Atlas South Sea Pearl harvest results; targets

source: http://www.tradingmarkets.com/

Sydney, Jan 17, 2008

Atlas South Sea Pearl Ltd (ASX:ATP) harvested 185,600 pearls (109,600 momme) in 2007, compared with 234,200 pearls (93,300 momme) in 2006.

Revenue from the sale of loose pearls in 2007 was $13.3m, against $10.8m in 2006.

Revenue from the sale of loose wholesale pearls increased 27pc in Japanese yen terms in 2007 versus 2006 but the stronger Australian dollar resulted in an increase of only 23pc in reported results.

The quantities of pearls sold in 2006 and 2007 were similar but with larger average pearl size in 2007, the weight was improved.

Atlas expects to harvest more than 200,000 pearls in 2008 and more than 250,000 pearls in 2009.

The group's total sales revenue for 2007 is in the order of $14.5m with the additional income generated from jewellery, by-product and other services.

Operating profit is expected to be around $5.4m, as previously projected.

The company's future objectives are to:

increase pearl production 60pc within five years from the introduction of the Malaysia project;

lift pearl sales revenue 80pc to $24m within five years;

expand the vertical integration of the business to take advantage of further value-adding opportunities, build strong brand recognition and increase geographic and product risk diversification.