Atlas Pacific announces dividend and share buyback

Western Australian pearl producer Atlas Pacific Ltd has announced a forecast after tax profit for the financial year ending 31st December 2006 of approximately $3 million.

The forecast comes after a review of its current and projected revenue from the sale of pearls and other products as well as the likely future movements in expenditure, foreign exchange movements and operational conditions that the company may face.

The board has approved the payment of an interim fully franked dividend of 1.5 cents per share. The record date for entitlement to the dividend payment will be the 16th June 2006 and the ex-dividend date will be the 12th of June 2006. The payment date of the dividend will be the 26th June 2006. It has been decided that the dividend reinvestment plan that is in place shall not be available for this dividend payment.

The company said it would undertake an on-market buyback of approximately 5 per cent of its outstanding capital. The buyback will commence in July 2006 (date to be confirmed) and will be in place until the specified capital has been purchased.

In another announcement to the market, the company has cancelled American Depository Receipts with the Bank of New York, who is the depository bank for the ADRs.

This will result in the ADRs that are currently listed on the NASDAQ Small Cap Market to be exchanged for ordinary shares that will be listed on the ASX after finalisation date in July 2006.

Since 1994, the company has had part of its shares traded as ADRs on the NASDAQ Small Cap Market in America.

As at market close, shares in Atlas Pacific were up 4 cents to 33 cents.