Key points
- Luderitz Bay production increased 17 per cent from the previous quarter to 30,300 carats, with an average diamond size of 0.39 carats.
- Diamond sales of 29,300 carats generated $4.8-million, at an average price of $164 per carat, down 8 per cent from the previous quarter.
- The company posted a quarterly profit of $1.02-million, or three cents per share, versus a loss of $0.34-million in 1997.
- Cash and short-term investments were $2.82-million and diamond inventories stood at 23,400 carats at quarter end, with total recoveries of 56,000 carats in under five months toward a 150,000-carat annual mine plan.
For the quarter ended Aug. 31, 1998 the company increased production and sales and obtained the first profits from its marine diamond mining operation in Namibia.
As previously announced, production from the company’s Luderitz Bay grant
increased by 17 per cent from the previous quarter, reaching a total of 30,300 carats.
The average diamond size recovered was 0.39 carats.
During the period, diamond sales of 29,300 carats generated $4.8-million.
The average sales price was $164 per carat, declining 8 per cent from the previous
quarter. The decline in the average price per carat reflects the lower average
diamond size sold and general weakness in diamond prices. It is expected that
diamond prices will remain under pressure due to global economic factors.
The company’s profit for the quarter was $1.02-million (1997: loss of
$0.34-million) and the profit per share was three cents (loss of one cent per share).
At the end of the quarter, the company’s cash position including short-term
investments was $2.82-million (1997: $18.61-million). In addition, diamond
inventories were 23,400 carats (1997: nil). Total income which includes
revenue from diamond sales and interest received was $4.85-million (1997:
$0.45-million). Total expenditure during the period was $3.83-million (1997:
$0.78-million) which includes costs for the offshore operation, royalty
payments to the Namibian government, onshore support costs, amortization and
debenture interest.
As previously reported, during the period MV Kovambo spent 17 days in
Cape Town for maintenance and repairs. Costs associated with the port call are
subject to an insurance claim.
With total recoveries of 56,000 carats in less than five months, the
company is on target to achieving its mine plan of 150 000 carats per year.
This production is establishing Namco as the leading independent marine
diamond producer in Namibia and South Africa.
