SouthernEra Diamonds 2004 Losses $14.5 Million

Canadian diamond miner SouthernEra Diamonds reported its losses before tax for 2004 were almost unchanged at $14.5 million compared with a loss of $14.6 million in 2003.

SouthernEra Diamonds, which is involved in diamond exploration in Canada, Australia, Gabon, the DRC and South Africa, said no significant revenue was generated last year from diamond sales at its 56-percent owned Klipspringer mine in South Africa compared with $3.2 million in 2003 from the sale of 37,885 carats.

Exploration and development project cost write-downs of the carrying values of certain activities in Canada’s Northwest Territories and in South Africa last year amounted to $3 million.

These write-downs relate to specific diamond prospects where exploration results fell below the consistently applied criteria SouthernEra has set for continued involvement, and such exploration activities have been terminated or put on hold.

Corporate, general and administration expenses increased from $1.2 million in 2003 to $3.5 million in 2004. This increase reflects the increased level of corporate activity, including legal, financial and accounting advice associated with the division of SouthernEra Resources Limited into two separate public companies.