There were 15,142,836 ordinary shares outstanding as at June 30, 2007.
Year Ended June 30, 2007 Compared to Year Ended June 30, 2006
Our Company sold 1.4 million pounds of cobalt for $28.3 million in the fiscal year 2007, compared to 1.6 million pounds of cobalt for $18.1 million in the fiscal year 2006. The average price realized was $20.46 per pound in the fiscal year 2007, compared to $11.27 per pound in the fiscal year 2006.
The cost of sales was $16.5 million for the fiscal years 2007 and 2006, respectively. The cost of sales included depreciation charges of $5.0 million and $5.8 million and the rehabilitation expense was $0.2 million and $0.2 million in fiscal years 2007 and 2006, respectively. The gross profit was $11.7 million and $1.6 million for the fiscal years 2007 and 2006, respectively. The increase in gross profit was due to an increase in the price of cobalt.
The general and administrative expenses were $3.6 million and $3.3 million for the fiscal years 2007 and 2006, respectively. The increase of approximately 9% is primarily due to an increase in business activities. The operating income was $8.1 million for the fiscal year 2007, compared to operating loss of $1.6 million in the same period in 2006.
We recognized an equity loss of $nil and $1.9 million for the fiscal years 2007 and 2006, respectively, representing our proportionate share in the operating loss of our equity method investee. In December 2006, we sold all of our interest in our equity method investee and did not have any equity income or loss in the current fiscal year. We recognized an accounting gain of $1.3 million and $nil on the sale of the equity method investee in fiscal years 2007 and 2006, respectively.
Net income was $10.4 million (or basic earnings per share of $0.69) for the fiscal year 2007, compared to a net loss of $3.3 million (or basic loss per share of $0.22) for the fiscal year 2006.