Income for the six months ended November 30 1997 was
US$863,000 (1996: US$449,000). Loss for the six month period was US$2,045,000 (1996: US$1,321,000 and the loss per share was US$0.05 (1996: $0.04).
Resource property costs for the period were US$3,645,000 (1996: US$2,955,000). At the end of the period total cash and short term investments were US$7,309,000 (1996: US$14,154,000).
The company focused on the final stages of commissioning its mining
operation during the quarter. Sea trials and testing of the NamSSol mining system were successfully completed in the North Sea and the company’s mining vessel MV Kovambo departed the UK on December 12
1997 for Namibia. Commercial mining will commence in January 1998.
The capital cost of the project was US$18 million. Construction of the
NamSSol and supporting infrastructure was managed by the company’s
internal project team, SubSea Offshore and Dosco Overseas Engineering.
The company’s research and development team received detailed design
proposals on marine exploration methods. A decision on the optimum
method is expected in the next quarter.
In October 1997 exploration commenced in two of the company’s Angolan
concessions by river dredging and diver operations. In the company’s group O concession in Lunde Norte province, divers have recovered a total of 488 diamonds weighing 181.97 carats. The average stone size is 0.37 carats and the largest stone recovered weighed 3.7 carats. Review and assessment of the results is current.
A corporate office has been established and opened in Luanda.
Subsequent to quarter end the company concluded the private placement of
US$5,000,000 of 6% exchangeable subordinated debentures to a group of
European investors. The maturity date of the debentures is December 4
1999. The debentures are exchangeable into common shares of the
company at an exchange price of US$3.75 in year one and at an exchange
price of US$4.50 in year two.
