Business
WGI Heavy Minerals announces second quarter 2006 results
WGI Heavy Minerals announces second quarter 2006 results.
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\n\nCOEUR D'ALENE, ID, Aug. 10 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG)\ntoday announced results for the second quarter ended June 30, 2006.\nWGI Heavy Minerals is in the process of rebuilding its operations both\ndomestically and internationally. Changes are occurring across the\norganization; the political climate in India is evolving (see Chairman's\nLetter to Shareholders dated August 2006) and the Company is focussed on\nstrengthening its core businesses.\n\nResults of Operations - Comparison of First Half of 2006 with First Half\nof 2005\n\nRevenues for the six-month period ended June 30, 2006 increased\n12.5 percent to $10.67 million, compared with $9.49 million for same period in\n2005 due to higher prices, strong growth across the entire product line at the\nCompany's Kominex subsidiary and the addition of the IWP business for a full\nsix months in 2006 compared to 3.5 months in 2005.\nGross operating profit margins decreased to 9.7 percent in the first half\nof 2006, compared with 12.9 percent in the first half of 2005.\nGeneral and administrative expenses remain unchanged at 29.3 percent of\nnet sales in the first half of 2006, compared to 29.4 percent in the first\nhalf of 2005. The Company posted a $0.03 million foreign exchange gain in the\nfirst half of 2006 as a result of the strengthening Canadian dollar, as\ncompared to a $0.04 million foreign exchange loss in the first half of 2005.\nThe Company expensed development costs with respect to Andhra Pradesh in the\namount of $0.09 million in the first half of 2006 versus the restated\n$1.52 million write-down of Andhra Pradesh assets and $0.98 million in Indian\nadvances written off in the first half of 2005. The Company also booked\n$0.73 million of stock-based compensation in the first half of 2006 compared\nto $0.40 million in the first half of 2005.\nInterest income rose by 34.6 percent from $0.30 million for the first\nhalf of 2005 to $0.40 million in the first half of 2006 due to increasing\ninterest rates on short-term deposits.\nIncome tax expense for the first half was $0.98 million and is the result\nof profits generated by the Company's subsidiary, Kominex, located in Europe.\nAs a result, the Company posted a net loss of $2.83 million, or $0.12 per\nshare, for the first half of 2006, compared with a restated net loss of\n$4.31 million, or $0.18 ...