WGI Heavy Minerals Announces First Quarter 2008 Results

About this update from Nickel Creek Platinum Corp.

[{"type":"text","content":"\n\n\n\nCOEUR D'ALENE, ID, May 15 /CNW/ - WGI Heavy Minerals, Incorporated (TSX:\nWG) today announced results for the first quarter ended March 31, 2008. All\ndollar amounts are in United States dollars unless otherwise indicated.\nResults have been filed and may be viewed at www.sedar.com. A summary of key\nfinancial results for the three-month period is as follows:\n\n\nHighlights\n\n- Revenues increased 10% for the quarter to $6.9 million from $6.2\n million in the same period a year ago.\n- Gross margin decreased to 19.0% for the quarter from 27% in the same\n period last year.\n- The Company posted a net loss for the quarter of $0.68 million. This\n has decreased from the year ago period's net income of $0.02 million.\n- Utilized cash of $0.187 million, or $(0.008) per share, from\n operating activities.\n- At March 31, 2008 the Company had a cash position (including short\n term investments) of $16.2 million.\n\n\n"The Company continues to improve operations outside India and increase\nsales. We are making investments in our processes both in our Idaho mining\noperations and Washington manufacturing business. These investments currently\nplace pressure on our gross margins in anticipation of improved operating\nresults down the line. We are adding additional capacity at our recycling\nplant in Germany to further growth in the European abrasives markets. The\nCompany is evaluating a number of opportunities and anticipates presenting\nsome of those opportunities in the near future defining the potential to\nenhance the Company's value," said President and CEO, Greg Emerson.\n\n\nResults of Operations\n\n\nRevenues for the three-month period ended March 31, 2008 increased 10\npercent to $6.9 million, compared with $6.2 million for the same period in\n2007 due to higher prices in abrasive markets and strong growth in waterjet\nparts sales. Abrasives revenues were up 8% as growth in other abrasives (60%)\noffset a 4% decline in garnet revenue. Abrasives sales volumes dropped 17% but\nprices increased 33%, fueling the revenue growth. Waterjet parts revenue\njumped 24%, primarily due to continued growth in sales volume. Markets\nremained buoyant throughout the quarter. The Company's revenues come from the\nfollowing products: Garnet (58%), Waterjet Replacement Parts (19%), and Other\nAbrasives (23%).\n\n\nGross profit m...

More updates from Nickel Creek Platinum Corp.