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May 20, 1999
Fiscal Year-end Report and Diavik Update
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ABER RESOURCES LTD. (TSE-ABZ, NASDAQ-ABERF) announces that for the year ended January 31, 1999, the Company had net income of $1,491,916 or $0.03 per share, compared with a year-earlier loss of $1,645,804 or $0.04 per share. Revenue totaled $5,019,949 compared with $1,463,806 a year earlier.
On Aber's 40%-owned Diavik Diamonds Project, a draft report of the Federal Government's Comprehensive Study has been placed on the public record in Yellowknife, NWT. The draft, which remains subject to revision, indicates that the project will not cause any significant or unmitigable environmental or socio-economic effects. The final Comprehensive Study Report is expected in June, followed by 30 days of public comment. The Minister of the Environment is expected to issue a decision with regard to the project in July after considering the Comprehensive Study Report and the public comments.
The latest year's net income includes a writedown of $75,352 of investments in securities, compared with year-earlier writedowns of $741,280 for a non-core, non-diamond property and $185,963 on investments in securities. The revenue in both years is attributable to interest income. The increase in revenue and the net income in the latest year are due to higher cash balances available for investment. Aber completed a $102.9 million ($98.5 million after expenses) equity financing in June 1998.
At the fiscal year-end, Aber had working capital of $119,535,915 compared with $31,283,730 a year earlier. Aber's cash and short term investments totaled $121,204,829 as of January 31, 1999, compared with $30,870,925 a year earlier.
For the Diavik Diamonds Project, Aber's share of deferred mineral property costs for the year ended January 31, 1999 amounted to $15,300,497 compared with $13,475,053 a year earlier. The costs in the latest year were mainly for the feasibility study, the environmental review process and exploration. Aber's share of cumulative costs for Diavik amounted to $82,204,137 as of January 31, 1999.
The Diavik Diamonds Project is located about 300 kilometres northeast of Yellowknife and 35 kilometres southeast of the BHP Ekati Diamond Mine. The remaining 60% interest in the Diavik Diamonds Project is owned by Yellowknife-based Diavik Diamond Mines Inc., a subsidiary of Rio Tinto plc of London. DDMI is the project operator.
The Diavik Diamonds Project feasibility study is expected to be completed following the Minister of Environment's decision on the project. Production is scheduled to begin in 2002, subject to a favourable feasibility study, environmental approval by the Canadian government and a production decision by the owners. Aber retains the right to market its 40% share of the diamond production.
For further information contact:
Kenneth G. Hanna, President and Chief Executive Officer
R. Michael Jones, Vice-President, Corporate Development
Alan Bayless, Manager, Investor Relations and Corporate Affairs
Phone: 604-682-8555 |
