Key points
- Net loss for the quarter ended Sept. 30, 2005 was $1,141,526, or one cent per share, compared with net earnings of $811,898 in 2004.
- The company sold 3,727 carats at about $201 per carat for revenue of $750,141, down from 20,799 carats at $210 per carat generating $4,376,775 a year earlier.
- Diamond Fields repaid a $1.95-million loan from Quest Capital Corp. that had financed the purchase of the mv DF Discoverer, using proceeds from its private placement.
- Shareholders approved the private placement’s second tranche of 6.09 million units at the Nov. 16, 2005 AGM, bringing total proceeds from both tranches to $6,096,735.
DIAMOND FIELDS PROVIDES CORPORATE UPDATE
Diamond Fields International Ltd. held its annual general meeting on Wednesday, Nov. 16, 2005, and advises that all of management’s resolutions passed with substantial margins. Further to news in Stockwatch on Nov. 7, 2005, in addition to approving other matters, shareholders approved the second tranche of the private placement of a total of 30,483,676 units and the participation therein of the company’s largest shareholder, Jean-Raymond Boulle. Accordingly, a total of 6.09 million units representing the second tranche of the private placement that were held pending shareholder approval have now been released in respect of the private placement. The company raised total proceeds of $6,096,735 under both tranches of the private placement.
The company also announces that it has repaid a loan obtained from Quest Capital Corp. in the principal amount of $1.95-million. The loan, advanced in October, 2004, provided Diamond Fields with the financing to acquire its marine diamond mining vessel the mv DF Discoverer. Funds to repay the loan came from the first tranche of the private placement announced in Stockwatch on Nov. 7, 2005. All security taken in connection with the loan, including a ship’s mortgage over the mv DF Discoverer, will be discharged by the lender.
Diamond Fields also announces results for the first quarter period. Net loss for the three months ended Sept. 30, 2005, was $1,141,526 or one cent per share, compared with net earnings of $811,898 or one cent per share in 2004. A total of 3,727 carats were sold at an average price of approximately $201 per carat generating revenue of $750,141. Comparatively, the company sold 20,799 carats in the three months ended Sept. 30, 2004, at an average price of $210 per carat generating revenue of $4,376,775. Production, royalty and selling expenses associated with the sale of inventory totalled $849,528; whereas, these operating costs for the same period in 2004 were $1,921,057. The higher costs in 2004 resulted from higher production and the terms of the contract mining agreement with Samicor Mining (Pty.) Ltd.
The company generated an operating loss of $99,387 for the quarter ended Sept. 30, 2005, compared with $2,455,718 for the quarter ended Sept. 30, 2004. Factors contributing to the loss included downtime due to equipment failures on the mv DF Discoverer, along with weather delays, a port call for refuelling and the unpredictable grade of the resource. The complete reports of the company’s unaudited financial statements and related notes for the quarter period ended Sept. 30, 2005, together with management’s discussion and analysis of financial condition have been filed on SEDAR and on the company’s website.
Diamond Fields also announces the results of its third diamond sale of the year, which consisted of 1,965 carats sold at an average price of $158.87 (U.S.) per carat, for total proceeds of $312,181 (U.S.).
