| ||Mon Nov 15, 2004|
Diamond Fields Reports First Quarter Earnings
| ||Vancouver, November 15, 2004 - Diamond Fields International Ltd. (TSX:DFI) is pleased to announce first quarter earnings for the three months ended September 30, 2004. All revenue resulted from the sale of diamonds held in inventory or recovered during operations. A total of 20,799 carats were sold at an average price of approximately US$210 per carat generating revenue of US$4,376,775. Comparatively, the Company sold 563 carats in the same period during 2003 at an average price of US$158 per carat generating revenue of US$89,137. Production, royalty and selling expenses associated with the sale of inventory totaled US$1,921,057; whereas, these operating costs for the same period in 2003 were US$81,421. The Company generated an operating margin of US$2,455,718 for the three months ended September 30, 2004 compared with US$7,716 for the same period in 2003.|
Net earnings for the three months ended September 30, 2004 was US$822,159 or $0.01 per share, compared with a net loss of US$(478,387) or US$(0.01) per share in 2003. The increase in earnings was primarily due to the Company's jointly controlled operations with Samicor Mining Services (Pty) Ltd. in mining Diamond Fields ML111 marine diamond concession off the coast of Luderitz, Namibia.
On October 14, 2004 Diamond Fields announced production had been suspended pending agreement on a new mine plan, and that it had agreed, in principle, with Samicor to amend the terms of the operations. The revised terms would increase DFI's maximum contribution to operating costs and future operations would be on a month to month basis. To date the Company and Samicor have not agreed on a mine plan, and the Company is considering other commercial arrangements with Samicor.
Other developments with the Namibian marine concessions include the purchase of the fully equipped twin airlift diamond mining vessel to be named "mv DF Discoverer". The Company intends to refit and upgrade the vessel and improve its mining efficiency. DFI contemplates resumption of mining with this vessel in approximately 6 months time after completion of required upgrades. Also the Company entered into a lease agreement with the option to purchase the Sea Diamond Miner. The tool offers the possibility of taking the marine diamond mining industry to a new level by lowering costs and raising efficiency in diamond recovery.
During the three months ended September 30, 2004 Diamond Fields announced the expansion of the East Greenland, Ammassalik project area through a joint venture with adjacent land holder Nuna Minerals A/S. On August 12, 2004 the Company announced it had entered into an option agreement with Liberian based company Ducor Minerals Inc. to earn interest in the Gbapolu and Grand Gedeh Mineral Exploration Agreements in Liberia. Results of a diamond drilling program were announced on August 17, 2004 of the Ogna nickel-copper project and plans for a subsequent geophysics program were announced. Based on exploration results and competing priorities management has decided to relinquish three of its four Sierra Leone properties, and not to pursue additional exploration on certain diamond and nickel projects in Madagascar. Accordingly, associated accumulated exploration costs have been written off. The Company is still actively pursuing exploration programs in Sierra Leone and Madagascar notwithstanding the Company's partial write-down of its properties in these countries.
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.
For the complete First Quarter Report, please visit www.diamondfields.com.
DIAMOND FIELDS INTERNATIONAL LTD.
"Gregg J. Sedun"
Gregg J. Sedun, President and Chief Executive Officer
For further information contact: Investor Relations (1-888-682-2113) extension 257
All dollar values are stated in U.S. currency unless otherwise specified.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Diamond Fields' period filings with Canadian Securities Regulators. Such forwardlooking information represents managements' best judgment based on information currently available. No forwardlooking statement can be guaranteed and actual future results may vary materially. Diamond Fields does not assume the obligation to update any forward-looking statement.
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