GobiMin Posts Strong Third Quarter Operating Results.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. , British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- GobiMin Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:GMN GMN Grant Managers Network GMN GM Nameplate, Inc. GMN Grandmarq.net (website) GMN Global Maintenance Network GMN Gaussian Mixture Noise GMN Global Metro Network GMN Global Music Network ) ("GobiMin") is pleased to announce unaudited third quarter results for the period ended September September: see month. 30, 2005. (Note: all amounts in U.S. dollars. Previous year's quarterly comparative figures are not available.) Revenues in the third quarter rose 13% to $4.46 million compared with $3.95 million in the second quarter and $1.48 million in the first quarter. Revenues are derived primarily from the sale of nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. concentrate. In the third quarter, 418 tonnes of nickel content was sold at an average price of $9,961 per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. , based on a program determined by a formula with the Company's principal customer, Jinchuan Group. This compared with 369 tonnes of nickel content at an average price of $10,054 in the previous quarter. These results were achieved despite overall ore mined and processed being expectedly impacted by ongoing mine development during the quarter. Revenues for the nine months were $9.89 million.
($'000's except per share data) 3 Months ended 9 months ended
Sept 30, 2005 Sept 30, 2005
(Unaudited) (Unaudited)
Revenue $4,461 $9,893
Gross Profit 3,080 6,631
Net Operating Cash Flow 3,118 6,464
EBITDA(1) 2,364 5,433
Net Earnings 1,760 3,710
Earnings per share 0.04 0.08
(1) EBITDA is defined as earnings before interest, taxes, write-off
of construction cost, depreciation and amortization and is a
non-GAAP measure. The data is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP.
Gross profit in the quarter climbed 21% to $3.08 million (69% profit margin) over the previous quarter primarily due to increased sales activity. Net earnings for the quarter were $1.76 million ($0.04 per share) compared with $1.68 million ($0.03 per share) in the previous quarter, despite the increase in expenses associated largely with a one-time charge for professional fees and expenses incurred as a result of the reverse takeover A reverse takeover occurs when a publicly-traded smaller company acquires ownership of a larger company. It typically requires reorganization of capitalization of the acquiring company. transaction completed at the end of September. Net earnings for the nine months were $3.71 million or $0.08 per share. Net operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the third quarter was $3.12 million bringing the Company's cash and cash equivalents to $8.17 million and working capital to $3.33 million, after the effect of the reverse takeover transaction and a dividend paid to then shareholders of the acquired company. Debt arising from the transaction is in the form of a promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. for $2.29 million repayable in one year to Simsen, one of the shareholders of the acquired company, while proceeds from the private placement and internally generated funds are more than adequate to meet this commitment. As at September 30, 2005 the Company has approximately 51 million shares issued and outstanding. The complete financial statements and MD&A are available under the Company's profile on www.Sedar.com. GobiMin Inc., through its subsidiaries, is the largest nickel producer in the Hami region located in northwest China. The shares of GobiMin commenced trading on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. on October 12, 2005 under the symbol GMN. This press release contains certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of base metals, risks associated with mining operations, including environmental risks and hazards and other risks. The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. GobiMin Inc. (TSX VENTURE:GMN) |
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