Business
WGI Heavy Minerals announces first quarter 2007 results
WGI Heavy Minerals announces first quarter 2007 results.
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\nCOEUR D'ALENE, ID, May 14 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG)\ntoday announced results for the first quarter ended March 31, 2007. All dollar\namounts are in United States dollars unless otherwise indicated.\n\n\nThe first quarter has been constructive. A summary of key financial\nresults for the three-month period is as follows:\n\nHighlights\n\n- Revenues increased 21% for the quarter to $6.2 million from\n $5.1 million in the same period a year ago.\n- Gross margin increased to 27.0% for the quarter from 6.6% in the same\n period last year.\n- The Company posted a net income for the quarter of $0.02 million.\n This has increased from the year ago period's net loss of\n $1.2 million.\n- Generated cash flow of $0.5 million, or $0.02 per share, from\n operating activities.\n- At March 31, 2007 the Company had a cash position (including short\n term investments) of $18.8 million.\n\n\n"The Company continues to improve operations and profitability in all\nfacets of our business: We continue to increase sales and improve margins. The\ncurrent WGI senior management team has now been together for eight months and\nis generating positive results as they systematically address the Company's\nneeded improvements. Our Indian management is improving operational\neffectiveness as well. There continues to be much work to be done and it will\ncontinue to take time, more time than we or our patient shareholders like. But\nuseful progress is being made and should enhance the Company's value." said\nChairman and CEO Covell Brown.\n\n\nResults of Operations\n\n\nRevenues for the three-month period ended March 31, 2007 increased 21\npercent to $6.2 million, compared with $5.1 million for same period in 2006\ndue to higher prices and strong growth across most product lines. Garnet grew\n13%, other abrasives grew 74%, and waterjet parts rose 22%. Garnet and other\nabrasives sales volumes increased 13% while increasing prices contributed\nanother 7% to performance. Markets remained buoyant throughout the quarter.\nThe Company's revenues come from the following products: Garnet (68%),\nWaterjet Replacement Parts (16%), and Other Abrasives (16%).\n\n\nGross profit margins increased to 27.0% in the first quarter compared\nwith 6.6% in the first quarter of 2006. The most significant improvement was\nmade in Garnet & Other Ab...