25th Jul 2005 07:00
Dwyka Diamonds Limited25 July 2005 Dwyka Diamonds Limited 4th Quarter Report HIGHLIGHTS • Dwyka (with black empowerment partner Kolong Investments) signs agreement with De Beers to retreat diamond tailings from Kimberley mines. Construction of plant has commenced and is on schedule for first production in December 2005 • Nooitgedacht Alluvial Mine producing an average grade of 1 cpht* • Final Sales Agreements for the purchase of Blaauwbosch, Newlands and New Elands Diamond Mines signed • Appointment of Cedric Bredenkamp as Managing Director and Melissa Sturgess as Executive Chairman • Group cash at the end of the quarter of approximately A$9.8 million * carat per hundred tonnes SOUTH AFRICAN OPERATIONS De Beers Diamond Tailings Retreatment Project On the 31st May 2005 the Company, and its black empowerment partner Kolong Investments, announced an agreement with De Beers Consolidated Mines ("De Beers") to retreat diamond tailings from its Kimberley mines in South Africa. Under the agreement De Beers have agreed to supply agreed monthly tonnages for processing at contracted diamond feed grades and set diamond prices. Once the plant is commissioned, 50,000 tonnes per month of tailings will be processed. The agreement is significant for Dwyka as it will create early and sustainableprofits, leveraging off Dwyka's expertise in the design and construction ofefficient and effective diamond processing plants. Plant design and construction at the end of the June 2005 quarter was welladvanced. Site grading and levelling has been completed and the import of filland compacting on site has commenced. Equipment sizing and selection activitiesare expected to be completed in the coming weeks, with drainage of the siteplanned to commence early in the September 2005 quarter. First production is onschedule for December 2005. Dwyka will hold its 40 per cent equity in the project through its wholly ownedsubsidiary company, Supermix (Pty) Ltd and operate under the entity Superkolong(Pty) Ltd. The capital cost of the project is R20 million with projectdevelopment currently being funded by Dwyka. Once operations have commenced asignificant portion of the capital costs are expected to be refinanced through aSouth African Rands bank loan. Nooitgedacht Alluvial Mine Following the restructuring and optimisation programme completed at the projectin February 2004, Dwyka is now seeing significant benefits from production interms of grade and recovery of stones. The Nooitgedacht plant has operated effectively throughout the quarter with therecovery of large, single stones of grades including 4.66, 4.98, 6.51, 9.32,10.30 carats. During the quarter 25,493 tonnes of gravel were treated recovering 242.50 caratsat an average grade of 0.95 cpht. Nooitgedacht has now concluded two years of cash positive operations. Purchase of New Mines During the quarter final Sales Agreements for the acquisition of Blaauwbosch,Newlands and New Elands were signed. Share transfers will be completed in thecoming week and final Exchange Control Approval is expected to be granted by theSouth African authorities by the end of August. The final sales agreement forWest End is being adjusted to accommodate BEE mining permit requirements. It isexpected that this process will be completed during Q3 of 2005, at which timethe mine will be prepared for re-opening. Blaauwbosch Mine Production at the Blaauwbosch Mine was halted during the Quarter to undertakeplant redesign and shaft deepening. Significant progress has been made with the main shaft at Blaauwbosch now sunkto a depth of 160 metres. The final shaft depth will be approximately 200 metresto allow for greater penetration of the resource. Production start-up is on target for September 2005 with the immediateprocessing of tailings through a significantly improved extraction facility. Underground ore will be treated from January 2006. Newlands Mine Modifications to the Newlands plant are also at an advanced stage with all majorcomponents already on site. The plant will be re-commissioned during August. Production will recommence with the processing of both tailings and undergroundore from September 2005. West End Mine The final sales agreement for West End is being adjusted to accommodate BEEmining permit requirements. It is expected that this process will be completedduring Q3 of 2005, at which time the mine will be prepared for re-opening. New Elands Mine Once Blaauwbosch, Newlands and West End are in full operation, the New ElandsMine will be reopened. Industrial Division The Industrial division continues to perform to expectations with combinedconcrete and brick sales for the June 2005 quarter being R5,791,920 compared toR4,177,990 in the March 2005 quarter. Bosele (Dwyka 70 per cent) During the June 2005 quarter seven percussion drill holes were drilled in thesouthern part of the project area, totalling 400 metres. Six of the drill holesintersected volcanoclastic rocks whilst the seventh hole was stopped inoverlying mudstones. Volcanoclastic rocks have now been located in three different areas,approximately 1 km apart. It is appears that the three areas are part of thesame body although they represent different geological environments. Furthermaterial recovered from the drilling will be submitted for kimberlitic indicatormineral studies. During the next quarter a bulk sample will be extracted and processed throughthe Newlands Plant to evaluate grade. In addition, discussions are underway with major mining houses to explore jointventure possibilities for the property. INDIAN DIAMOND EXPLORATION PROGRAMME Limited sampling was carried out within the BHP Billiton / Dwyka DiamondsLimited Indian Alliance area due to the early onset of the Indian monsoonseason. Results from sampling during the previous quarter have been assessed,with recently granted tenements in Karnataka and Madhya Pradesh shown to havesome potential to host kimberlitic bodies. Follow-up sampling of areas withinboth states is planned to commence during August 2005. New tenements continue to be granted, with a further four granted in UttarPradesh (3509 km(2)), and four new, prospective tenements recommended for grantby the Central Government in Orissa (7,200 km(2) available). Sampling programshave been designed for these tenements and previously executed tenements inOrissa (2,728 km(2)) to commence during August 2005. Nigel Chapman has been appointed as consultant geologist to continue Dwyka'songoing exploration programme in India. Nigel has a proven record of kimberliteand lamproite discoveries and will focus full time on increasing Dwyka'scommitment to India. CORPORATE Significant changes were made to the Dwyka board during the quarter includingthe appointment of Mr Michael Langoulant as Chief Financial Officer. MrLangoulant previously held the position of Company Secretary of the company. Dr Evan Kirby, previously Technical Director of the company, stepped up to theposition of Chief Operations Officer and Mr Cedric Bredenkamp was appointed asManaging Director. Mr Bredenkamp previously held the position as General Managerto the South African Operations. Further to the above changes Ms MelissaSturgess, previously CEO, has assumed the role of Executive Chairman and Mr EdNealon Non-Executive Director. The Dwyka board now comprises of the following: Ms Melissa Sturgess Executive ChairmanMr Cedric Bredenkamp Managing DirectorDr Evan Kirby Chief Operations OfficerMr Mike Langoulant Chief Financial OfficerMr Ed Nealon Non-Executive Director MELISSA STURGESSExecutive Chairman The technical exploration and mining information contained in this report wascompiled by Ed Nealon, a Dwyka Diamonds Ltd director, and Mrs Catherine Telfer,a director and employee of Venmyn Rand (Pty) Ltd. Mr Nealon provides consultingservices via his company Athlone International Pty Ltd while Venmyn Rand (Pty)Ltd are consultants to Dwyka Diamonds in South Africa. Both Mr Nealon and MrsTelfer are members of the Australasian Institute of Mining and Metallurgy andare each considered to be a Competent Person in their respective areas ofexpertise pursuant to the Australasian Code for Reporting of Mineral Resourcesand Ore Reserves. Further information please contact: In Australia: In United Kingdom:-------------------------- --------------------Mike Langoulant, Melissa Sturgess Laurence Read/ Leesa PetersDwyka Diamonds Limited Conduit PR (+618) 9324 2955 (+44) 20 7618 8707 / (+44) 7979 955 923 Mining exploration entity quarterly report Name of entityDWYKA DIAMONDS LIMITED ACN or ARBN Quarter ended ("current quarter")------------------- ------------------098 060 938 552 30 June 2005------------------- ------------------ Consolidated statement of cash flows ------------ ------------Cash flows related to operating Current quarter Year to dateactivities $A'000 12 months) $A'000 ------------ ------------ 1.1 Receipts from product sales and 1,984 6,460 related debtors 1.2 Payments for (a) exploration and (451) (3,027) evaluation (b) development (1,824) (1.824) (c) production (1,645) (5,644) (d) administration (529) (2,019) 1.3 Dividends received 1.4 Interest and other items of a 154 577 similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other FOREX variance (38) (43) ------------ ------------ Net Operating Cash Flows (2,349) (5,520) ----------------------- ------------ ------------ Cash flows related to investing activities 1.8 Payment for purchases of: (a) (450) (1,232) prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) 27 prospects (b)equity investments (c)other fixed assets1.10 Loans to other entities (250)1.11 Loans repaid by other entities 43 601.12 Other (provide details if material) ------------ ------------ Net investing cash flows (407) (1,395) ------------ ------------1.13 Total operating and investing cash (2,756) (6,915) flows (carried forward) ----------------------- ------------ ------------ 1.13 Total operating and investing cash flows (2,756) (6,915) (brought forward) ----------------------- ------------ ------------ Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc. 10,8561.15 Proceeds from sale of forfeited shares1.16 Proceeds from borrowings1.17 Repayment of borrowings (9) (18)1.18 Dividends paid1.19 Other - capital raising costs (543) ------------ ------------ Net financing cash flows (9) 10,295 ----------------------- ------------ ------------ Net increase (decrease) in cash held (2,765) 3,3801.20 Cash at beginning of quarter/year to date 12,697 6,6321.21 Exchange rate adjustments to item 1.20 (71) (151) ------------ ------------1.22 Cash at end of quarter 9,861 9,861 ----------------------- ------------ ------------ Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities ------------- Current quarter $A'000 -------------1.23 Aggregate amount of payments to the parties included in 182 item 1.2 -------------1.24 Aggregate amount of loans to the parties included in item - 1.10 -------------------------------------------------------------------------1.25 Explanation necessary for an understanding of the transactions ------------------------------------------------------------------------- - Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows -------------------------------------------------------------------------- - 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest -------------------------------------------------------------------------- - Financing facilities available Add notes as necessary for an understanding of the position. ------------- ------------- Amount available Amount used $A'000 $A'000 ------------- -------------3.1 Loan facilities Nil Nil ------------- -------------3.2 Credit standby arrangements Nil Nil ----------------------- ------------- ------------- Estimated cash outflows for next quarter $A'000 ------------------4.1 Exploration and evaluation 4004.2 Development 500 ----------------------------- ------------------ Total 900 ----------------------------- ------------------ Reconciliation of cash------------------------- ------------ -------------Reconciliation of cash at the end of the Current quarter Previous quarterquarter (as shown in the consolidated $A'000 $A'000statement of cash flows) to the relateditems in the accounts is as follows. ------------------------- ------------ -------------5.1 Cash on hand and at bank 1,941 2,5025.2 Deposits at call 7,920 10,1955.3 Bank overdraft5.4 Other (provide details) ---------------------- ------------ ------------- Total: cash at end of quarter (item 9,861 12,697 1.22) ---------------------- ------------ ------------- Changes in interests in mining tenements ----------- --------------- -------- -------- Tenement Nature of Interest at Interest reference interest beginning of at end of quarter quarter (note (2)) ----------- --------------- -------- --------6.1 Interests in mining tenements relinquished, reduced or lapsed ----------- --------------- -------- --------6.2 Interests in mining tenements acquired or increased ----------- --------------- -------- -------- Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total Number Issue price Amount paid number quoted per security up per (see security note 3) (see note 3) ----------- ---------- ---------- ---------- ----------- 7.1 Preference +securities (description) - - ----------- ---------- ---------- ---------- ----------- 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions ----------- ---------- ---------- ---------- ----------- 7.3 +Ordinary 80,440,196 77,706,862 N/A N/A securities ---------- ---------- ---------- ----------- 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs ----------- ---------- ---------- ---------- ----------- 7.5 +Convertible debt - - securities (description) ---------- ---------- ---------- ----------- 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted ----------- ---------- ---------- ---------- ----------- 7.7 Options 2,000,000 - Exercise price Expiry date (description and conversion factor) 1,100,000 - $1.47 30/6/2006 $0.52 30/6/2007 ---------- ---------- ---------- ----------- 7.8 Issued during quarter ---------- ---------- ---------- ----------- 7.9 Exercised during quarter ---------- ---------- ---------- -----------7.10 Expired (cancelled) during quarter ----------- ---------- ---------- ---------- -----------7.11 Debentures - - (totals only) ----------- ---------- ----------7.12 Unsecured notes - - (totals only) ---------- ---------- Notes 1 This quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect ofinterests in mining tenements acquired, exercised or lapsed during the reportingperiod. If the entity is involved in a joint venture agreement and there areconditions precedent which will change its percentage interest in a miningtenement, it should disclose the change of percentage interest and conditionsprecedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is notrequired in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Nyota Minerals