Dia Met Minerals Announces Nine-Month Results from Ekati Diamond Mine; Net Earnings Up More Than 40 Per Cent Over Prior-Year.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , B.C.--(BUSINESS WIRE)--Dec. 14, 2000 Dia Met Minerals Ltd. (AMEX AMEX See: American Stock Exchange :DMM See multimeter. DMM - Digital Multimeter .A)(AMEX:DMM.B)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DMM.A.)(TSE:DMM.B.) today announced net earnings of $37.5 million or $1.22 per basic share for the nine months ended October October: see month. 31, 2000, compared to net earnings of $26.4 million or $0.88 per basic share for the same period in 1999. Dia Met's equity in earnings from its 29 per cent-owned Ekati Ekati may refer to:
In total, Ekati(TM) produced 1,977,000 carats of diamonds for the nine months ended October 31, 2000, and sold 1,937,000 carats at an average price of US$169 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. . Production at Ekati(TM) for the same period the previous year totalled 1,939,000 carats, with sales of 1,757,000 carats at an average price of US$165 per carat. There were eight sales of rough diamonds during both nine-month periods. Three sales were held during the first quarter ended April 30, two sales during the second quarter ended July July: see month. 31, and three sales during the third quarter ended October 31, 2000. Dia Met's share of diamond sales from Ekati(TM) for the latest nine-month period totalled $142.4 million, from which $41.4 million was 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. for cost of sales, and $12.9 million for amortization and depreciation, yielding equity in earnings of $88.1 million. Dia Met's outstanding net debt obligations for Ekati(TM) totalled $133.8 million at October 31, 2000, down from $204.8 million at January January: see month. 31, 2000. This reflects the net impact of $82.7 million of debt repayments for the period, offset by $11.7 million of interest charges and other costs. The Company is currently applying 90 per cent of its share of 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 from Ekati(TM) to debt repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan , and 10 per cent to fund corporate activities. On October 17, 2000, the Company's Board of Directors announced that it was initiating a process to seek bids for the purchase of all the outstanding shares of the Company. The decision followed the Board being advised by two shareholders, who together own a 38 per cent voting interest Voting interest in business and accounting is a percentage of voting stock owned. This notion is different from economic interest that refers to a percentage of all the equity issued, including preferred stock, warrants, and so on. and equity interest, that they were willing to entertain offers to sell the shares they own or control. The Company has hired Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Corporation as investment adviser for this process which is expected to continue over the next few months. 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 continues to carry out a global diamond exploration program. 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 January 31, 2000 and the nine months ended October 31, 1999 are as follows:
CONSOLIDATED BALANCE SHEETS
(unaudited)
(000's)
--------------------------------------------------------------------
October 31, January 31,
2000 2000
--------------------------------------------------------------------
Restated
(note 1 c)
Assets
Current assets
Cash $ 4,797 $ 2,428
Temporary investments 6,354 15,486
Amounts receivable 791 618
--------------------------------------------------------------------
11,942 18,532
Capital assets 746 2,473
Investment in the Ekati(tm)
Diamond Mine (note 2) 302,145 279,827
--------------------------------------------------------------------
$ 314,833 $ 300,832
--------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 179 $ 868
Current portion of obligations for the
Ekati(tm) Diamond Mine 31,057 56,336
--------------------------------------------------------------------
31,236 57,204
Obligations for the Ekati(tm)
Diamond Mine (note 3) 102,731 148,435
Future income taxes payable 53,198 13,629
Shareholders' equity
Share capital (note 4) 93,236 79,435
Shares repurchased under normal
course issuer bid (8,543) (3,336)
Retained earnings 42,975 5,465
--------------------------------------------------------------------
127,668 81,564
--------------------------------------------------------------------
$ 314,833 $ 300,832
--------------------------------------------------------------------
CONSOLIDATED STATEMENTS EARNINGS AND RETAINED EARNINGS
(unaudited)
Nine months ended October 31, 2000 with comparative figures for 1999
($ 000's)
--------------------------------------------------------------------
2000 1999
--------------------------------------------------------------------
Restated
(note 1 c)
Revenue
Equity in earnings of the Ekati(tm)
Diamond Mine $ 88,149 $ 76,761
Aircraft operations 270 176
Gain on disposal of aircraft operations 176 -
Interest and other income 2,281 1,220
--------------------------------------------------------------------
90,876 78,157
Expenses
Interest on obligations for the Ekati(tm)
Diamond Mine 12,444 16,654
Amortization of capitalized interest and
direct expenditures on the Ekati(tm)
Diamond Mine 2,333 1,255
Exploration 4,943 7,475
General and administrative 2,878 2,473
Depreciation 160 139
Aircraft operations 118 82
--------------------------------------------------------------------
22,876 28,078
--------------------------------------------------------------------
Earnings before income taxes 68,000 50,079
Income taxes
Current 366 619
Future 30,124 23,065
--------------------------------------------------------------------
30,490 23,684
--------------------------------------------------------------------
Net earnings for the period 37,510 26,395
Retained earnings (deficit), beginning
of period as previously stated 20,229 (18,925)
Change in accounting policy (note 1 c)) (14,764) (17,521)
--------------------------------------------------------------------
As restated 5,465 (36,446)
Excess of cost of shares cancelled over
original average issue price - (8,345)
--------------------------------------------------------------------
Retained earnings (deficit) end of period $ 42,975 $ (18,396)
--------------------------------------------------------------------
Earnings per share, basic $ 1.22 $ 0.88
--------------------------------------------------------------------
Earnings per share, fully diluted $ 1.12 $ 0.80
--------------------------------------------------------------------
Weighted average number of common shares
outstanding 30,803,991 30,116,398
Fully diluted number of common shares
outstanding 33,552,470 32,974,074
--------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine months ended October 31, 2000 with comparative figures for 1999
($ 000's)
--------------------------------------------------------------------
2000 1999
--------------------------------------------------------------------
Restated
(note 1 c)
Cash provided by (used in)
Operations
Net earnings for the period $ 37,510 $ 26,395
Items not involving cash:
Gain on disposal of aircraft operations (176) -
Depreciation and amortization 2,493 1,394
Depreciation, depletion and amortization
included in equity in earnings of the
Ekati(tm) Diamond Mine 12,850 10,293
Future income taxes 30,124 23,065
Changes in non-cash operating working capital
Amounts receivable (173) 437
Accounts payable and accrued liabilities (343) (838)
Income taxes payable - (197)
Working capital of the Ekati(tm)
Diamond Mine 7,410 (13,687)
--------------------------------------------------------------------
89,695 46,862
Investing activities
Decrease in temporary investments 9,132 10,617
Investment in the Ekati(tm) Diamond Mine (22,998) (5,495)
Proceeds on disposal of aircraft operations 1,551 -
Purchase of capital assets (153) (151)
--------------------------------------------------------------------
(12,468) 4,971
Financing activities
Increase in obligations for the Ekati(tm)
Diamond Mine 11,720 17,548
Repayment of obligations for the Ekati(tm)
Diamond Mine (82,703) (69,016)
Shares issued for cash 1,332 3,773
Shares repurchased under normal course
issuer bids (5,207) (4,526)
--------------------------------------------------------------------
(74,858) (52,221)
--------------------------------------------------------------------
Increase (decrease) in cash 2,369 (388)
Cash, beginning of period 2,428 93
--------------------------------------------------------------------
Cash, end of period $ 4,797 $ (295)
--------------------------------------------------------------------
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. and the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. have neither approved nor disapproved the information contained in this release. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion