Namibian Minerals Corporation (Namco) today reported a loss for the first quarter ended March 31, 2002.
All figures are in U.S. currency.
The loss for the quarter was $7.95-million, eight cents per share (2001: $12,213,000, 26 cents per share). Revenues of $6,378,000 were earned through the sale of 43,286 carats, compared with revenue of $4,728,000 from diamond sales of 23,865 carats for the same period in 2001. Operating cash outflow for the quarter was $4,324,000, compared with $8,844,000 for the same period in 2001. At the end of the quarter, the company had $1,231,000 in cash, with diamond stocks of 17,514 carats, compared with $2.56-million and no diamond stocks at March 31, 2001.
Two of the company’s mining production vessels, the MV Ya Toivo and MV Namibian Gem, operated during the quarter and produced 33,510 and 8,471 carats, respectively. Namco experienced operational difficulties that impacted diamond production during the quarter and is implementing measures to improve its operational capability. Repairs to the NamSSol I mining tool progressed during the quarter and were completed ahead of schedule in May. The MV Kovambo left Cape Town in mid-May to conduct commissioning trials off the Namibian coast. The Kovambo is expected to re-enter production in early June.
Namco is planning business development initiatives and will require additional financing for these initiatives and its continuing operations. The company is currently negotiating in order to address its capital requirements and will announce the outcome of these negotiations at their conclusion. Namco’s chairman, Arye Barboy, said he believed that the initiatives under consideration would increase the company’s production potential, reduce costs and provide the basis for the rebuilding of Namco as a stable and successful enterprise.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
Three months ended March 31
(thousands of U.S. dollars)
2001 2000
Income
Revenue from
diamond sales 6,378 4,728
Interest earned 19 22
Gain on
marketable
securities – 7
—— ——
6,397 4,757
—— ——
Expenses
Direct
production
costs 8,005 9,441
Royalty payment 523 329
Marketing costs 201 227
General office
costs,
including
salaries 1,361 901
Amortization
— capital assets 2,235 3,220
— deferred costs 476 128
Interest
— long-term debt 1,042 1,276
— other 727 65
Corporate
finance fee – 280
Gain on disposal
of capital
assets (1) –
—— ——
14,522 15,867
—— ——
Unusual items
Provisional
liquidation costs – 700
—— ——
(Loss) for the
year before
income taxes
and good will (8,172) (11,810)
Recovery of
income taxes 220 200
—— ——
(Loss) for the
year before
good will (7,952) (11,610)
Good will
amortization – (603)
—— ——
(Loss) for the
period (7,952) (12,213)
(Deficit)
retained earnings
at beginning
of period (57,775) 5,098
Cancellation of
warrants 399 –
Adjustment to
conversion
privileges (70) –
—— ——
Retained deficit
— end of period (65,398) (7,115)
—— ——
Basic (loss)
earnings per
share for the
period before
good will n/a (0.24)
Basic (loss)
earnings per
share for the
period after
good will (0.08) (0.26)
Fully diluted
(loss) earnings
per share for
the period (0.08) (0.26)
