Peregrine Diamonds Ltd. PGDIF

DDC

[MrBigger]

Dominion Diamond Corporation reports Continued Strong Operating Results Supporting Dividend Declaration 8:00PM ET on Wednesday Apr 08, 2015 by Business Wire Dominion Diamond Corporation (TSX:DDC)(NYSE:DDC) (the "Company" or "Dominion") reports fourth quarter 2015 (November through January) and fiscal 2015 full year financial results. Unless otherwise indicated, all financial information is presented in US dollars. Dividend Following the strong results of fiscal 2015, the Board of Directors has declared a dividend of 40 cents per share to be paid in full on May 21, 2015 to shareholders of record at the close of business on April 30, 2015. This dividend will be an eligible dividend for Canadian income tax purposes. The Company also announces that, subject to declaration by the Board of Directors, it intends to pay a regular annual dividend of 40 cents per share in total to be paid semi-annually through an interim and final dividend. For fiscal 2016 an interim dividend of $0.20 per share is expected to be paid in or around November 2015, and the final dividend is expected to be paid in or around May 2016. These dividends will also be eligible dividends for Canadian income tax purposes. Dan Jarvis, Acting Chairman stated: "We have initiated a dividend at a level which we are confident is sustainable, while allowing us to continue to pursue our plans for growth for the Company." Cash Flow During the fourth quarter of fiscal 2015, the Company generated strong free cash flow of $108 million and free cash flow per share of $1.27 (2014: $30 million or $0.36 per share). During the full year of fiscal 2015, the Company generated free cash flow of $183 million and free cash flow per share of $2.15 (2014: $44 million and $0.52 per share). The terms free cash flow and free cash flow per share do not have a standardized meaning according to IFRS. See "Non-IFRS Measures" below for additional information. Brendan Bell, Acting Chief Executive Officer stated: "This cash flow is reflective of strong operating performance illustrated by operating profit of $52 million for the fourth quarter and $196 million for the full year." Profit Before Income Taxes The Company recorded profit before income taxes of $166 million for the year (2014 - $4 million), and net profit attributable to shareholders from continuing operations of $66 million or $0.78 per share for the year (2014 - $(23) million or $(0.27) per share). Included in net profit attributable to shareholders was the impact of foreign exchange on income tax expense. The Canadian dollar weakened significantly against the US dollar year over year, moving from a Canadian/US dollar exchange rate of CDN$1.11:US$1.00 to CDN$1.27:US$1.00, the majority of which occurred late in January 2015. This change in foreign exchange rates resulted in income tax expense in the year of $34 million or $0.40 per share (2014 - $21 million or $0.24 per share), $15 million (2014 - $16 million) of which relates to revaluations of foreign currency non-monetary items (primarily consisting of mining assets and liabilities), and of net deferred tax liabilities, both of which are non-cash items. Continuing operations includes all costs related to the Company's mining operations, including those previously reported as part of the corporate segment. The Company recorded profit before income taxes of $48 million in the fourth quarter (2014 - $7 million), and a consolidated net loss attributable to shareholders of $(1) million or $(0.01) per share (2014 - $(8) million or $(0.09) per share). Included in net loss attributable to shareholders was the foreign exchange impact on income tax expense. During the quarter the Canadian dollar weakened significantly against the US dollar, moving from a Canadian/US dollar exchange rate of CDN$1.13:US$1.00 to CDN$1.27:US$1.00, the majority of which occurred late in January 2015. This change in foreign exchange rates resulted in an income tax expense of $29 million or $0.34 per share in the fourth quarter (2014 - $14 million or $0.16 per share), $12 million (2014 - $9 million) of which relates to revaluations of foreign currency non-monetary items, and of net deferred tax liabilities, both of which are non-cash items. Balance Sheet The Company has a strong balance sheet and is well-funded to achieve its growth objectives. As of January 31, 2015, the Company held total cash and cash equivalents of $458 million. Diamond Market The market remained subdued in the fourth fiscal quarter, but the year ended on a more positive note as the major producers allowed their clients to defer rough diamond purchases in areas where they had accumulated polished diamond stocks. This took some pressure off of liquidity at the time when cash from sales made into the United States for the holiday season flowed back into the market. The fiscal year ended with rough diamond prices slightly ahead of prices at the beginning of the year.

[Fivecarat]

Am I reading this NR right that they will pay a .40 dividend per share to SH on record as of April 30, 2015, on May 21,  2015? 

[ekim]

On first read of the dividend for DDC, it appears they want to distribute some cash to shareholders and future profits and that would seem to go against expanding outside of their own properties (beyond Jay pipe, etc.) and take over another company. That is the cash side. However, when you do a dividend...all of a sudden the market takes note of the yield. Depending on the risk the market gives

[Fivecarat]

Well right now it is up .61 or 3%

[MrBigger]

They are in great shape. Low share count, no debt and good cash/inventory holdings. I believe pension/income funds will start buying DDC now for yield and DDC will head to $30 this year. This gives them a very strong position for acquisitions and or joint ventures:)

[bludogg]

Is this the PGD board or the DDC board or is there a problem at DDC and the poster boys are soliciting cash input???

[ekim]

Ddc is a strong candidate for taking over pgd at a premium. The stronger ddc is, this potential increases.ekim

[robybob]

DDC, great company, great pipes, 2 billion dollar market cap, made 65 million dollars this year.........pause.........breath......patience...... think about it my fellow Chidliakian's. Oiltar, note the "k" in Chidliak. :-D

[Fivecarat]

Yes indeed this is the Pgd forum, but as has been spec before, DDC might some day have a connection with Pgd in the future in some way and I for one am open to some discussion on other diamond stocks here as long as the reason for such talk is valid and pertaining to Pgd in some way.  

[MrBigger]

Especially as PGD has a pipe in the vicinity that may or may not be mill feed some day for DDC's operations.