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Dia Met's bottom line

Doug Ashbury
Northern News Services

Yellowknife (Mar 26/01) - Dia Met Minerals lobbed millions off its Ekati mine debt last year.

That's according to the recent annual report released by Dia Met, Canada's lone diamond mining company.

For the fiscal year, which ended Jan. 31, the Vancouver-based company's outstanding debt obligations for Ekati stood at $123.5 million, down from $204.8 million a year earlier.

The debt stems from Dia Met's share of building Ekati mine as well as interest.

Based on the recent year's debt payments, Dia Met looks to pay off its Ekati debt some time in mid-2003, about 4.5 years after Ekati commenced production.

Dia Met Minerals, owns 29 per cent of the Ekati mine, which is located northeast of Yellowknife.

The company made 47.9 million last fiscal year, which is down slightly from $50.3 million the previous fiscal year.

Ekati produced 2,629,000 carats selling 2,483,000 carats at an average price of $172.52 US.

This compares with 2,514,000 carats produced and 2,243,000 carats sold at $167 US per carat the previous fiscal year.

Dia Met lists its assets at $328.9 million, up from $300.8 million a year earlier.

How much longer Dia Met will remain a Canadian-owned company is unclear.

On Oct. 17, Dia Met put itself up for sale after two shareholders who own 38 per cent of Dia Met stock said they were looking to sell their blocks of shares. The sale process is ongoing, said Dia Met.