Dia Met Minerals Announces Twelve-Month Results From Ekati Diamond Mine; Equity In Earnings Up More Than 17 Per Cent Over Previous 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)--March 20, 2001 Dia Met Minerals (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 that its share of earnings from its 29 per cent-ownership in the Ekati Ekati may refer to:
Dia Met's net earnings for the year were $49.7 million or $1.61 per basic share. This compares with net earnings for the previous fiscal year of $50.3 million or $1.65 per basic share, which reflected a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. future income tax benefit of $15.3 million or $0.50 per basic share. Ekati(TM) produced 2,629,000 carats of diamonds for the twelve months ended January 31, 2001, and sold 2,483,000 carats at an average price of US$172.52 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 previous year totalled 2,514,000 carats, with sales of 2,243,000 carats at an average price of US$167 per carat. There were ten sales of rough diamonds during both twelve-month periods. Three sales were held during the first quarter ended April 30, 2000, two sales during the second quarter ended July July: see month. 31, three sales during the third quarter ended October October: see month. 31, and two sales during the fourth quarter ended January 31, 2001. Dia Met's share of diamond sales from Ekati(TM) for the twelve-month period totalled $187.0 million, from which $53.9 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 $16.1 million for amortization and depreciation, yielding equity in earnings of $117.0 million. Dia Met's outstanding net debt obligations for Ekati(TM) totalled $123.5 million at January 31, 2001, down from $204.8 million at January 31, 2000. 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 engaged 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 ongoing. 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 ) for January 31, 2001 and compared with the twelve months ended January 31, 2000 are as follows:
CONSOLIDATED BALANCE SHEETS
(unaudited)
(000's)
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January 31, January 31,
2001 2000
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Restated
Assets
Current assets
Cash $ 76 $ 2,428
Temporary investments 13,807 15,486
Amounts receivable 367 618
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14,250 18,532
Capital assets 836 2,473
Investment in the Ekati(TM) Diamond Mine 313,763 279,827
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$ 328,849 $ 300,832
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 215 $ 868
Current portion of obligations for the
Ekati(TM) Diamond Mine 44,250 56,336
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44,465 57,204
Obligations for the Ekati(TM) Diamond Mine 79,212 148,435
Future income taxes payable 63,002 13,629
Shareholders' equity
Share capital 94,366 79,435
Shares repurchased under normal
course issuer bid - (3,336)
Retained earnings 47,804 5,465
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142,170 81,564
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$ 328,849 $ 300,832
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CONSOLIDATED STATEMENTS EARNINGS AND RETAINED EARNINGS
(unaudited)
Twelve months ended January 31, 2001 with comparative figures
for 2000
($ 000's)
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2001 2000
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Restated
Revenue
Equity in earnings of the Ekati(TM)
Diamond Mine $ 117,025 $ 99,754
Aircraft operations 270 247
Gain on disposal of aircraft operations 176 -
Interest and other income 2,579 2,047
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120,050 102,048
Expenses
Interest on obligations for the Ekati(TM)
Diamond Mine 15,640 21,145
Amortization of capitalized interest and
direct expenditures on the Ekati(TM)
Diamond Mine 3,116 1,673
Exploration 6,564 9,619
General and administrative 4,265 3,298
Write down of temporary investments - 1,112
Depreciation 195 190
Aircraft operations 118 112
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29,898 37,149
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Earnings before income taxes 90,152 64,899
Income taxes
Current 556 1,014
Future 39,927 13,629
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40,483 14,643
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Net earnings for the period 49,669 50,256
Retained earnings (deficit), beginning
of period as previously stated 20,229 (18,925)
Change in accounting policy (14,764) (17,521)
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As restated 5,465 (36,446)
Excess of cost of shares cancelled over
original average issue price (7,330) (8,345)
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Retained earnings end of period $ 47,804 $ 5,465
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Earnings per share, basic $ 1.61 $ 1.65
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Earnings per share, fully diluted $ 1.49 $ 1.52
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Weighted average number of common shares
outstanding 30,857,396 30,416,725
Fully diluted number of common
shares outstanding 33,240,490 33,071,970
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Consolidated Statements of Cash Flows
(unaudited)
Twelve months ended January 31, 2001 and 2000
($ 000's)
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2001 2000
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Restated
Cash provided by (used in)
Operations
Net earnings for the period $ 49,669 $ 50,256
Items not involving cash:
Gain on disposal of aircraft operations (176) -
Depreciation and amortization 3,311 1,863
Depreciation, depletion and amortization
included in equity in earnings of the
Ekati(TM) Diamond Mine 16,065 13,229
Future income taxes 39,927 13,629
Changes in non-cash operating working capital
Amounts receivable 251 928
Accounts payable and accrued liabilities (306) (516)
Income taxes payable - (197)
Working capital of the Ekati(TM) Diamond Mine (2,924) (14,555)
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105,817 64,637
Investing activities
Decrease in temporary investments 1,679 18,575
Investment in the Ekati(TM) Diamond Mine (28,280) (6,145)
Proceeds on disposal of aircraft operations 1,551 -
Purchase of capital assets (280) (170)
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(25,330) 12,260
Financing activities
Increase in obligations for the Ekati(TM)
Diamond Mine 14,903 22,402
Repayment of obligations for the Ekati(TM)
Diamond Mine (96,212) (93,870)
Shares issued for cash 3,676 4,351
Shares repurchased under normal
course issuer bids (5,206) (7,445)
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(82,839) (74,562)
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Increase (decrease) in cash (2,352) 2,335
Cash, beginning of period 2,428 93
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Cash, end of period $ 76 $ 2,428
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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