WGI Heavy Minerals announces third quarter results



    COEUR D'ALENE, ID, Nov. 13 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG)
today announced results for the third quarter and nine months ended
September 30, 2007. All dollar amounts are in United States dollars unless
otherwise indicated.
    A summary of key financial results for the quarter and year-to-date is as
follows:

    
    Highlights

    -   Revenues increased 16% for the quarter to $6.7 million from
        $5.8 million in the same period a year ago. Revenues for the nine
        months ended September 30, 2007 increased 23% to $20.2 million from
        $16.5 million in 2006.

    -   Gross margin remained relatively even with the prior year quarter at
        21.2%. For the nine months ended September 30, 2007 gross margins
        increased to 22.4% from 14.2% a year ago.

    -   The Company posted a net loss for nine months of $0.7 million or
        $0.03 per share. This has significantly improved from the year ago
        period's net loss of $3.2 million or $0.13 per share.

    -   At September 30, 2007 the Company had a cash position (including
        short term investments) of $18.3 million.
    

    "The Company's performance continues to improve, relative to the past. In
absolute terms we desire still greater improvements, as do our shareholders.
Achieving those will require sustained further effort. All garnet suppliers
are experiencing changes in their ore bodies requiring improved and more
precise mineral processing. WGI's products are well known for higher quality
and reliability. However, maintaining this differentiation as feedstocks
change requires near-term expenditures affecting earnings. We continue to
improve. Our strategic planning process, mentioned in earlier communications,
is seeking to identify additional opportunities to generate and deliver
improved shareholder value." said Covell Brown, Chairman and CEO.
    During the quarter Mrs. Gloria Marks assumed the role of CFO, which was
vacated by Ms. Karla Wright Hayden as she went to pursue another opportunity.
Mrs. Marks is highly experienced in accounting systems and will aid the
company substantially to continue to improve our accounting and management
information systems and performance.

    Management's Discussion and Analysis

    We encourage those interested in the company to read this quarter's
Management Discussion and Analysis. The Company's affairs are described and
reported in further detail there.

    The Company's unaudited consolidated financial statement and the
management's discussion and analysis for the nine months ended September 30,
2007 are available on the Company's website at www.wgiheavyminerals.com.
Additional information related to the Company is also available on the SEDAR
website at www.sedar.com. WGI Heavy Minerals, Inc. is a fully integrated
miner, producer, and marketer of industrial-grade minerals and replacement
parts for ultra-high waterjet cutting systems. The Company's operations
include mining and processing facilities in Idaho, U.S. (Emerald Creek
Garnet), Tamil Nadu, India (Bengal Bay Garnet) and Ermsleben, Germany
(Kominex) and a manufacturing facility in Washington, U.S. (International
Waterjet Parts).

    This press release contains forward-looking statements concerning the
business, operations, and financial performance and condition of WGI Heavy
Minerals, Incorporated. A number of the matters discussed and statements made
in the press release contain forward-looking statements reflecting current
expectations regarding future assets. When used in this press release, the
words "believe", "anticipate", "intend", "estimate", "expect", "project", and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such words. These
forward-looking statements are based on current expectations and are naturally
subject to risks, uncertainties, and changes in circumstances beyond
management's control that may cause actual results to differ materially from
those expressed or implied by such forward-looking statements. Factors that
may cause such differences include but are not limited to: exploration and
development risks; risks related to permits and title to property; risks
related to foreign countries and regulatory requirements; operating hazards;
foreign currency fluctuations; competition; fluctuations in the market price
of mineral commodities and transportation costs; uncertainty as to
calculations of mineral deposit estimates; uninsured risks; and dependence
upon key management personnel and executives. Actual results may differ
materially from those expressed here. You should not place undue reliance on
such forward-looking statements. The Company is under no obligation to update
or alter such forward-looking statements, whether as a result of new
information, future events, or otherwise.

    
                       WGI Heavy Minerals, Incorporated

                            Financial Information
               ($ in thousands, except for per share amounts)

    -------------------------------------------------------------------------
                                              As at Sept.     As at December
    Consolidated Balance Sheet                  30, 2007            31, 2006
                                             --------------------------------
    Assets
    Cash and Short term deposits                 $18,277             $18,321
    Other Current Assets                           8,368               8,136
                                             --------------------------------
    Total Current Assets                          26,645              26,456
                                             --------------------------------


    Property, plant and equipment                  7,884               7,279
    Goodwill and Intangible Assets                 1,987               2,049
    Other Assets                                       -                   -
                                             --------------------------------
    Total Assets                                 $36,516             $35,784
                                             --------------------------------

    Liabilities & Equity
    Current Liabilities                          $ 4,903             $ 4,226
    Long-term debt                                   722               1,067
                                             --------------------------------
    Total Liabilities                              5,625               5,293
                                             --------------------------------

    Capital stock                                 53,388              53,432
    Stock-based compensation                       2,423               2,088
    Deficit                                      (25,165)            (24,510)
    Foreign currency translation account             245                (519)
    Total Equity                                  30,891              30,491
                                             --------------------------------
    Total Liabilities & Equity                   $36,516             $35,784
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                      3 months  3 months  9 months  9 months
                                         ended     ended     ended     ended
    Consolidated Statements of        Sept. 30, Sept. 30, Sept. 30, Sept. 30,
     Operations and Deficit               2007      2006      2007      2006
                                     ----------------------------------------
    Sales                               $6,708    $5,800   $20,214   $16,474
    Operating Costs                      4,981     3,951    14,815    12,320
    Depreciation, depletion and
     amortization                          305       548       879     1,816
                                     ----------------------------------------
    Gross Margin                         1,422     1,301     4,520     2,338
                                     ----------------------------------------
    Gross Margin %                        21.2%     22.4%     22.4%     14.2%

    Expenses
    Operating G&A                        1,180     1,161     3,262     3,528
    Corporate G&A                          441       372     1,291     1,168
    Interest Income                       (234)     (220)     (675)     (623)
    Interest Expense                        17        43        93       135
    Stock based compensation               113        91       334       819
    Development costs                       73        45       490       135
    Other Expenses/(income)                 21       172        50       274
                                     ----------------------------------------
    Total                                1,613     1,664     4,845     5,435
                                     ----------------------------------------

    Loss before taxation &
     Non-controlling interest             (191)     (363)     (325)   (3,097)
    Taxes & Non-controlling loss           130        37       330       135
                                     ----------------------------------------
    Loss for the period                  $(321)    $(400)    $(655)  $(3,232)
                                     ----------------------------------------
                                     ----------------------------------------

    Basic and diluted loss per
     common share                       $(0.01)   $(0.02)   $(0.03)   $(0.13)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                       3 Month   3 Month
                                        Period    Period       YTD       YTD
    Consolidated Statements           Sept. 30, Sept. 30, Sept. 30, Sept. 30,
     of Cash Flows                       2007       2006      2007      2006
                                     ----------------------------------------
    Cash flows from operating
     activities                          $(101)     $(94)   $1,194   $(1,671)
    Cash flows from investing            $(473)  $(1,935)   $4,756    $4,196
    Cash flows from financing            $(189)    $(325)    $(327)    $(960)
    Effect of exchange rate changes
     on cash & cash equivalents            $84      $(29)     $180      $(23)
                                     ----------------------------------------
    Inc. (Dec.) in cash and cash
     equivalents                         $(679)  $(2,383)   $5,803     $1,542
                                     ----------------------------------------
    Beginning cash & cash equivalents  $16,531    $5,893   $10,049     $1,968
    Ending cash & cash equivalents     $15,852    $3,510   $15,852     $3,510
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

         All figures stated in U.S. dollars unless noted otherwise.
    





For further information:

For further information: Gloria Marks, CFO, 810 Sherman Avenue, Coeur
d'Alene, ID, 83814, U.S.A., (208) 666-6000 ext. 204, Fax (208) 666-4000,
www.wgiheavyminerals.com, E-Mail cfo@wgiheavyminerals.com; Covell Brown,
Chairman, (208) 699-8470, E-mail covell@wgiheavyminerals.com; Ed Kok, Investor
Relations, (208) 666-6000 ext 39, E-Mail ed@wgiheavyminerals.com

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WGI Heavy Minerals, Incorporated

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