Diamond Fields International Ltd. has released results for the period ended March 31, 2005. (All figures are in U.S. dollars.)
Nine-month earnings
All revenue for the nine months ended March 31, 2005, resulted from the sale of diamonds held in inventory or recovered during operations. A total of 26,250 carats were sold at an average price of approximately $205 per carat generating revenue of $5,391,621. Comparatively, the company sold 8,872 carats in the same period during 2004 at an average price of $146 per carat generating revenue of $1,294,182. Production, royalty and selling expenses associated with the sale of inventory totalled $2,490,067; whereas, these operating costs for the same period in 2004 were $881,218. The company generated an operating margin of $2,901,554 for the nine months ended March 31, 2005, compared with $412,964 for the same period in 2004.
Net loss for the nine months ended March 31, 2005, was $994,631, or one cent per share, compared with a net loss of $2,054,378, or three cents per share in 2004. The change was primarily due to the company’s joint operations with Samicor during the current period.
Third quarter earnings
As production on the company’s marine concessions has been suspended as of October, 2004, there were no diamond sales during the three months ended March 31, 2005. Consequently, quarterly net loss of $1,356,803, or two cents per share, is primarily general and administrative expenses and the provision for impairment of exploration properties.
CONSOLIDATED STATEMENT OF
LOSS AND DEFICIT
Three months ended March 31
(All amounts expressed in U.S. dollars)
2005 2004
Diamond sales – $504,252
———- ———-
Operating costs
Production costs
(including
depletion) – 325,449
Royalties,
selling and
marketing – 55,230
———- ———-
- 380,679
———- ———-
- 123,573
General and
administrative
expenses
Accounting
and audit 15,823 7,714
Consulting 43,231 38,661
Depreciation 4,419 6,485
Interest on
note payable 151,164 34,049
Investor
relations 22,948 23,918
Legal 41,840 67,434
Maintenance 4,465 11,166
Office 89,831 67,943
Regulatory 21,709 18,595
Salaries and
benefits 287,455 226,011
Stock-based
compensation 76,946 343,105
Travel and
accommodation 43,395 40,626
———- ———-
803,226 885,707
Other income
(expense)
Interest and
other income (108,382) 5,943
Provision for
impairment of
exploration
properties (377,766) –
Financing
cancellation fee (150,000) (150,000)
Foreign exchange
gain (loss) (67,429) (78,887)
———- ———-
(553,577) (222,944)
Loss before
income taxes 1,356,803 985,078
Future income
tax recovery – –
Loss for the
period 1,356,803 985,078
Deficit,
beginning
of period 17,704,286 15,517,157
Deficit,
end of period 19,061,089 16,502,235
Basic and
diluted loss
per share $0.02 $0.01
CONSOLIDATED STATEMENT OF
LOSS AND DEFICIT
Nine months ended March 31
(All amounts expressed in U.S. dollars)
2005 2004
Diamond sales $5,391,621 $1,294,182
———- ———-
Operating costs
Production costs
(including
depletion) 1,948,860 734,358
Royalties,
selling and
marketing 541,206 146,860
———- ———-
2,490,067 881,218
———- ———-
2,901,554 412,964
General and
administrative
expenses
Accounting
and audit 73,814 33,151
Consulting 152,576 85,926
Depreciation 14,011 19,456
Interest on
note payable 467,024 223,944
Investor
relations 100,946 114,902
Legal 114,912 104,906
Maintenance 24,612 39,834
Office 259,725 170,650
Regulatory 51,920 48,685
Salaries and
benefits 857,254 629,800
Stock-based
compensation 278,951 818,784
Travel and
accommodation 167,107 143,111
———- ———-
2,562,852 2,433,149
Other income
(expense)
Interest and
other income (175,581) 11,759
Provision for
impairment of
exploration
properties (1,174,557) –
Financing
cancellation fee – (150,000)
Foreign exchange
gain (loss) (1,963) 91,551
———- ———-
(1,352,101) (46,690)
Loss before
income taxes 1,013,399 2,066,875
Future income
tax recovery 18,768 12,497
Loss for the
period 994,631 2,054,378
Deficit,
beginning
of period 18,066,458 14,447,857
Deficit,
end of period 19,061,089 16,502,235
Basic and
diluted loss
per share $0.01 $0.03
