WGI Heavy Minerals Announces First Half 2009 Results and the Extension of Indian Garnet Supply Agreement

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[{"type":"text","content":"\n\n\n\nCOEUR D'ALENE, ID, Aug. 11 /CNW/ - WGI Heavy Minerals, Incorporated\n("WGI") (TSX: WG) today announced results for the quarter and six months ended\nJune 30, 2009. All dollar amounts are in U.S. dollars unless otherwise\nindicated. Results have been filed and may be viewed at www.sedar.com.\n\n\nWGI is pleased to report net income for the second quarter of $0.28\nmillion, EPS $0.01 and half year results of $0.14 million, EPS $0.01. In\naddition, WGI has signed an extension to its supply agreement with Transworld\nGarnet India Pvt. Limited ("TGI") effective August 2009. "We are pleased with\nthe confidence that TGI has placed in WGI's marketing and sales team by\nextending our partnership to December 31, 2016," said Greg Emerson, President\nand CEO.\n\n\nQ2 and First Half 2009 Highlights\n\n- Revenues in the second quarter were $7.02 million, up 15% over first\n quarter 2009 revenues of $6.1 million and up 3% over 2008's second\n quarter results of $6.82 million. Revenues for the first half were\n $13.09 million down 4% from the same period in 2008.\n- Gross margins improved 6 points from 22% in the first quarter of 2009\n to 28% in the second quarter of 2009. Gross margin improved 6 points\n to 28% over 2008's second quarter. Similarly, gross margins improved\n 6 points to 26% for the first half of 2009.\n- General and administrative expenses for the quarter were held to\n $1.58 million compared to the same period year over year of $2.08\n million, a reduction of 24%. General and administrative expenses for\n the first half were $2.96 million and were reduced from the first\n half of 2008 by 20%.\n- Net income for the quarter was $0.28 million, EPS $0.01 compared to a\n net loss of $0.72 million in the second quarter of 2008, EPS $(0.03).\n Net income for the first six months of 2009 was $0.14 million, EPS\n $0.01 compared to a net loss of $1.4 million for the same period in\n 2008, EPS $(0.06).\n- Cash and cash equivalents decreased for the quarter by $0.68 million\n primarily due to working capital increasing by $0.8 million, capital\n expenditures of $0.22 million and the repayment of debt of $0.15\n million all offset by a positive result from operations of $0.43\n million.\n\n\nOverview\n\n\n"Despite the poor economic conditions WGI's operations have returned\npositive results for ...

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