Dia Met Minerals Announces First Annual Results From Ekati Diamond Mine, Net Earnings Reach $47.5 Million Or $1.56 Per Share.Business Editors KELOWNA Kelowna (kĭlō`nə), city (1991 pop. 75,950), S British Columbia, Canada, on Okanagan Lake. Kelowna is a tourist resort and serves as a trade center for a fruit-growing and lumbering area. , B.C.--(BUSINESS WIRE)--May 3, 2000 Dia Met Minerals Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DMM See multimeter. DMM - Digital Multimeter .A.) (AMEX AMEX See: American Stock Exchange :DMM.A) (AMEX:DMM.B) (TSE:DMM.B.) today announced net earnings of $47.5 million or basic earnings per share of $1.56 for the fiscal year ended Jan. 31, 2000, which represents the first full year of production from the Company's 29 per cent-owned Ekati Ekati may refer to:
Dia Met's equity in earnings from Ekati (TM) totalled $99.8 million for the year. "These results establish Ekati(TM) as a world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. asset with margins that are exceptional for Canada's mining sector," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Eccott, Dia Met's President and Chief Executive Officer. "With many years of profitable production ahead, Ekati(TM) underpins Dia Met's stature stature /sta·ture/ (stach´ur) the height or tallness of a person standing.stat´ural stat·ure n. The height of a person. stature the height of an animal in the standing position. as Canada's premier diamond company, and provides us with a solid foundation for sustainable long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. We intend to lay out a clear and aggressive plan to build on this foundation in the months ahead." The earnings per share figure includes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. positive adjustment of $0.24 per share, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the recognition of future income tax assets earned prior to the start of fiscal 2000. Without this adjustment, Dia Met's net profits for fiscal 2000 would have totalled approximately $40.2 million, equating e·quate v. e·quat·ed, e·quat·ing, e·quates v.tr. 1. To make equal or equivalent. 2. To reduce to a standard or an average; equalize. 3. to basic earnings per share of $1.32. For the previous fiscal year ended Jan. 31, 1999, Dia Met reported a net loss of $6.5 million or a loss of $0.21 per share. Dia Met's share of earnings from Ekati(TM) diamond sales totalled $1.7 million for fiscal 1999. In total, Ekati(TM) produced 2.51 million carats of diamonds for the year ended Jan. 31, 2000, and sold 2.24 million carats at an average price of $168.05 US per carat CARAT, weights. A carat is a weight equal to three and one-sixth grains, in diamonds, and the like. Jac. L. Dict. See Weight. . Dia Met's share of diamond sales from Ekati (TM) for the year amounted to $161.2 million from which $48.2 million for cost of sales and $13.2 million for amortization and depreciation were deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. to yield equity in earnings of $99.8 million. Cost of sales includes stripping, mining, processing, overhead, administration, sorting, and selling costs. In the previous year, production at Ekati amounted to 0.42 million carats with sales of 68,500 carats at an average price of $123.62 US per carat. The realized price of $168.05 US per carat for fiscal 2000 was 29 per cent higher than the $130 US per carat price upon which the 1997 Ekati(TM) feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. was based. "The strong prices we enjoyed in fiscal 2000 partly reflect the extraordinarily high quality of the Ekati(TM) stones," said Mr. Eccott. "If you compare Ekati(TM) with almost any other hard rock diamond mine worldwide, the value per carat we achieved is clearly at the high end of the scale. Healthy global economic conditions and buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. consumer demand also contributed to strong prices, and we continue to experience a strong market in the early months of fiscal 2001," he added. Dia Met's outstanding debt obligations for Ekati(TM) totalled $204.8 million at Jan. 31, 2000, down from $276.2 million a year earlier. The reduction of $71.5 million or 26 per cent reflects the net impact of $93.9 million of debt repayments in fiscal 2000, offset by interest charges of $21.1 million and $1.3 million of development costs. Since the year end, a further repayment of $24.1 million has been made toward Dia Met's debt obligation. Dia Met has applied 100 per cent of its share of net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. cash flows to repayment of these obligations since the start of production at Ekati(TM) in October October: see month. 1998. Dia Met's total expenses for the year ended Jan. 31, 2000 were $27.5 million, up from $11.4 million for fiscal 1999. The increase was due primarily to interest on the obligations for Ekati(TM). During fiscal 2000 the Company spent $9.6 million on mineral properties, exploration and development. This compares with expenditures of $6.6 million in fiscal 1999. The increase in fiscal 2000 reflects the impact of new projects in Mauritania Mauritania (môrĭtā`nēə), officially Islamic Republic of Mauritania, republic (2005 est. pop. 3,087,000), 397,953 sq mi (1,030,700 sq km), NW Africa. and Victoria Island, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Dia Met also spent $7.4 million in fiscal 2000 on shares repurchased under normal course issuer bids, up from $5.5 million of comparable expenditures in fiscal 1999. On Oct. 25, 1999 the Company cancelled 136,000 class A shares and 331,400 Class B shares that were repurchased under these bids. Summarized financial highlights (reported in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents ) compared with the previous fiscal year are as follows:
CONSOLIDATED BALANCE SHEETS
January 31, 2000 and 1999
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2000 1999
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Assets
Current assets
Cash $ 2,428,089 $ 93,251
Temporary investments 15,486,682 34,062,051
Amounts receivable 618,242 1,546,252
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18,533,013 35,701,554
Capital assets 2,473,298 2,492,812
Investment in the Ekati Diamond Mine 279,826,767 274,028,176
Mineral properties
Mineral and exploration interests 790,888 752,497
Deferred exploration and
development costs 26,349,037 16,768,965
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27,139,925 17,521,462
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$ 327,973,003 $ 329,744,004
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued
liabilities $ 868,364 $ 1,384,947
Income taxes payable - 197,000
Current portion of obligations
for the Ekati Diamond Mine 56,335,953 -
Future income taxes payable 14,298,119 -
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71,502,436 1,581,947
Obligations for the Ekati Diamond Mine 148,435,091 276,239,228
Future income taxes payable 11,707,115 -
Shareholders' equity
Share capital 79,434,688 76,319,432
Shares repurchased under normal
course issuer bid (3,335,698) (5,471,353)
Retained earnings (deficit) 20,229,371 (18,925,250)
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96,328,361 51,922,829
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$ 327,973,003 $ 329,744,004
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CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (DEFICIT)
Years ended January 31, 2000 and 1999
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2000 1999
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Revenue
Equity in earnings of the Ekati
Diamond Mine $ 99,753,695 $ 1,738,161
Aircraft operations 247,300 284,860
Gain on disposal of capital assets - 39,496
Interest and other income 2,047,366 3,515,394
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102,048,361 5,577,911
Expenses
Interest on obligations for the
Ekati Diamond Mine 21,144,787 5,189,876
Amortization of capitalized interest
and direct expenditures on the Ekati
Diamond Mine 1,672,736 418,184
General and administrative 3,298,041 3,400,738
Write down of temporary investments 1,112,293 -
Depreciation 189,597 164,971
Aircraft operations 111,384 132,872
Cost of mineral properties abandoned - 2,047,792
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27,528,838 11,354,433
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Earnings (loss) before income taxes 74,519,523 (5,776,522)
Income taxes
Current 1,014,363 677,895
Future 26,005,234 -
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27,019,597 677,895
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Net earnings (loss) for the year 47,499,926 (6,454,417)
Deficit, beginning of year (18,925,250) (12,470,833)
Excess of cost of shares repurchased and
cancelled over original average issue (8,345,305) -
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Retained earnings (deficit),
end of year $ 20,229,371 $ (18,925,250)
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Net earnings (loss) per share, basic $ 1.56 $ (0.21)
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Net earnings per share, fully diluted $ 1.49 $ N/A
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CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended January 31, 2000 and 1999
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2000 1999
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Cash provided by (used in)
Operations
Net earnings (loss) for the year $ 47,499,926 $ (6,454,417)
Items not involving cash:
Depreciation and amortization 1,862,333 583,155
Future income taxes 26,005,234 -
Cost of mineral properties
abandoned - 2,047,792
Gain on disposal of capital assets - (39,496)
Undistributed earnings of
the Ekati Diamond Mine (6,194,427) (1,738,161)
Changes in non-cash operating
working capital
Amounts receivable 928,010 (7,559)
Accounts payable and accrued
liabilities (516,583) 445,813
Income taxes payable (197,000) (292,675)
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69,387,493 (5,455,548)
Investing activities
Decrease in temporary investments 18,575,369 728,792
Purchases of capital assets (170,083) (142,210)
Expenditures on mineral and
exploration interests (38,391) (185,925)
Expenditures on deferred exploration
and development (9,869,232) (9,538,238)
Investment in the Ekati Diamond Mine (1,276,900) (100,953,829)
Proceeds from disposal of capital assets - 179,803
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7,220,763 (109,911,607)
Financing activities
Option payments applied to
expenditures on mineral properties 289,160 3,138,488
Increase in obligations for the
Ekati Diamond Mine 22,402,052 106,143,705
Repayment of obligations for the
Ekati Diamond Mine (93,870,236) -
Shares issued for cash 4,350,599 3,864,581
Shares repurchased under normal course
issuer bids (7,444,993) (5,471,353)
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(74,273,418) 107,675,421
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Increase (decrease) in cash 2,334,838 (7,691,734)
Cash, beginning of year 93,251 7,784,985
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Cash, end of year $ 2,428,089 $ 93,251
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Dia Met Minerals Ltd. is a publicly traded mineral exploration and development company with a primary focus on diamonds. The company owns a 29 per cent interest in the Core Zone joint venture of the Ekati(TM) Diamond Mine, Canada's first and only diamond mine. BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. Diamonds Inc. is the operator of the mine, which commenced production in October 1998. In addition to the investment in the Ekati(TM) Diamond Mine, Dia Met is carrying out extensive global exploration in Mauritania, Greenland Greenland, Green. Kalaallit Nunaat, Dan. Grønland, the largest island in the world (2005 est. pop. 56,000), 836,109 sq mi (2,166,086 sq km), self-governing overseas administrative division of Denmark, lying largely within the Arctic Circle. , Finland Finland, Finnish Suomi (swô`mē), officially Republic of Finland, republic (2005 est. pop. 5,223,000), 130,119 sq mi (337,009 sq km), N Europe. and the Canadian North
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS James E. Eccott, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President The American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) have neither approved nor disapproved the information contained in this release. |
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