Aber Quarterly Record Results on Rising Rough Prices

Canadian diamond firm Aber announced record quarterly results, helped by rising rough diamond prices. Third quarter sales jumped to $153.5 million from $104.1 last year, leading to net earnings of $33.7 million compared to $8.5 million during the third quarter of 2004.

“Three sales of good quality diamonds into a strong diamond market have delivered a result for this third quarter that underpins Aber's financial year,” said chairman and CEO Robert Gannicott. Aber holds a 40 percent stake in the Diavik diamond mine and a controlling interest in luxury diamond jewelry retailer Harry Winston.

“The ongoing strong performance of Harry Winston continues to demonstrate the synergy from coupling the two most profitable bookends of the diamond industry.”

Aber’s 40 percent share in Diavik’s production yielded 871,000 carats during the quarter, down from 905,000 carats last year.

“In addition to our record overall sales levels, we achieved our highest percentage gross margin to date in both of our retail and mining segments," stated Alice Murphy, Aber's Chief Financial Officer. "These margins, being 65 percent and 55 percent, respectively, generated record net earnings of $34 million for the quarter just ended, a 77 percent increase over the previous quarter and a three-fold increase over the comparable quarter of the prior year.

“These robust earnings fueled a working capital balance now in excess of a quarter billion dollars, ensuring that the company is well positioned to fund Diavik capital requirements and growth objectives, as well as continuing to reward its shareholders through its ongoing dividend program.”