Aber Diamond Corporation - Fiscal Year End Report

Apr 23, 2001, 01:00 ET from Aber Diamond Corporation

    TORONTO, April 23 /PRNewswire/ - ABER DIAMOND CORPORATION (NASDAQ- ABERF,
 TSE-ABZ)
     Aber's net earnings for the fiscal year ended January 31, 2001 totaled
 $1.2 million or $0.02 per share, compared with a net loss of $5.6 million or
 $0.11 per share a year earlier. The prior year's results included a write-down
 of $8.5 million of mineral properties, a $3.5 million provision for closure of
 the Vancouver office and a $49,000 write-down of investments in securities and
 furniture.
     Aber's interest income from short-term monetary investments totaled $8.8
 million, up 4% from $8.5 million a year earlier. The slight increase is due to
 higher short-term interest rates. Aber's expenses decreased during the latest
 fiscal year to $5.3 million, down from $15.9 million a year earlier. Previous
 year's costs included $12.1 million of provisions and write-downs referred to
 above. Ongoing expenditures for the prior year amounted to $3.9 million.
 General and administrative expenses were $5.2 million, up 37% from $3.8
 million. This increase was due to higher staffing levels and the set up of the
 Toronto office.
     Aber posted a tax provision of $2.4 million compared to a benefit of $1.9
 million in the previous year. This provision was mainly due to current year's
 positive earnings. Large Corporation Taxes expensed in the year totaled $0.6
 million compared with $0.8 million a year earlier.
     During the year ended January 31, 2001, working capital was decreased to
 $106.8 million from $194.1 million the previous year as Aber funded its share
 of both the Diavik and Snap Lake property programs. In the current year's
 figures, working capital of $19.3 million for the Diavik project has been
 included. As of January 31, 2001, Aber had $123.9 million in cash and cash
 equivalents, of which $34.5 million is held at the Diavik project, compared
 with $196.3 million a year earlier.
     During the fiscal year ended January 31, 2001, the Company received $5.1
 million from the exercise of 650,000 share purchase options. During the
 previous year, the Company received $104.7 million from the issue of 8.1
 million shares. This included proceeds of $103.9 million, after costs, from
 the private placement of 8.0 million common shares with Tiffany & Co., and
 $0.8 million from the issue of 103,000 shares from the exercise of share
 purchase options.
     Investing activities with respect to mineral property expenditures and
 deferred charges were $71.0 million during the year, up 173% from $26.0
 million a year earlier. The most significant investment in both periods was
 for the Diavik properties. In the latest period, Aber invested $48.0 million
 in the Diavik properties, mainly for the permitting process, construction
 engineering and site infrastructure preparation for development in 2001. The
 previous year, Aber invested $22.1 million in the Diavik properties, mainly
 for the feasibility study and the permitting process. Aber has also spent $12
 million on equipment for the Diavik project in the current year.
     The other significant exploration cost in the current year was for the
 Snap Lake Project at Camsell Lake. Aber's share of expenditures on Snap Lake
 was $20.0 million up from $0.2 million a year earlier. The expenditure was for
 the advanced exploration program. Subsequent to the fiscal year ended January
 31, 2001, Aber sold its 32.4% interest in the Snap Lake Project to De Beers
 Canada Mining Inc. for approximately $173 million.
     Other cash exploration expenditures incurred during the current year were
 nil compared to $1.9 million in the prior year.
 
     Consolidated financial statements follow.
 
     Aber also announced that its Annual General Meeting is to be held on
 Thursday, June 28, 2001 at 16:00 EST, at The TSE Conference Centre and Stock
 Market Place, The Exchange Tower, Toronto.
 
 
 
     ABER DIAMOND CORPORATION
     Consolidated Balance Sheets
     January 31, 2001 and 2000
     (expressed in thousands of Canadian dollars)
                                                       2001            2000
                                                       ----            ----
     Assets
     Current assets:
       Cash and cash equivalents                  $   123,912     $   118,161
       Money market instruments                             -          78,106
       Accounts receivable                              1,604           3,192
       Prepaid expenses                                 1,187             124
     -------------------------------------------------------------------------
                                                      126,703         199,583
 
     Deferred mineral property costs                  195,510         112,795
     Deferred charges                                   5,333           2,085
     Capital assets                                     9,445              54
 
     -------------------------------------------------------------------------
                                                  $   336,991     $   314,517
     -------------------------------------------------------------------------
 
     Liabilities and Shareholders' Equity
     Current liabilities:
       Accounts payable and accrued liabilities   $    19,883     $     5,452
     Future income tax liability                       16,061          14,291
     Shareholders' equity:
       Share capital                                  325,787         320,671
       Deficit                                        (24,740)        (25,897)
     -------------------------------------------------------------------------
                                                      301,047         294,774
 
     -------------------------------------------------------------------------
                                                  $   336,991     $   314,517
     -------------------------------------------------------------------------
 
 
     ABER DIAMOND CORPORATION
     Consolidated Statements of Earnings and Deficit
     Years ended January 31, 2001, 2000 and 1999
     (expressed in thousands of Canadian dollars)
 
                                              2001         2000         1999
                                              ----         ----         ----
     Income:
       Interest                           $   8,828    $   8,458    $   5,020
     Expenses:
       General and administrative             5,216        3,817        2,857
       Amortization                              59           36           50
       Closure of Vancouver office                -        3,500            -
       Write down of:
         Deferred mineral property costs          -        8,538            -
         Capital assets                           -           14            -
         Investments in securities                -           35           75
     -------------------------------------------------------------------------
                                              5,275       15,940        2,982
     -------------------------------------------------------------------------
 
     Earnings (loss) before income taxes      3,553       (7,482)       2,038
     Income taxes payable (recovery)          2,396       (1,916)       1,736
     -------------------------------------------------------------------------
     Net earnings (loss)                      1,157       (5,566)         302
     Deficit, beginning of year             (25,897)     (20,331)     (20,633)
     -------------------------------------------------------------------------
     Deficit, end of year                 $ (24,740)   $ (25,897)   $ (20,331)
     -------------------------------------------------------------------------
     Earnings (loss) per share            $    0.02    $   (0.11)   $    0.01
     -------------------------------------------------------------------------
 
 
 
     ABER DIAMOND CORPORATION
     Consolidated Statements of Cash Flows
     Years ended January 31, 2001, 2000 and 1999
     (expressed in thousands of Canadian dollars)
 
                                             2001          2000         1999
                                             ----          ----         ----
     Cash provided by (used in):
     Operations
       Net earnings (loss) for the year   $   1,157    $  (5,566)   $     302
       Items not involving cash
         Amortization                            59           36           50
         Writedown of:
           Deferred mineral property
            costs                                 -        8,538            -
           Capital assets                         -          218            -
           Investments in securities              -           35           75
       Future income taxes                    1,770       (2,724)       1,189
       Change in non-cash operating
        working capital                       2,990       (4,088)       2,082
     -------------------------------------------------------------------------
                                              5,976       (3,551)       3,698
     Financing:
       Issue of and subscriptions for
        common shares, for cash, net
        of issue expenses                     5,116      104,701      105,025
 
     Investments:
       Deferred mineral property costs      (69,022)     (24,160)     (18,036)
       Deferred charges                      (2,022)      (1,848)        (264)
       Capital assets                       (12,403)         (79)         (90)
       Money market instruments              78,106      (29,312)     (48,794)
     -------------------------------------------------------------------------
                                             (5,341)     (55,399)     (67,184)
     -------------------------------------------------------------------------
 
     Increase in cash and cash
      equivalents                             5,751       45,751       41,539
     Cash and cash equivalents,
      beginning of year                     118,161       72,410       30,871
     -------------------------------------------------------------------------
     Cash and cash equivalents,
      end of year                         $ 123,912    $ 118,161    $  72,410
     -------------------------------------------------------------------------
 
     Change in non-cash operating
      working capital:
       Accounts receivable                $   2,732    $  (3,055)   $     737
       Prepaid expenses                          15            4           33
       Accounts payable and accrued
        liabilities                             243       (1,037)       1,312
     -------------------------------------------------------------------------
                                          $   2,990    $  (4,088)   $   2,082
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
 

SOURCE Aber Diamond Corporation
    TORONTO, April 23 /PRNewswire/ - ABER DIAMOND CORPORATION (NASDAQ- ABERF,
 TSE-ABZ)
     Aber's net earnings for the fiscal year ended January 31, 2001 totaled
 $1.2 million or $0.02 per share, compared with a net loss of $5.6 million or
 $0.11 per share a year earlier. The prior year's results included a write-down
 of $8.5 million of mineral properties, a $3.5 million provision for closure of
 the Vancouver office and a $49,000 write-down of investments in securities and
 furniture.
     Aber's interest income from short-term monetary investments totaled $8.8
 million, up 4% from $8.5 million a year earlier. The slight increase is due to
 higher short-term interest rates. Aber's expenses decreased during the latest
 fiscal year to $5.3 million, down from $15.9 million a year earlier. Previous
 year's costs included $12.1 million of provisions and write-downs referred to
 above. Ongoing expenditures for the prior year amounted to $3.9 million.
 General and administrative expenses were $5.2 million, up 37% from $3.8
 million. This increase was due to higher staffing levels and the set up of the
 Toronto office.
     Aber posted a tax provision of $2.4 million compared to a benefit of $1.9
 million in the previous year. This provision was mainly due to current year's
 positive earnings. Large Corporation Taxes expensed in the year totaled $0.6
 million compared with $0.8 million a year earlier.
     During the year ended January 31, 2001, working capital was decreased to
 $106.8 million from $194.1 million the previous year as Aber funded its share
 of both the Diavik and Snap Lake property programs. In the current year's
 figures, working capital of $19.3 million for the Diavik project has been
 included. As of January 31, 2001, Aber had $123.9 million in cash and cash
 equivalents, of which $34.5 million is held at the Diavik project, compared
 with $196.3 million a year earlier.
     During the fiscal year ended January 31, 2001, the Company received $5.1
 million from the exercise of 650,000 share purchase options. During the
 previous year, the Company received $104.7 million from the issue of 8.1
 million shares. This included proceeds of $103.9 million, after costs, from
 the private placement of 8.0 million common shares with Tiffany & Co., and
 $0.8 million from the issue of 103,000 shares from the exercise of share
 purchase options.
     Investing activities with respect to mineral property expenditures and
 deferred charges were $71.0 million during the year, up 173% from $26.0
 million a year earlier. The most significant investment in both periods was
 for the Diavik properties. In the latest period, Aber invested $48.0 million
 in the Diavik properties, mainly for the permitting process, construction
 engineering and site infrastructure preparation for development in 2001. The
 previous year, Aber invested $22.1 million in the Diavik properties, mainly
 for the feasibility study and the permitting process. Aber has also spent $12
 million on equipment for the Diavik project in the current year.
     The other significant exploration cost in the current year was for the
 Snap Lake Project at Camsell Lake. Aber's share of expenditures on Snap Lake
 was $20.0 million up from $0.2 million a year earlier. The expenditure was for
 the advanced exploration program. Subsequent to the fiscal year ended January
 31, 2001, Aber sold its 32.4% interest in the Snap Lake Project to De Beers
 Canada Mining Inc. for approximately $173 million.
     Other cash exploration expenditures incurred during the current year were
 nil compared to $1.9 million in the prior year.
 
     Consolidated financial statements follow.
 
     Aber also announced that its Annual General Meeting is to be held on
 Thursday, June 28, 2001 at 16:00 EST, at The TSE Conference Centre and Stock
 Market Place, The Exchange Tower, Toronto.
 
 
 
     ABER DIAMOND CORPORATION
     Consolidated Balance Sheets
     January 31, 2001 and 2000
     (expressed in thousands of Canadian dollars)
                                                       2001            2000
                                                       ----            ----
     Assets
     Current assets:
       Cash and cash equivalents                  $   123,912     $   118,161
       Money market instruments                             -          78,106
       Accounts receivable                              1,604           3,192
       Prepaid expenses                                 1,187             124
     -------------------------------------------------------------------------
                                                      126,703         199,583
 
     Deferred mineral property costs                  195,510         112,795
     Deferred charges                                   5,333           2,085
     Capital assets                                     9,445              54
 
     -------------------------------------------------------------------------
                                                  $   336,991     $   314,517
     -------------------------------------------------------------------------
 
     Liabilities and Shareholders' Equity
     Current liabilities:
       Accounts payable and accrued liabilities   $    19,883     $     5,452
     Future income tax liability                       16,061          14,291
     Shareholders' equity:
       Share capital                                  325,787         320,671
       Deficit                                        (24,740)        (25,897)
     -------------------------------------------------------------------------
                                                      301,047         294,774
 
     -------------------------------------------------------------------------
                                                  $   336,991     $   314,517
     -------------------------------------------------------------------------
 
 
     ABER DIAMOND CORPORATION
     Consolidated Statements of Earnings and Deficit
     Years ended January 31, 2001, 2000 and 1999
     (expressed in thousands of Canadian dollars)
 
                                              2001         2000         1999
                                              ----         ----         ----
     Income:
       Interest                           $   8,828    $   8,458    $   5,020
     Expenses:
       General and administrative             5,216        3,817        2,857
       Amortization                              59           36           50
       Closure of Vancouver office                -        3,500            -
       Write down of:
         Deferred mineral property costs          -        8,538            -
         Capital assets                           -           14            -
         Investments in securities                -           35           75
     -------------------------------------------------------------------------
                                              5,275       15,940        2,982
     -------------------------------------------------------------------------
 
     Earnings (loss) before income taxes      3,553       (7,482)       2,038
     Income taxes payable (recovery)          2,396       (1,916)       1,736
     -------------------------------------------------------------------------
     Net earnings (loss)                      1,157       (5,566)         302
     Deficit, beginning of year             (25,897)     (20,331)     (20,633)
     -------------------------------------------------------------------------
     Deficit, end of year                 $ (24,740)   $ (25,897)   $ (20,331)
     -------------------------------------------------------------------------
     Earnings (loss) per share            $    0.02    $   (0.11)   $    0.01
     -------------------------------------------------------------------------
 
 
 
     ABER DIAMOND CORPORATION
     Consolidated Statements of Cash Flows
     Years ended January 31, 2001, 2000 and 1999
     (expressed in thousands of Canadian dollars)
 
                                             2001          2000         1999
                                             ----          ----         ----
     Cash provided by (used in):
     Operations
       Net earnings (loss) for the year   $   1,157    $  (5,566)   $     302
       Items not involving cash
         Amortization                            59           36           50
         Writedown of:
           Deferred mineral property
            costs                                 -        8,538            -
           Capital assets                         -          218            -
           Investments in securities              -           35           75
       Future income taxes                    1,770       (2,724)       1,189
       Change in non-cash operating
        working capital                       2,990       (4,088)       2,082
     -------------------------------------------------------------------------
                                              5,976       (3,551)       3,698
     Financing:
       Issue of and subscriptions for
        common shares, for cash, net
        of issue expenses                     5,116      104,701      105,025
 
     Investments:
       Deferred mineral property costs      (69,022)     (24,160)     (18,036)
       Deferred charges                      (2,022)      (1,848)        (264)
       Capital assets                       (12,403)         (79)         (90)
       Money market instruments              78,106      (29,312)     (48,794)
     -------------------------------------------------------------------------
                                             (5,341)     (55,399)     (67,184)
     -------------------------------------------------------------------------
 
     Increase in cash and cash
      equivalents                             5,751       45,751       41,539
     Cash and cash equivalents,
      beginning of year                     118,161       72,410       30,871
     -------------------------------------------------------------------------
     Cash and cash equivalents,
      end of year                         $ 123,912    $ 118,161    $  72,410
     -------------------------------------------------------------------------
 
     Change in non-cash operating
      working capital:
       Accounts receivable                $   2,732    $  (3,055)   $     737
       Prepaid expenses                          15            4           33
       Accounts payable and accrued
        liabilities                             243       (1,037)       1,312
     -------------------------------------------------------------------------
                                          $   2,990    $  (4,088)   $   2,082
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
 SOURCE Aber Diamond Corporation