SYMBOL: DFI
VANCOUVER, Feb. 17 /CNW/ - Diamond Fields International Ltd. (TSX:DFI)
("DFI" or the Company") announces results for the period ended December 31st,
2005.
Net loss for the six months ended December 31, 2005 was $(2,894,106) or
$(0.03) per share, compared with a net earnings of $362,172 or $0.00 per share
in 2004. All revenue for the six months ended December 31, 2005 resulted from
the sale of diamonds held in inventory or recovered during operations. A total
of 7,846 carats were sold at an average price of approximately $183 per carat
generating revenue of $1,431,911. Comparatively, the Company sold 26,250
carats in the six months ended December 31 2004 at an average price of $205
per carat generating revenue of $5,391,621. Production, royalty and selling
expenses associated with the sale of inventory totaled $2,324,888; whereas,
these operating costs for the same period in 2004 were $2,490,067. The higher
costs in 2004 resulted from higher production and the terms of the contract
mining agreement with Samicor Mining (Pty) Ltd. The Company generated an
operating loss of $(892,977) for the quarter ended December 31, 2005 compared
with $2,901,554 for the quarter ended December 31, 2004. Factors contributing
to the loss included downtime due to equipment failures on the mv DF
Discoverer, along with weather delays, a port call for refueling, and the
unpredictable grade of the resource.
The Company incurred general and administrative expenses of $2,043,621
during the six months ended December 31, 2005 compared to $1,759,626 during
2004. Included in these amounts are financing fees and interest, which have
increased due to the ship acquisition loan with Quest Capital Corporation and
the note payable. The Quest Capital loan was repaid in full in November, 2005
with funds raised from the Company's private placement closing, announced on
November 7th, 2005. Office expense increased as a result of the Company's
expanded operations. Stock based compensation decreased due to the graded
vesting of the Company's stock option plan.
The complete report of the Company's unaudited financial statements and
related notes for the second quarter period ended December 31, 2005, together
with Management's Discussion and Analysis, have been filed on SEDAR and are
available at www.sedar.com and on the Company's website at
www.diamondfields.com.
Diamond Fields International Ltd. is an internationally active
exploration and mining company pursuing mineral exploration opportunities
worldwide. The Company's corporate strategy is to maximize cash flow from its
Namibian marine diamond concessions and systematically explore and develop its
international mineral exploration projects. In addition, the Company continues
to explore opportunities to acquire new economic mineral projects worldwide.
DIAMOND FIELDS INTERNATIONAL LTD.
"Roger Daniel"
Roger Daniel, President and Chief Executive Officer
Forward-Looking Statements:
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific factors
identified in Diamond Fields' periodic filings with Canadian Securities
Regulators. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking
statement can be guaranteed and actual future results may vary materially.
Diamond Fields does not assume the obligation to update any forward-looking
statement.
