10th Nov 2005 07:01
SouthernEra Diamonds 2005 Third Quarter Results (All amounts are in United States dollars unless otherwise noted) Shares Issued and Outstanding: 112,279,101 TSX: SDM AIM: SRE TORONTO, Nov. 9 /CNW/ - The Board of Directors of SouthernEra DiamondsInc. ("SouthernEra") (the "Company") (TSX: SDM, AIM: SRE) today reported onthe Company's 2005 third quarter results. The Company recorded a net loss from mining operations of $0.3 million inthe third quarter compared with a loss in the comparable quarter of 2004 of$0.9 million. Costs related to ongoing care and maintenance costs and chargesfor amortization of machinery and equipment. The Company is studying allalternatives with respect to the Klipspringer property including evaluatingalternative mining methods and optimal levels of production with the intentionof resuming mining operations in the near term or for the disposition of itsinterest in the property. Corporate, general and administration expenses of $2.6 million increasedfrom the comparable period in 2004 of $1.8 million reflecting a $0.8 millionfair value charge to earnings of options granted and vesting during thecurrent quarter and an additional $0.8 million charge for severance andrelated costs. A foreign exchange loss in the current quarter of $0.4 million reflectedthe net unrealized gains on Canadian currency denominated monetary assets andliabilities, and losses on South African Rand denominated working capital,relative to the US dollar, the Company's reporting currency. Both the SouthAfrican Rand, in which currency the Company's main monetary liabilities arestated, and the Canadian dollar strengthened slightly against the US dollar inthe quarter, resulting in the loss. A comparable loss in the third quarter of2004 resulted from similar currency fluctuations. In the third quarter, the Company incurred an after tax loss of$3.5 million versus a $2.2 million loss in the third quarter of 2004 fromcontinuing operations. Cash outflow from operating activities in the third quarter of 2005amounted to $1.2 million versus cash outflows of continued diamond operationsof $2.7 million in the third quarter of 2004 reflecting the loss fromcontinued operations and working capital movements in the two periods. In thecurrent and comparative quarters, the Company expended cash to fund care andmaintenance costs at the KJV, continued exploration and developmentactivities, and general and administration expenditures. Where the Company has determined that exploration and development resultsremain promising, the amounts expended on these projects are included on thebalance sheet. The September 30, 2005 balance approximated $35 million(December 31, 2004 - $29.9 million). Please refer to the Company's website (www.southernera.com) to view thefull financial results for the third quarter of 2005. For further information: SouthernEra Diamonds Inc., Mr. Chris Reynolds,Senior Vice President and CFO; or Ms. Sharon Allan, Investor Relations,Telephone: (416) 359-9282, Fax: (416) 359-9141, E-mail:inbox(at)southernera.com, www.southernera.com (SDM. SRE)ENDSOUTHERNERA DIAMONDS INCRelated Shares:
Sirius Real Estate