Dia Met Minerals Announces Six-Month Results From Ekati Diamond Mine, Net Earnings More Than Double Compared To Prior-Year Period.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)--Sept. 27, 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.B.) today announced net earnings of $21.1 million or $0.69 per basic share for the six months ended [pilcrow (paragraph sign)] July July: see month. 31, 2000, compared to net earnings of $10.1 million or $0.33 per basic share for the comparable period of 1999. Dia Met's equity in earnings from its 29 per cent-owned Ekati Ekati may refer to:
In total, Ekati(TM) produced 1,351,000 carats of diamonds for the six months ended July 31, 2000, and sold 1,170,000 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 year-earlier period totalled 1,332,000 carats, with sales of 936,000 carats at an average price of US$163 per carat. There were five sales of rough diamonds during both six-month periods, including three sales during the first quarter ended April 30, and two sales during the second quarter ended July 31. Dia Met's share of diamond sales from Ekati(TM) for the latest six-month period totalled $85.2 million, from which $24.1 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 $7.5 million for amortization and depreciation, yielding equity in earnings of $53.6 million. Dia Met's outstanding net debt obligations for Ekati(TM) totalled $166.7 million at July 31, 2000, down from $204.7 million at January January: see month. 31, 2000. This reflects the net impact of $46.3 million of debt repayments for the period, offset by $8.3 million of interest charges and other costs. Dia Met continued to apply 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 Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of its debt obligations until August, 2000. Since then, the company has applied 90 per cent of its share of after-tax cash flows to debt repayment, and 10 per cent to fund corporate activities. As of the first quarter of the current fiscal year, Dia Met changed its method of accounting for exploration costs. Previously, exploration costs were capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and reported on the balance sheet as an asset. Costs were expensed only if the related exploration project was abandoned or went into production. Under Dia Met's new accounting policy, exploration costs are expensed as they are incurred, resulting in an immediate impact on net earnings and earnings per share. This change, which has been applied retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin , is intended to bring Dia Met in line with accounting practices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and with the more conservative accounting practices of most medium and large Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. resource companies. The effect of this new accounting policy on Dia Met's net earnings for the six months ended July 31, 2000, is a reduction in after-tax earnings of $2.30 million or $0.08 per share. 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 October: see month. 1998. In addition to the investment in the Ekati(TM) Diamond Mine, Dia Met continues to carry out a global diamond exploration program. SIGNED ON BEHALF OF THE BOARD OF DIRECTORS 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. R. Rothwell Rothwell is the name of several places in the United Kingdom:
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 six months ended July 31, 1999 are as follows:
CONSOLIDATED BALANCE SHEETS
(unaudited)
(000's)
July 31, January 31,
2000 2000
Assets
Current assets
Cash $ 392 $ 2,428
Temporary investments 8,768 15,486
Amounts receivable 739 618
-----------------------
9,899 18,532
Capital assets 2,398 2,473
Investment in the Ekati(TM) Diamond Mine 307,642 279,827
-----------------------
$ 319,939 $ 300,832
-----------------------
Liabilities and Shareholders' Equity
Current liabilities
Loan payable $ 249 $ -
Accounts payable and accrued liabilities 822 868
Current portion of obligations for the
Ekati(TM) Diamond Mine 47,105 56,336
-----------------------
48,176 57,204
Obligations for the Ekati(TM) Diamond Mine 119,605 148,435
Future income taxes payable 40,841 13,629
Shareholders' equity
Share capital 92,397 79,435
Shares repurchased under normal course
issuer bid (7,603) (3,336)
Retained earnings 26,523 5,465
-----------------------
111,317 81,564
-----------------------
$ 319,939 $ 300,832
-----------------------
CONSOLIDATED STATEMENTS EARNINGS AND RETAINED EARNINGS
(unaudited) Six months ended July 31, 2000 with comparative figures
for 1999
($ 000's)
2000 1999
Revenue
Equity in earnings of the Ekati(TM)
Diamond Mine $ 53,571 $ 39,390
Aircraft operations 195 94
Interest and other income 1,664 655
-----------------------
55,430 40,139
Expenses
Interest on obligations for the Ekati(TM)
Diamond Mine 8,564 11,260
Amortization of capitalized interest and
direct expenditures on the Ekati(TM)
Diamond Mine 1,549 836
Exploration 4,195 6,408
General and administrative 1,705 1,793
Depreciation 110 91
Aircraft operations 86 47
-----------------------
16,209 20,435
-----------------------
Earnings before income taxes 39,221 19,704
Income taxes
Current 395 441
Future 17,768 9,090
-----------------------
18,163 9,531
-----------------------
Net earnings for the period 21,058 10,173
Retained earnings (deficit), beginning of
period as previously stated 20,229 (18,925)
Change in accounting policy (14,764) (17,521)
-----------------------
As restated 5,465 (36,446)
-----------------------
Retained earnings (deficit) end of period $ 26,523 $ (26,273)
-----------------------
Earnings per share, basic $ 0.69 $ 0.33
-----------------------
Earnings per share, fully diluted $ 0.63 $ 0.31
-----------------------
Weighted average number of common
shares outstanding 30,733,442 30,426,066
Fully diluted number of shares
outstanding 33,561,470 33,255,947
-----------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six months ended July 31, 2000 with comparative figures for 1999
($ 000's)
2000 1999
Cash provided by (used in)
Operations
Net earnings for the period $ 21,058 $ 10,173
Items not involving cash:
Depreciation and amortization 1,659 927
Future income taxes 17,768 9,090
Undistributed earnings of the Ekati(TM)
Diamond Mine (7,295) (5,066)
Changes in non-cash operating working capital
Amounts receivable (121) 483
Accounts payable and accrued liabilities (46) 605
Income taxes payable - (197)
-----------------------
33,023 16,015
Investing activities
Decrease in temporary investments 6,718 8,715
Investment in the Ekati(TM) Diamond Mine (156) (1,029)
Purchase of capital assets (35) (94)
-----------------------
6,527 7,592
Financing activities
Increase in obligations for the Ekati(TM)
Diamond Mine 8,215 12,265
Repayment of obligations for the Ekati(TM)
Diamond Mine (46,276) (34,324)
Shares issued for cash 493 2,875
Shares repurchased under normal course
issuer bids (4,267) (3,199)
-----------------------
(41,835) (22,383)
-----------------------
(Decrease) increase in cash (2,285) 1,224
Cash, beginning of period 2,428 93
-----------------------
Cash, end of period $ 143 $ 1,317
-----------------------
Cash is defined as
Cash $ 392 $ 1,317
Loan payable (249) -
-----------------------
$ 143 $ 1,317
-----------------------
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. |
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