- goodwill 3 3
Interest payable 8 11
(6,557) (3,289)
Earnings (loss) for the period 5,182 (3,140)
Deficit - beginning of period (10,607) (8,422)
Accretion on equity component of
exchangeable debenture (net of tax
of $27,000; 28 February 1998:
$26,000) (63) (60)
Deficit - end of period (5,488) (11,622)
Earnings (loss) per share for the period $ $
Basic 0.14 (0.08)
Fully diluted 0.13 (0.08)
Weighted average number of share
outstanding in thousands 37,869 37,779
SOURCE: Namibian Minerals Corporation
|
