As diamond production continues to build, the company recorded a quarterly net income for the first time in its history. Net income for the company’s third quarter ended March 31, 2002, was $69,912, compared with a net loss of $1,125,550 for the same period in 2001.
Operating profit margins from Diamond Fields’ joint venture with Trans Hex Group continued to improve significantly due to low production costs and better mining efficiencies since the start of full-scale mining on Nov. 6, 2001. Results from the operations to March 31, 2002, were as follows:
At March 31, 2002, the company’s share of the joint venture’s diamond inventory was nearly 3,300 carats recorded at a cost of $444,000. These were sold in April and May for gross proceeds of approximately $800,000. Market prices for the company’s diamonds have continued to strengthen subsequent to March 31, 2002.
During the quarter ended March 31, 2002, the company incurred $56,965 in financing costs. The company plans to develop and mine its known diamond resource outside of the joint venture area and is currently in discussions with prospective lenders with respect to project financing for the purchase of its own dedicated mining vessel equipped with processing plant and mining equipment.
H.D. Lee, chief financial officer, stated, “With the combination of our low cost structure, low debt position, healthier diamond prices and our mining experience over the past 12 months, we are in an excellent position to improve substantially our operating profitability with our joint venture operations and with the operation of our own dedicated mining vessel.”
WARNING: The company relies upon litigation protection for “forward-looking” statements.
