Business
WGI Heavy Minerals announces third quarter 2005 results
WGI Heavy Minerals announces third quarter 2005 results.
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\n\nwww.wgiheavyminerals.com\n\nCOEUR D'ALENE, ID, Nov. 4 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG)\ntoday announced results for the three-month and nine-month periods ended\nSeptember 30, 2005.\nWith respect to the Company's investments in India, the third quarter of\n2005 continued to be a transitional period for WGI Heavy Minerals, as it works\nto constructively resolve licensing, permitting, and commercial production\nissues in India.\n\nThird-Quarter Performance\n\nRevenues for the third quarter of 2005 decreased 35.7 percent to\n$4.75 million, compared with $7.39 million for the year-ago period, due to the\nlack of ilmenite sales in 2005. Excluding ilmenite, revenues increased\n24 percent to $4.75 million in the third quarter of 2005 from $3.83 million in\nthe third quarter of 2004. Revenues expanded 40 percent for the Company's U.S.\noperations, from $1.22 million in the third quarter of 2004 to $1.71 million\nin the third quarter of 2005. The Company's European operation also generated\nrapid sales growth, amounting to a 38 percent increase, to $1.47 million in\nthe third quarter of 2005 from $1.07 million in the year-ago period. Sales of\nthe Company's Indian garnet operations grew marginally from $1.54 million to\n$1.57 million, while total sales in India declined 69 percent, due to the lack\nof ilmenite shipments.\nDespite rising fuel costs, gross profit margins improved from\n16.7 percent in the third quarter of 2004 to 25.4 percent in the third quarter\nof 2005, as a result of improved operating efficiencies at its U.S.\noperations, the inclusion of IWP waterjet operations and modest price\nincreases.\nGeneral and administrative expenses increased to 30.9 percent of net\nsales in the third quarter of 2005, compared to 16.2 percent in the year-ago\nperiod, largely due to absence of ilmenite sales, which totaled $3.56 million\nin the third quarter of 2004. The Company posted a $23,000 foreign exchange\ngain in the third quarter of 2005, compared to a $310,000 foreign exchange\ngain in the third quarter of 2004. The Company also booked $92,000 of \nstock-based compensation in the third quarter of 2005, compared to $80,000 of\nstock-based compensation in the year-ago period.\nAs a result, the Company posted a net loss of $0.30 million, or $0.01 per\nshare, for the third quarter of 2005, compared with net earnings...