Business
WGI Heavy Minerals announces third quarter 2006 results
WGI Heavy Minerals announces third quarter 2006 results.
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\n\nCOEUR D'ALENE, ID, Nov. 10 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG)\ntoday announced results for the third quarter ended September 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 and the Company is\nfocussed on strengthening its core businesses.\n\nResults of Operations - Comparison of Nine Months of 2006 with\nNine Months of 2005\n\nRevenues for the nine-month period ended September 30, 2006 increased\n15.7 percent to $16.47 million, compared with $14.24 million for same period\nin 2005 due to higher prices, strong growth across the entire product line at\nthe Company's Kominex subsidiary and the addition of the IWP business for a\nfull 9.5 months in 2006 compared to 6.5 months in 2005.\nGross operating profit margins decreased to 14.2 percent in the nine\nmonths of 2006, compared with 17.1 percent in the nine months of 2005.\nGeneral and administrative expenses fell to 28.2 percent of net sales in\nthe nine months of 2006, compared to 29.9 percent in the nine months of 2005.\nThe Company posted a negligible foreign exchange gain in the nine months of\n2006 as compared to a $0.02 million foreign exchange loss in the nine months\nof 2005. The Company expensed development costs with respect to Andhra Pradesh\nin the amount of $0.13 million in the nine months of 2006 versus the restated\n$1.84 million write-down of Andhra Pradesh assets and $0.98 million in Indian\nadvances written off in the nine months of 2005. The Company also booked\n$0.82 million of stock-based compensation in the nine months of 2006 compared\nto $0.49 million in the nine months of 2005.\nInterest income rose by 29 percent from $0.48 million for the nine months\nof 2005 to $0.62 million in the nine months of 2006 due to increasing interest\nrates on short-term deposits.\nIncome tax expense for the nine months was $0.13 million and is the\nresult of profits generated by the Company's subsidiary, Kominex, located in\nEurope.\nAs a result, the Company posted a net loss of $3.23 million, or $0.13 per\nshare, for the nine months of 2006, compared with a restated net loss of\n$4.93 million, or $0.20 per share, for the nine months of 2005.\n\nResult of Operations - Comparison of Third Quarter 2006...