12th Aug 2005 06:00
SouthernEra Diamonds 2005 Second Quarter Results Shares Issued and Outstanding: 102,066,601 TSX: SDM AIM: SRE (All amounts are in United States dollars unless otherwise noted) TORONTO, Aug. 11 /CNW/ - The Board of Directors of SouthernEra DiamondsInc. ("SouthernEra") (the "Company") (TSX: SDM, AIM: SRE) today reported onthe Company's 2005 second quarter results. The Company recorded a net loss from mining operations of $0.1 million inthe second quarter compared with a loss in the comparable quarter of 2004 of$0.3 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. Corporate, general and administration expenses of $1.5 million increasedfrom the comparable period in 2004 of $0.7 million reflecting the increasedcosts the Company incurs as a stand alone diamond company versus the sharedcosts of the platinum and diamond businesses. The increase is offset by thereceipt, in the current quarter, of $1 million from Southern Platinum Corp. onsettlement of change of control provision triggered by the purchase by LonminPlc of Southern Platinum Corp. The foreign exchange gain in the current quarter of $0.6 millioncomprises net unrealized gains on Canadian and South African currencydenominated monetary assets and liabilities and reflects the relative movementagainst the Company's reporting currency (the US dollar). The South AfricanRand, in which currency the Company's main monetary liabilities are stated,weakened slightly against the US dollar in the quarter, resulting in the gain. In the second quarter, the Company incurred an after tax loss of$0.3 million from continuing operations versus a $1.9 million loss in thesecond quarter of 2004. Cash outflow from operating activities in the second quarter of 2005amounted to $1.7 million versus cash inflows of continued diamond operationsof $7.5 million in the second quarter of 2004 reflecting working capitalmovements in the two periods. In the current and comparative quarters, theCompany expended cash to fund care and maintenance costs at the KJV, continuedexploration and development activities, and general and administrationexpenditures. At June 30, 2004, the Company held approximately $33 million of(December 31, 2004 - $29.9 million) exploration and development project valueon its balance sheet at June 30, 2004 where results remain promising. Projectsare situated in Canada, Gabon, the DRC, South Africa and Angola. Please refer to the Company's website (www.southernera.com) to view thefull financial results for the second 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 (SRE)ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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