Aber Sales Rise 31%, Net Earnings Soar 53%

Aber Diamond Corporation yesterday reported annual net earnings of $81.3 million on sales of $505.2 million. The previous year, Aber’s net earnings totaled $53.1 million on sales of $385.4 million.

The Canadian diamond miner and retailer said in its financial report for the fiscal year ended January 31, 2006, that sales from the mining segment increased by 24 percent compared to the prior year. Earnings from operations were $163.9 million compared to $117.3 million for the prior year.

“The Diavik Mine's exploration program is well underway to access new ore reserves,” Aber said in the release Tuesday.

Retail sales at its majority owned Harry Winston rose 44 percent, with earnings from operations reaching $11.8 million compared to $4.5 the year before. The prior year results for Harry Winston include the ten-month period from the April 1, 2004 acquisition date..

Aber's share of diamonds recovered from the Diavik Mine was 3.3 million carats for the year ended December 31, 2005, compared to 3 million carats for the same period of the preceding year.

Aber says it continues to generate strong levels of working capital, with a working balance of $285.7 million at January 31, 2006, compared to $156.6 million at January 31, 2005.

The company has declared a quarterly dividend of $0.25 per share. It holds a 40 percent stake in the Diavik diamond mine and 51 percent of high-end jeweler Harry Winston.