Doug Ashbury
Northern News Services

Yellowknife (Dec 20/99) - Buoyed by Ekati diamond sales, Dia Met Minerals reports $30.5 million in profits over the first three frames of '99, according to the company's financial results.

Dia Met's 29 per cent of diamond sales for the nine months ending Oct. 30 was $124 million. Over the three quarters, diamond sales from Ekati totalled $427.6 million.

"The Ekati diamond mine has established an international reputation as reliable supplier of high-quality diamonds from Canada," Dia Met said.

Demand continues to exceed supply, the British Columbia-based company adds.

February through October, some 1,757,000 carats of rough diamonds were sold for $428.1 million ($289 million US) at an average of $244.45 ($165 US) a carat.

Dia Met's fiscal year ends Jan. 31.

During third quarter, there were three diamond sales. There have been nine sales of Ekati diamonds between February and October.

For the nine months, the company made $30.5 million, $1.01 per share, compared to a $1.6 million loss, or five cents a share, for the same nine months a year earlier.

Revenues were $78.2 million compared to $1.4 million. Expenses were $27.1 million compared to $351,363.

Repayment of Dia Met's obligation for development of Ekati commenced in the nine months ended Oct. 31. By the end of October, $34.6 million had been applied to Dia Met's debt obligations for Ekati. At the end of October, $34.7 million had been set aside for repayment and was applied to the obligation in November.

For future income taxes, $26.5 million was set aside over the nine-month period.