Thursday May 15, 07:04 PM
Nautilus Minerals swings to Q1 net profit, due to reduced expenses
LONDON (Thomson Financial) - Toronto-based mining and exploration company Nautilus Minerals Inc (NUS.TO - news) , which is exploring
for copper, zinc, gold and silver on the sea bed in the western Pacific Ocean, swung to a net profit in the first quarter to end-March from a loss the same period a year earlier, thanks to reduced expenses.
For the three months to end-March, the company posted a profit of $0.8 million or EPS of $0.01, compared to a loss of $5.1 million or loss per share of $0.05 for the same period in 2007.
Overall, Nautilus' expenses decreased to $2.5 million for the first quarter from $7.4 million for the same period in 2007, which was largely attributable to the timing of the planned exploration programs for 2008 and foreign exchange gains.
Nautilus has budgeted to spend about $20 million for exploration work in 2008 on its Solwara 1 project, in the territorial waters of Papua New Guinea, and other regional exploration programs. It said it is on track for production at the Solwara 1 project in the third quarter of 2010.
It also said it is in a strong financial position, with $308 million in cash and cash equivalents held on deposit in banks at the end of the first quarter.
The company was formed in May 2006 and aims to start producing minerals from 2010. Its largest shareholders are Teck Cominco (TCK-A.TO - news) , with a 7.2 percent stake, Anglo American (LSE: AAL.L - news) , with 5.7 percent, and Epion, with 22.4 percent -- controlled by Russian mining holding company Metalloinvest.
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