Aber Posts Sharp Rise in Sales, Profits

Canadian miner Aber Corp reported a sharp rise in sales and profits for the second quarter driven by rising rough prices and strong sales at jeweler Harry Winston. Aber owns 40 percent of the Diavik mine in the North West Territories.

Sales for the quarter ending July 31 jumped to $115.7 million from $84.5 million a year earlier. For the six-month period, sales rose to $225.8 million from $136.8 million.

Net profits rose to $19.0 million for the second quarter from $12.3 million last year, while for the half-year profits more than doubled to $32.6 million from $15.1 million.

Meanwhile, diamond production from Diavik amounted to 1,006,000 carats in the second quarter from 909,000 carats a year earlier. For the six-month period, production rose to 1,706,000 carats from 1,524,000 a year earlier.

Aber Chairman and Chief Executive Officer Robert Gannicott said: "This robust improvement in our financial results comes in a quarter when we have had only two sales. This underscores the improvement in the performance of the Diavik Mine enhanced by rising diamond prices driven by fundamental shortages in increasingly broad ranges of diamond products. At the same time, sales continue to improve at Harry Winston as an increasing percentage of diamond requirements are met through Aber's rough diamond sales network."

Thomas O'Neill, Aber's President and Chief Executive Officer of Harry Winston added, "We continue to build on the strength of the Harry Winston brand. Sales for the six months ended July 31, 2005, are considerably stronger than the comparable period of the prior year. Our results reflect the improvements made to the salon environment, our marketing efforts and our expanded product offering, as well as our strength in the traditional Harry Winston segment of high-end one-of-a-kind jewelry pieces."