Afri-Can Marine Minerals has released the financial results of the first quarter 2002.
Results of operations
For the first quarter ended Nov. 30, 2001, the corporation incurred a net loss of $223,123 (one cent per share) compared with a net loss of $120,327 (one cent per share) for the same period last year.
General operating expenses during the first quarter were $176,512 compared with $119,602 in 2000. The near total of the $56,910 increases in operating expenses for the quarter were caused by increases in the public relation and professional fee expenses that are attributed to the non-realized OFEX listing.
The events of Sept. 11, 2001, affected the valuation of emerging market currencies and as such the South African rand (ZAR) experienced a dramatic loss of value. As a result, the corporation incurred a foreign exchange loss of $56,163 during the period compared with a loss of $2,087 for the same period last year. The corporation generated $9,552 in interest income during the period compared with $1,362 for the same period last year.
Mining properties
In accordance with its goal to find and develop world-class marine diamond resources and to control the largest marine exploration licence area off the coast of Namibia, the corporation has invested over $156,623 to increase its interest in its portfolio of marine concessions in Namibia during the first quarter.
The mining properties are valued at $6,012,649 as of Nov. 30, 2001 ($5,856,026 as of Aug. 31, 2001). The corporation’s major assets are its 60-per-cent interest in the Namibian Gemstones EPL concessions joint venture (valued at $5,235,181 as of Nov. 30, 2001), its 40-per-cent interest in the Woduna Block J joint venture (valued at $528,068 as of Nov. 30, 2001), its 30-per-cent interest in the Together Quando Block B joint venture (valued at $161,668 as of Nov. 30, 2001) and its 30-per-cent interest in the Karas Block N joint venture (valued at $57,080 as of Nov. 30, 2001).
Exploration and development programs
Afri-Can invested $296,524 during the first quarter in exploration, development and maintenance expenses to increase its understanding of the geology of its marine concessions in Namibia. The major work accomplished during the quarter was the completion of the layout of its reconnaissance-sampling program on the Block J licence areas and the signature of an agreement with De Beers Marine (Pty.) Ltd. to conduct a reconnaissance-sampling program on Block J.
Exploration, development and maintenance funds were invested as follows: $60,376 on the Namibian Gemstones joint venture for a total exploration and development investment and carrying value of $2,534,084 as of Nov. 30, 2001; $186,124 on the Woduna Block J joint venture for a total exploration and development investment and carrying value of $812,627 as of Nov. 30, 2001; $34,295 on the Together Quando Block B joint venture for a total exploration and development investment and carrying value of $395,422 as of Nov. 30, 2001; and $15,729 on the maintenance cost related to Afri-Can’s other Namibian joint ventures giving these ventures a carrying value of $143,657 as of Nov. 30, 2001.
Financing and capital position
Afri-Can’s common shares increased from 55,422,992 (valued at $23,941,861) at the beginning of the period to 57,026,782 (valued at $24,407,084), representing $465,223 of net equity financing. During the first quarter, the corporation completed private placements resulting in the issuance of 135,435 common shares in exchange for $31,150 in cash, issued 662,640 shares to increase the corporation’s property holdings and issued 805,715 common shares in exchange of a $282,000 convertible promissory note. As of Nov. 30, 2001, the corporation had $215,280 in its treasury.
Other corporate development
The corporation has completed a broad review of the OFEX London’s market possibility and has concluded and decided to not seek a listing on this market.
