Aber Q3 Profits Fall While Sales Double

Aber Diamond Corp today (Monday) reports third quarter profits fell to $8.5 million – a decrease of $5.1 million compared with the third quarter of last year.

 

Sales for the third quarter were $104.1 million, including sales of $35.1 million from its 51 percent holding in luxury jeweler Harry Winston, compared with sales of $54.0 million in the same period of last year.

The increase in sales during the third quarter was due to a rise in the quantity of rough diamonds produced. In addition, sales from Harry Winston increased $6.9 million during the quarter.

Aber completed only two rough sales during the last quarter compared to a planned three sales. The October sale was delayed to the fourth quarter as Aber decided to sell a substantial part of its sales allocation through an open market tender process that began in November.

For the first three quarters of the year ending October 31, profits were $23.6 million, slightly down on $24.5 million for the same period of last year.

January-October revenues were $240.8 million compared to $54 million a year earlier. Rough diamond sales for the first nine months were $167.4 million while sales for Harry Winston were $73.4 million.

Aber owns 40 percent of the Diavik mine in the North West Territories while diversified miner Rio Tinto owns the other 60 percent.