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Jericho Diamond Mine:
- The total number of dry tonnes processed was 171,000 for the first
quarter of 2007, at an average grade of 0.44 carats per tonne,
resulting in carat production of 74,500 carats.
- The value of production for the first quarter of 2007, based on
Government Diamond Valuations ("GDV") values, was $6.4 million USD.
When applying exchange rates at the time of the GDV valuation dates,
the equivalent Canadian dollar value of production was $7.3 million.
The total cash operating cost related to the production of these
goods was $17.1 million.
- The 2007 winter road was open for approximately 10 weeks, allowing
the Company to fully mobilize all of its desired supplies, equipment,
and spares that it needs for the upcoming year.
- Operational issues lead to the completion of various analyses and
assessments conducted through the utilization of the Technical
Support Agreement with Teck Cominco Limited. The following
improvement items have or will be addressed over the next two
quarters:
- Reduced throughput to focus mining efforts on waste stripping.
- Purchased, mobilized and commissioned a jaw crusher to improve
plant efficiency.
- Introduced smaller sieve size screen on primary screen in order
to capture a greater proportion of smaller goods.
- Independent batch testing of the different geological lobes
will be completed.
- Process plant monitoring program to be completed.
- Complete conversion to rotary drill use in the pit blasting
program is being investigated.
- Realignment of pit ramps and benches will be undertaken.
- Improved grade control measures are being implemented.
Corporate:
- Continuing negative cash flows being experienced at the Jericho
Diamond Mine operations, combined with the requirement to fund winter
road inventory purchases, led to the completion of a $22.5 million
financing on April 17, 2007.
- Mr. Grant Ewing, Executive Vice President, Corporate Development and
Mr. Daniel Johnson, Executive Vice President, Operations have advised
that they will be leaving the Company during the second quarter to
pursue other business interests.
Exploration:
- 500-tonne bulk sample collected on the JD-3 kimberlite and sent for
processing at De Beers Canada Inc.'s dense media separation
laboratory in Grand Prairie. Processing results are expected later
this year.
- A drilling program on the Anuri kimberlite began during the quarter
and is expected to be completed by the end of May.
- A geophysics program will be completed on the Rockinghorse, Polar and
Jericho properties.
- 2007 exploration programs are budgeted at $8 million and will be
funded through existing flow-through funds.
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Please refer to Tahera's website (www.tahera.com) or www.SEDAR.com to view the complete first quarter report including the management discussion and analysis, financial statement and the notes thereto.
Mr. Dan Johnson is Tahera's qualified person as defined in National Policy 43-101 for its Jericho property and has supervised the preparation of the technical information included in this press release. Mr. Johnson is an officer of Tahera and is not considered independent of Tahera.
Mr. Dale Mah, P. Geol., is Tahera's qualified person as defined in National Policy 43-101 for its exploration programs and has supervised the preparation of the exploration information included in this press release. Mr. Mah is an employee of Tahera and is not considered independent of Tahera.
Tahera has scheduled a conference call at 11:00 a.m. Eastern Standard Time on Monday, May 7, 2007. Interested parties are invited to participate in the call by dialing 416-644-3424 or toll-free 1-800-594-3790. To access a conference replay (available at 1:00 p.m. EST), dial 416-640-1917 or toll-free 1-877-289-8525 and enter pass code 21231093, followed by the number sign.
2007 First Quarter Results
At March 31, 2007, Tahera's cash and cash equivalents balance is $7,443,000, a decrease of $20,114,000 from the balance at December 31, 2006. The Company incurred significant expenditures during the first quarter, as fuel, explosives and other supplies were mobilized on the winter ice road to the Jericho Diamond Mine. The Company realized revenues of $10,513,000 and an operating loss of $15,749,000 during the period. The Company recorded a net loss for the first quarter of $14,740,000 ($0.08 per share), as compared to income of $3,432,000 ($0.02 per share) for the first quarter of 2006.
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Financial Statement Highlights (in thousands of Canadian dollars, except
for per share data):
As at As at
Mar. 31, Dec. 31,
2007 2006
(unaudited)
----------- -----------
Current Assets $ 36,498 $ 44,885
Capital and Other Assets 206,822 203,069
----------- -----------
$ 243,320 $ 247,954
----------- -----------
----------- -----------
Current Liabilities $ 47,675 $ 31,469
Long-Term Liabilities 39,982 43,624
Share Capital - Common Shares 186,489 189,509
Common Share Purchase Warrants 9,212 9,212
Contributed Surplus 5,527 5,049
Deficit (45,649) (30,909)
Accumulated Other Comprehensive Income 84 -
----------- -----------
$ 243,320 $ 247,954
----------- -----------
----------- -----------
Three Three
Months Months
Ended Ended
Mar. 31, Mar. 31,
2007 2006
(unaudited) (unaudited)
Revenues $ 10,513 $ -
Cost of Goods Sold 26,262 -
----------- -----------
Operating Loss (15,749) -
Corporate, General and
Administrative Expenses (1,111) (1,384)
Amortization of Non-Operating Assets (103) (64)
Other Items (797) 99
----------- -----------
Loss for the Period before Income Taxes (17,760) (1,349)
Provision for Income Taxes - Current - (74)
Recovery of Income Taxes - Future 3,020 4,855
Net (Loss) Income for the Period $ (14,740) $ 3,432
----------- -----------
----------- -----------
(Loss) Earnings per Share -
Basic and Diluted(1) $ (0.08) $ 0.02
----------- -----------
----------- -----------
Cash Flows From (Used In):
Operating Activities $ (12,398) $ (659)
Investing Activities (7,253) (18,841)
Financing Activities (463) 23,557
----------- -----------
Net (Decrease) Increase in Cash
and Cash Equivalents (20,114) 4,057
Cash and Cash Equivalents -
Beginning of Period 27,557 15,445
----------- -----------
Cash and Cash Equivalents - End of Period $ 7,443 $ 19,502
----------- -----------
----------- -----------
(1) Per share information has been retroactively restated to give
effect to the one-for-five share consolidation that was approved by
the Company's shareholders on May 15, 2006.
Cautionary Statement Regarding Forward Looking Information
This press release contains "forward looking information" that reflects
Tahera Diamond Corporation's current beliefs, plans, objectives, estimates,
intentions, expectations and projections about its future results. When used
in this press release, words such as "estimate", "intend", "expect",
"anticipate" and similar expressions are intended to identify forward-looking
information, which is based on the opinions and estimates of management at the
date the statements are made. By its very nature, forward looking information
is subject to risks and uncertainties and other factors that could cause
Tahera Diamond Corporation's actual results, performance, prospects or
opportunities to differ materially from those expressed in, or implied by,
forward-looking information. These risks, uncertainties and factors may
include, but are not limited to exposure to interest rate fluctuations,
foreign currency risks, changes in federal, provincial and territorial laws,
rules and regulations relating to the Company's business and environmental
matters, changes in tax regulations and accounting pronouncements, the
inherent risks involved in the exploration, development, and mining of mineral
properties, the uncertainties involved in interpreting drilling results and
other data, fluctuating commodity prices, unforeseeable adverse climate
conditions, the possibility of cost overruns or unanticipated costs and
expenses, uncertainties relating to the availability and costs of financing
needed in the future, other factors and the accuracy of management's
assumptions.
Specifically, in making statements concerning future estimated grades the
Company has assumed that mining operations will proceed in the normal course
according to schedule and that the statistical computations and the
assumptions used and judgments made in interpreting engineering and geological
information will prove to be correct. There is significant uncertainty in any
mineral resource estimate and the actual deposits encountered may differ
materially from the Company's estimates. With respect to statements concerning
diamond prices, Tahera has assumed that current world economic conditions and
current rough diamond supply and demand fundamentals will not materially
change. Operating cost estimates have been based on the Company's experience
to date; however increases in labour and fuel costs and any unforeseen mining
issues could materially impact these forecasts. While the Company considers
these assumptions to be reasonable based on information currently available to
it, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release or as of the
date otherwise specifically indicated herein. Due to risks and uncertainties,
including the risks and uncertainties identified above and elsewhere in this
press release, actual events may differ materially from current expectations.
Tahera Diamond Corporation disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise.
The above press release makes reference to certain non-GAAP financial
measures such as cash operating costs and value of production, to assist the
reader in assessing the Company's financial performance. Non-GAAP financial
measures do not have any standard meaning prescribed by GAAP and are therefore
unlikely to be comparable to similar measures presented by other issuers. See
"Non-GAAP Financial Measures" in the Management's Discussion & Analysis.
On Behalf of the Board,
R. Peter Gillin Chairman and CEO
Tahera Diamond Corporation
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%SEDAR: 00003313E
SOURCE: Tahera Diamond Corporation
Investor Relations, Tel: (416) 777-1998, Fax: (416) 777-1898, Toll free: (877)
777-2004, Email: investor_relations@tahera.com
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