DFI weighs anchor from Vancouver (December 19, 2005)

Marine diamond miner Diamond Fields International (DFI-T, DMFDF-O) is moving its head office to Cape Town, South Africa, from Vancouver. The move is slated for early 2006 and is aimed at generating “significant savings in overhead.” The company already maintains an operational office in Cape Town.

As part of the plan, DFI’s Cape Town-based director of operations, Roger Daniel, has replaced Gregg Sedun as president and chief executive. Sedun stepped down from the dual roles to pursue other endeavours.

During the three months ended Sept. 30, DFI lost US$1.1 million (or US1 per share), compared with year-ago net earnings of US$811,898 (US1 per share). Revenue between the two periods slipped to US$750,141 from US$4.4 million on lower diamond sales.

During the recent quarter, DFI sold 3,727 carats at an average of US$201 per carat, compared with year-earlier sales of 20,799 carats at US$210 apiece.

DFI resumed mining operations with its own mining vessel, the MV DF Discoverer, in June. By the end of September, production totalled just 6,365 carats owing to poor weather and equipment problems. The period also saw the sale of three parcels of rough diamonds totalling 4,948 carats for an average price of US$194 per carat, yielding gross proceeds of US$961,000.

Shares in DFI were off a penny at 20 in late afternoon trading in Toronto following the news on Dec. 2. The shares trade in a 52-week wind of 19-58.