Aber Posts Soaring Q1 Sales, Profits

Aber Diamond Corp posted a more than doubling in sales for its first quarter ended April 30 while net earnings more than quadrupled as the firm benefited from strong sales at Harry Winston and operational efficiencies at its Diavik mine in Canada’s Northwest Territories.

Sales for the quarter totaled $110.1 million compared with $52.3 million a year earlier.

Net earnings jumped to $13.6 million from $2.8 million in the same period a year earlier.

Aber said it recovered 700,000 carats of diamonds as its 40 percent share of the output of the Diavik mine in the quarter ended March 31 compared with 615,000 carats for the corresponding quarter last year. Rio Tinto owns the other 60 percent of the mine.

Thomas O'Neill, Aber's President and CEO of Harry Winston, commented that the luxury jeweler had performed well in a seasonally slow period. “The results were driven by sales of high-end price points and unique one-of-a-kind jewelry on a growing base of more modestly priced jewelry. Worldwide watch sales and jewelry sales growth in Japan have also contributed to our strong operating results."

Meanwhile, Aber Chairman and CEO Robert Gannicott said, "Operational efficiencies at Diavik have continued to deliver increases in diamond production. Work has also started on the development of both the A-418 open pit and an underground mine to access all three of the existing ore bodies. Both our mining and retail segments have performed well over the quarter in a diamond market that continues to strengthen for our core products.”

Aber’s directors have approved an increase in the common share dividend to a $1 per share per year. Gannicot said the dividend increase reflected “the confidence of both management and the Board in Aber's strong financial position, prospects for the future and our strategy of returning surplus cash to shareholders".