Diamond Fields International Ltd. is releasing its results for the period ended Dec. 31, 2005.
Net loss for the six months ended Dec. 31, 2005, was $2,894,106 or three cents per share, compared with net earnings of $362,172 or nil per share in 2004. All revenue for the six months ended Dec. 31, 2005, resulted from the sale of diamonds held in inventory or recovered during operations. A total of 7,846 carats were sold at an average price of approximately $183 per carat generating revenue of $1,431,911. Comparatively, the company sold 26,250 carats in the six months ended Dec. 31, 2004, at an average price of $205 per carat generating revenue of $5,391,621. Production, royalty and selling expenses associated with the sale of inventory totalled $2,324,888; whereas, these operating costs for the same period in 2004 were $2,490,067. 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 $892,977 for the quarter ended Dec. 31, 2005, compared with $2,901,554 for the quarter ended Dec. 31, 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 company incurred general and administrative expenses of $2,043,621 during the six months ended Dec. 31, 2005, compared with $1,759,626 during 2004. Included in these amounts are financing fees and interest, which have increased due to the ship acquisition loan with Quest Capital Corp. and the note payable. The Quest Capital loan was repaid in full in November, 2005, with funds raised from the company’s private placement closing, announced in Stockwatch on Nov. 7, 2005. Office expense increased as a result of the company’s expanded operations. Stock-based compensation decreased due to the graded vesting of the company’s stock option plan.
The complete report of the company’s unaudited financial statements and related notes for the second quarter period ended Dec. 31, 2005, together with management’s discussion and analysis, are available on Stockwatch SEDAR files and on the company’s website.
