Business
WGI Heavy Minerals Announces the Reopening of Emerald Creek Garnet Mine and 2008 Results
www.wgiheavyminerals.com (expressed in U.S. dollars unless otherwise stated) COEUR D'ALENE, ID, M...
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\nwww.wgiheavyminerals.com\n(expressed in U.S. dollars unless otherwise stated)\n\n\nCOEUR D'ALENE, ID, March 24 /CNW/ - WGI Heavy Minerals, Incorporated\n("WGI") (TSX: WG) today announced that on March 31, 2009 Emerald Creek Garnet\n("ECG") will resume normal operations in areas where the anticipated grade of\ngarnet will be higher than was experienced prior to the shutdown on December,\n31, 2008 at the mine in Fernwood, Idaho.\n\n\nResults for the year ended December 31, 2008 were also released. Results\nhave been filed and may be viewed at www.sedar.com.\n\n\nResults of Operations\n\n\n2008 sales revenue for WGI reached its highest level ever at more than\n$27.8 million for the year. This represents a 5 percent increase over 2007\nrevenue ($27.82 million - 2008 versus $26.46 million - 2007) as 24 percent\nhigher prices in the minerals segments of the business more than compensated\nfor a 16 percent decline in sales volume due to lack of supply. Waterjet\nreplacement parts revenue grew 9 percent. Currency exchange rates were\nfavourable for much of the year contributing nearly 3 percent of the growth.\nNear the end of the year, WGI's markets began to cool as the global economic\nclimate turned decidedly negative, although sales remained steady.\n\n\nAnnual gross profit margins decreased to 18.4 percent in 2008, compared\nwith 19.8 percent in 2007. Increase in sales price for minerals were offset by\nincreased production costs for both the U.S. produced and Indian sourced\ngarnet. The increase in the U.S. production was due to lower concentrate of\ngarnet in the ground, the need to process more run of mine to produce finished\nproduct and due to equipment break downs. The increase in costs in India were\ndue to a combination of factors principally, higher energy costs, lower\nconcentrate of garnet prior to the sale of Transworld Garnet India (Pvt.) Ltd.\n("TGI") to V.V. Mineral ("VVM") and due to higher sourcing costs from VVM\nunder the distribution agreement after August 15, 2008. Also contributing to\nthe reduction in gross margin was the realization of higher manufacturing\ncosts at International Waterjet Parts ("IWP") in 2008.\n\n\nTotal expenses increased 17 percent year over year due in large part to\ncosts associated with the proxy solicitation in June 2008 of $0.3...